Ridley Corporation Limited Overview
Ridley is Australia's largest commercial stockfeed manufacturer and, since 30 September 2025, owner of Australia's number one fertiliser distribution business, Incitec Pivot Fertilisers (IPF). The company has moved from a pure animal-nutrition processor to a diversified agricultural inputs and services platform with three reporting pillars:
Fertilisers: import, storage and distribution of urea, phosphates, UAN and SSP.
Bulk Stockfeeds: pelleted and mash feeds for poultry, pigs, dairy, beef and sheep.
Packaged Feeds & Ingredients: branded and private-label bagged feeds, extruded petfood, rendering of abattoir by-products, and mechanically deboned meat for global petfood makers.
The combination gives Ridley exposure to both Australian cropping and livestock. Management argues this counter-cyclical mix (fertiliser demand rises with good seasons, supplementary feed demand rises in dry ones) dampens weather risk.
FY26 revenue was A$2.86bn, up 120%. Underlying EBITDA was A$157.8m, up 62%. The strategic agenda now centres on integrating IPF, reconfiguring its network to import-only, and delivering the FY26–FY28 Growth Plan.
Company self-description
Ridley's annual reports open by describing the group as an integrated animal feed manufacturer serving a diverse mix of species and lifecycles. The FY25 Annual Report, titled "Leading Together", positions FY25 as a defining year that added a third growth pillar through the IPF acquisition. Since FY26 the company calls itself a "leading diversified Australian agricultural services business" (ASX acquisition announcement, 12 May 2025).
At the FY26 results, the MD described Ridley as now holding number one positions in each of its markets, with more resilience across weather, biosecurity and commodity cycles (FY26 results call, 20 August 2026).
Business model and revenue model
Revenue is overwhelmingly product sales. There is no subscription or licensing revenue of significance; NovaqPro was intended as a licensed or partnered ingredient but has been written off. The four economic engines are below.
Value-chain position
Ridley sits mid-stream in the food-protein and crop-input chains:
Upstream: it buys grain, oilseed meals, abattoir by-products and imported fertiliser.
Downstream: it sells to intensive livestock producers, rural retailers, petfood manufacturers, biofuel producers and, through IPF, to the dealer and retail networks that service broadacre and horticultural farmers.
There are cross-segment links. Some IPF fertiliser customers are also grain suppliers to Ridley's mills (CEO, 12 May 2025). The rendering plants supply a large share of Ridley's own feed ingredients (FY22 and FY23 Annual Reports).
Independent characterisation
Ridley is best understood as a scale processor and distributor of commoditised agricultural inputs. Its competitive edge rests on network density, procurement capability and customer integration rather than proprietary technology. Margins are thin: EBITDA was about 7–7.5% of revenue pre-IPF and about 5.5% in FY26, when the lower-margin, high-turnover fertiliser revenue was added. Returns depend on asset utilisation and working-capital discipline.
The IPF acquisition changes the risk profile in four ways:
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It brings in global commodity-price and freight risk.
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It structurally raises working capital, by at least A$50m more than the June 2026 level according to the CFO.
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It increases exposure to geopolitical supply shocks, illustrated by the 2026 Strait of Hormuz closure.
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It also roughly doubles the earnings base, and IPF was bought at a discount to fair value (a A$37.5m gain on bargain purchase).
Strategy
Stated strategy themes
From the FY25–FY26 Annual Reports, the 10 March 2026 Investor Strategy Day, and the FY26 results:
Diversified agricultural services leader: Number one positions in fertiliser distribution, bulk stockfeed, and parts of packaged feeds and ingredients, giving resilience across weather, biosecurity and commodity cycles.
"Climb the Wall of Value.": Move ingredient recovery output into higher-value nutrients for petfood and aquafeed (OMP, Oceania Petfood Solutions, Thailand channel).
Bulk Stockfeeds "flywheel.": Scale and technology (NIR, debottlenecking) drive cost, which wins volume, which lifts utilisation.
Fertilisers: Reconfigure into a distribution-only, import-based model; develop supply advantages; build value-added products (UAN).
Five fundamentals: practical risk management, disciplined capital allocation, people and performance alignment, targeted project delivery, embedded sustainability.
Medium-term guidance
Ridley does not give numeric EBITDA guidance. For FY27 it expects earnings growth in each segment:
Fertilisers: a full year of ownership plus integration benefits.
Bulk Stockfeeds: volume growth and better capacity utilisation.
Packaged & Ingredients: operational recovery and an improved commodity outlook.
The Growth Plan's indicative EBITDA path was "on track" at the end of year one (FY26 results).
Products & Services
Ridley does not publish list prices. Pricing is generally formula- or contract-based, reflecting ingredient costs for feed and import parity for fertiliser.
Product Portfolio
| Product / service | Description | Target customer | Status / notes |
|---|---|---|---|
Urea (imported) | Granular nitrogen fertiliser, the largest-volume product. Historically sourced partly from Middle East producers; re-sourced in 2026 from Indonesia and other Southeast Asian suppliers. | Dealers and rural retailers serving broadacre, pasture and sugar | 4 urea cargoes covered by government CFDs in 2026. A contracted urea supply of at least 700kt a year was arranged at the acquisition (May 2025 announcement). |
DAP / MAP (ammonium phosphates) | Phosphate fertilisers. Sole offtake of domestic and export volumes from Phosphate Hill (about 400kt/a DAP and 200kt/a MAP capacity), supplemented by imports. | Cropping (winter and summer) | Offtake runs to March 2027; extension under discussion with Mayfair. Ridley is holding more product domestically for 2027. |
UAN (urea ammonium nitrate) | Liquid nitrogen | East-coast cropping and horticulture | Scale-up brought forward. Tanks repurposed at the Adelaide and Portland PDCs, with a first full cargo planned for about September 2026. |
SSP (single superphosphate) | Pasture phosphate. Moved from Geelong manufacturing (closed by Dyno Nobel) to an import-only model. | Pasture, livestock regions | Higher transition inventory held in 1H FY26 |
Value-added and blended products | Fertiliser blends and value-added capacity investments | Dealers and retailers | Part of FY26 growth capex |
Perdaman urea (future) | Supply via Macquarie Commodities from the Perdaman plant near Karratha, WA | Domestic market | Expected to start in FY28 when the plant is commissioned (H1 FY26 commentary) |
| Product line | Description | Target customer | Notes |
|---|---|---|---|
Poultry feeds (broiler, layer, breeder) | Pelleted and mash complete feeds made to specification | Integrated poultry producers | Monogastric volumes +7% in FY26 |
Pig feeds | Starter to finisher rations | Integrated pork producers | Growth with existing monogastric customers is a Growth Plan pillar |
Dairy feeds | Pellets and concentrates | Dairy farmers (VIC western districts, Gippsland, northern VIC) | Terang debottleneck under way |
Beef and sheep feeds | Feedlot rations, supplementary and drought feeds | Feedlots, graziers | Ruminant volumes +11% in FY25 on dry-season supplementary feeding |
Concentrates | High-nutrient concentrates for on-farm mixing | Mixed farmers, dairies | New A$1.6m concentrate line at the Gunbower feedmill (November 2025) |
Ridley Direct | Grain and co-product procurement and trading using group flows | Third-party buyers | Fourth year of profitability in FY26 |
| Product / brand | Description | Target customer | Notes |
|---|---|---|---|
Barastoc and other packaged rural brands | Bagged poultry, horse, livestock and hobby-farm feeds | Rural retail, produce stores | Barastoc is Ridley's longest-established consumer-facing brand |
Supplements and blocks | Lick blocks and mineral supplements | Graziers | Benefited from dry conditions in 1H FY25 |
Private-label extruded dogfood | Kibble manufactured at the Narangba extrusion plant | Petfood brand owners and retailers | Long-term private-label contracts signed; volume +33% in FY26 |
Ingredient Recovery: poultry meal | Rendered poultry protein meal (about A$1,100/t, August 2026) | Petfood, aquafeed, stockfeed; Asian export markets | Exports suspended during avian influenza events |
Ingredient Recovery: meat-and-bone meal | Rendered ruminant protein (about A$600/t) | Stockfeed, petfood | Prices flat for about 18 months |
Ingredient Recovery: tallow | Rendered fat (about A$1,800/t in August 2026, against about A$1,500/t in 2H FY26) | Biofuel, oleochemicals, feed | Firming prices support FY27 |
OMP mechanically deboned meat frozen blocks | Multi-species (lamb, beef, venison, veal) MDM blocks | Domestic and global petfood makers | New Timaru greenfield plant uses plate-freezing technology |
Oceania Petfood Solutions | One-stop shop selling owned and agency petfood ingredients in Australia | Petfood manufacturers | Growth Plan initiative |
Direct supply chain into Thailand | Ingredient export channel to Asia's petfood manufacturing hub | Thai petfood makers | Established in FY26 |
NovaqPro® | Novel microbial biomass feed ingredient that boosts prawn growth (originally developed with CSIRO) | Tropical prawn farmers (India, Indonesia, Thailand) | First profit in FY23; registered in Thailand in FY25. Written off (A$28.7m after tax) in FY26. Run leanly (loss under A$1m) while strategic partners are sought. |
Domestic extruded aquafeed | Prawn and fish feeds | Aquaculture farms | Exited in FY25 to free extrusion capacity for petfood |
Financial Narrative
Basis:
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FY22–FY25 income statement and balance-sheet line items use S&P Global Market Intelligence standardised data (StockAnalysis). FY26 balance-sheet and cash-flow data come from the same source, updated 19 August 2026.
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FY26 profit and loss uses company-reported figures from the Appendix 4E and results call.
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Company "underlying EBITDA" and S&P "EBITDA" differ in definition, so both are shown and labelled.
Income statement
Notes on the income statement:
FY25 underlying EBIT (A$67.2m): A$97.5m less D&A of A$30.3m (FY26 D&A A$43.4m less the A$13.1m increase).
FY26 underlying EBIT (A$114.4m): A$157.8m less A$43.4m D&A.
FY26 statutory EPS (7.4c): is computed as A$27.6m ÷ about 374.9m shares.
FY26 underlying EPS conflicts between sources: The results deck summary gives 16.3c (+18%); the call transcript says 15.3c. Flagged as a source conflict; 16.3c is used here.
FY26 DPS (10.35c): assumes an interim of about 5.0c, implied from A$37.6m dividends paid in FY26 (FY25 final about A$18.7m plus FY26 interim about A$18.9m), plus the 5.35c final. The interim figure is not directly verified.
FY25 underlying NPAT (A$43.1m): is implied from the FY26 +41.5% growth rate.
Margins (%)
The FY26 EBIT margin is on an underlying basis.
Balance sheet
Cash flow
Source: S&P Global via StockAnalysis: - FY22 divestment proceeds are recorded as "other investing" by S&P.
- FY26 operating cash flow includes about A$40m of one-off acquisition, integration and restructuring cash costs; company-reported capex was A$67m (FY26 call).
Ratios
Notes on the ratios:
Computation basis: all ratios are computed from S&P data in 6.1 and 6.3, except where marked as company basis.
Current ratio: the company quotes 1.52 for FY26 on the call; the S&P balance sheet gives 1.27. Definitions differ (classification of inventory facilities).
FY25 leverage: reported as below zero because of net cash from the equity raise proceeds.
FY26 interest coverage: uses underlying EBIT of A$114.4m against net finance costs of A$32.2m (including about A$8–10m a year of non-cash lease unwind).
FY26 cash conversion cycle: is not computed, because only nine months of IPF is consolidated against a full year-end balance sheet and the result would be distorted.
ROIC: not computed because the invested-capital definition is not disclosed. The company reports underlying NPAT ROFE of 8% for FY26, Bulk Stockfeeds EBITDA ROFE of 32%, and Fertilisers EBITDA ROFE of 20%.
Trend commentary
Revenue. FY23's +20% reflected grain and protein price inflation passed through in feed pricing rather than volume. FY24–FY25 were flat to modestly up as commodity prices eased. FY26's +120% is almost entirely the IPF consolidation: about A$1.5bn of incremental revenue in nine months, implying an annualised fertiliser revenue run-rate near A$2bn at 2026 prices.
Profitability. Underlying EBITDA rose about 75% across FY24–FY26 (A$90.0m to A$157.8m). The EBITDA margin compressed to 5.5% because fertiliser distribution is high-turnover and low-margin. Statutory NPAT fell 36.4% in FY26 because of A$33.5m of net ISIs:
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A$33.8m of acquisition and integration costs (including A$13.3m of IT integration);
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the A$28.7m NovaqPro write-off;
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a A$5.0m inventory fair-value unwind;
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partly offset by a A$37.5m bargain-purchase gain, revised down from the A$55.9m provisional estimate at the half year.
Below EBITDA. The FY26 profit and loss was diluted by D&A (+A$13.1m to A$43.4m) and net finance costs (+A$22.5m to A$32.2m), both lifted by leases assumed with IPF. Management guides to:
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funding costs of slightly under about A$30m a year in FY27;
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A$8–10m of non-cash lease interest;
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an underlying tax rate of 26–30%;
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corporate costs a little above A$16m.
Balance sheet. Total assets nearly tripled to A$1.98bn. Inventory rose from A$103m to A$490m and receivables from A$145m to A$442m, reflecting fertiliser's seasonal stock build that peaks around March. Leverage of 0.85× at 30 June 2026 was flattered by early seasonal sales. Management says June leverage would normally sit near the middle of the 1.0–2.0× target range, and that steady-state fertiliser working capital is about A$50m higher than at June 2026. Liquidity headroom was A$444m, with term facilities maturing in September 2028 (three-year) and September 2030 (five-year).
Cash flow. Operating cash flow of A$122.4m (+79%) was strong despite A$40m of one-offs, helped by favourable fertiliser working-capital timing. Capex doubled to about A$67–69m:
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growth capex of A$23m (Timaru, Lara, fertiliser value-add);
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higher maintenance and ESG capex in the fertiliser network and Ingredient Recovery.
The maintenance capex target was re-based to 80–100% of depreciation (from 60–80%) because acquisition accounting lowered depreciation; management says cash spend is unchanged.
Dividends. DPS rose every year from FY21 (2.0c) to FY26 (about 10.35c). The payout target is 50–70% of underlying NPAT, and the FY26 final represented a 64% payout.
Financial Detail
Segment Overview
| Segment | Contents | Products and services |
|---|---|---|
Fertilisers (from FY26) | Former IPF distribution business, including the PDC network in Brisbane (Fisherman Islands 3PL), Townsville, Adelaide, Portland and Geelong; the Phosphate Hill offtake; SSP converted to an import model | Urea, DAP/MAP, UAN, SSP, blends and value-added products; supply to dealers and rural retailers |
Bulk Stockfeeds | Bulk feedmills in VIC and QLD (for example Lara, Terang, Pakenham, Gunbower, Clifton) plus Ridley Direct (grain and co-product trading) | Pellets, meals, concentrates, premixes for poultry, pigs, dairy, beef and sheep |
Packaged Feeds & Ingredients | Packaged Feeds (Narangba packing and extrusion; Barastoc and other brands; private-label dogfood); Supplements; Ingredient Recovery (Laverton VIC, Maroota NSW rendering); OMP (Laverton, Timaru NZ); NovaqPro | Bagged feeds, blocks and supplements, extruded dogfood, poultry meal, meat-and-bone meal, tallow, MDM frozen blocks, NovaqPro aquafeed ingredient |
Results by Segment
| Segment | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Fertilisers EBITDA (AUD Mn) | — | — | — | — | 72.2 |
Bulk Stockfeeds EBITDA (AUD Mn) | — | — | 44.4 | 47.8 | 50.3 |
Packaged Feeds & Ingredients EBITDA (AUD Mn) | 58.0 | 65.8 | 59.9 | 62.9 | 51.6 |
Corporate costs (AUD Mn) | — | — | — | -13.2 | -16.3 |
Group underlying EBITDA (AUD Mn) | — | — | 90.0 | 97.5 | 157.8 |
Segment (Fy26) Overview
| Segment (FY26) | EBITDA AUD Mn | YoY change | Share of segment EBITDA before corporate | EBITDA return on funds employed |
|---|---|---|---|---|
Fertilisers | 72.2 | n.m. (new) | 41.5% | 20% |
Bulk Stockfeeds | 50.3 | +5.2% (+A$2.4m) | 28.9% | 32% |
Packaged Feeds & Ingredients | 51.6 | -18.1% (-A$11.4m) | 29.6% | not disclosed |
Total before corporate | 174.1 | — | 100% | Group underlying NPAT ROFE 8% |
Segment Revenue
| Metric | 1H FY25 | 2H FY25 | 1H FY26 | 2H FY26 |
|---|---|---|---|---|
Group underlying EBITDA | 50.6 | 46.9 | 55.4 | 102.4 |
Packaged & Ingredients EBITDA | 35.7 | 27.2 | 25.6 | 26.0 |
Fertilisers EBITDA | — | — | 10.3 | 61.9 |
Income Statement and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (AUD Mn) | 1,049.0 | 1,260.1 | 1,263.0 | 1,302.6 | 2,864.2 |
Revenue growth (%) | 13.1 | 20.1 | 0.2 | 3.1 | 119.9 |
Gross profit, S&P basis (AUD Mn) | 99.6 | 111.4 | 115.9 | 121.2 | — |
Operating income / EBIT, S&P basis (AUD Mn) | 51.3 | 63.7 | 66.3 | 62.7 | — |
Underlying EBIT, company basis (AUD Mn) | — | — | — | 67.2 | 114.4 |
EBITDA, S&P basis (AUD Mn) | 71.7 | 83.2 | 86.4 | 86.3 | — |
Underlying EBITDA, company basis (AUD Mn) | — | — | 90.0 | 97.5 | 157.8 |
Statutory EBITDA after ISIs (AUD Mn) | — | — | — | 97.8 | 116.8 |
Pre-tax income, statutory (AUD Mn) | 60.5 | 58.6 | 56.1 | 57.8 | — |
Net income, statutory (AUD Mn) | 42.4 | 41.8 | 39.9 | 43.3 | 27.6 |
Underlying NPAT (AUD Mn) | — | — | — | 43.1 | 61.0 |
EPS basic, statutory (A$ cents) | 13.3 | 13.2 | 12.6 | 13.4 | 7.4 |
EPS underlying, company (A$ cents) | — | — | — | 13.8 | 16.3 |
Dividends per share (A$ cents) | 7.4 | 8.3 | 9.0 | 9.75 | 10.35 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin, S&P (%) | 9.5 | 8.8 | 9.2 | 9.3 | — |
EBIT margin, S&P (%) | 4.9 | 5.1 | 5.2 | 4.8 | 4.0 |
Underlying EBITDA margin, company (%) | — | — | 7.1 | 7.5 | 5.5 |
EBITDA margin, S&P (%) | 6.8 | 6.6 | 6.8 | 6.6 | — |
Net margin, statutory (%) | 4.0 | 3.3 | 3.2 | 3.3 | 1.0 |
Growth Metric Details
| Growth metric | Value |
|---|---|
Revenue CAGR FY21–FY25 (pre-IPF, organic plus OMP) | 8.9% a year (A$927.7m to A$1,302.6m) |
Revenue CAGR FY22–FY26 (including IPF) | about 28.5% a year |
Underlying EBITDA CAGR FY24–FY26 | about 32% a year |
Balance Sheet and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (AUD Mn) | 607.4 | 617.7 | 668.2 | 734.6 | 1,984.0 |
Cash and equivalents (AUD Mn) | 27.1 | 43.0 | 34.2 | 84.7 | 251.6 |
Short-term borrowings incl. current portion of LTD (AUD Mn) | 50.0 | 45.7 | 65.0 | 65.0 | 348.2 |
Long-term debt (AUD Mn) | 50.0 | 72.5 | 85.0 | 20.0 | 264.3 |
Lease liabilities, total (AUD Mn) | 11.8 | 8.7 | 13.3 | 9.2 | 213.7 |
Total debt incl. leases, S&P (AUD Mn) | 111.8 | 126.8 | 163.3 | 94.2 | 826.1 |
Net debt incl. leases, S&P (AUD Mn) | 84.7 | 83.8 | 129.1 | 9.5 | 574.6 |
Net debt, company definition (AUD Mn) | — | — | — | -64.0 | 296.0 |
Shareholders' equity (AUD Mn) | 316.0 | 315.4 | 323.1 | 458.1 | 498.7 |
Goodwill (AUD Mn) | 69.0 | 69.0 | 90.7 | 95.8 | 95.8 |
Other intangibles (AUD Mn) | 6.0 | 5.0 | 20.7 | 20.6 | 16.4 |
Working capital, S&P (AUD Mn) | 43.7 | 58.8 | 26.0 | 87.7 | 262.7 |
Inventory (AUD Mn) | 117.1 | 107.1 | 105.3 | 103.2 | 489.7 |
Receivables (AUD Mn) | 127.8 | 122.6 | 132.1 | 144.7 | 442.1 |
Payables (AUD Mn) | 152.2 | 159.5 | 159.3 | 161.3 | 578.3 |
NTA per share (AUD) | 0.75 | 0.76 | 0.67 | 0.91 | 1.03 |
Cash Flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (AUD Mn) | 46.6 | 79.1 | 105.1 | 68.3 | 122.4 |
Capex (AUD Mn) | 23.8 | 34.3 | 30.9 | 34.3 | 68.7 |
Free cash flow (AUD Mn) | 22.8 | 44.8 | 74.2 | 34.0 | 53.7 |
Free cash flow after leases (AUD Mn) | 17.5 | 39.8 | 69.0 | 27.7 | 32.7 |
Dividends paid (AUD Mn) | 17.1 | 25.2 | 27.1 | 29.5 | 37.6 |
Share repurchases / on-market purchases (AUD Mn) | 0.4 | 20.3 | 7.9 | 10.2 | 8.8 |
Equity issued (AUD Mn) | 0.0 | 0.0 | 0.0 | 125.1 | 0.0 |
Cash acquisitions (AUD Mn) | 0.0 | 0.0 | 53.1 | 14.4 | 343.5 |
Divestment proceeds (AUD Mn) | 60.1 | 0.0 | 0.0 | 22.0 | 0.0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE, statutory, average equity (%) | — | 13.2 | 12.5 | 11.1 | 5.8 |
ROE, underlying NPAT (%) | — | — | — | 11.0 | 12.8 |
ROA, statutory, average assets (%) | — | 6.8 | 6.2 | 6.2 | 2.0 |
Current ratio (x) | 1.19 | 1.26 | 1.10 | 1.35 | 1.27 |
Total debt incl. leases / equity (x) | 0.35 | 0.40 | 0.51 | 0.21 | 1.66 |
Headline net debt / EBITDA, company covenant basis (x) | — | — | — | -0.66 | 0.85 |
Interest coverage, EBIT / interest expense (x) | 18.0 | 11.6 | 7.7 | 5.8 | 3.6 |
Asset turnover, revenue / average assets (x) | — | 2.06 | 1.96 | 1.86 | 2.11 |
Days sales outstanding (days) | 44.5 | 35.5 | 38.2 | 40.5 | — |
Days inventory outstanding (days) | 45.0 | 34.0 | 33.5 | 31.9 | — |
Days payables outstanding (days) | 58.5 | 50.7 | 50.7 | 49.8 | — |
Cash conversion cycle (days) | 31.0 | 18.8 | 21.0 | 22.6 | — |
Segment Overview — Fertilisers
| Segment | Australia | New Zealand | Export / international |
|---|---|---|---|
Fertilisers | Core: east-coast and SA/VIC distribution via the Brisbane, Townsville, Adelaide, Portland and Geelong PDCs | None disclosed | Exports of Phosphate Hill DAP/MAP under the offtake (reduced in 2026–27 to secure domestic supply); imports from Indonesia, Southeast Asia and formerly the Middle East |
Bulk Stockfeeds | 100% (VIC and QLD mills; Tasmania supplied from VIC) | — | None material |
Packaged Feeds | Predominantly domestic | None disclosed | Limited |
Ingredient Recovery | Domestic sales of meal and tallow | — | Poultry meal exported to Asian markets; direct Thailand supply chain set up in FY26 |
OMP | About two-thirds of production at Laverton, Melbourne | About one-third at Timaru, NZ | Customers in Asia and North America (petfood) |
NovaqPro | Historical R&D and production base in Australia | — | Target markets India, Indonesia, Thailand; Thai operations noted in the FY22 Annual Report |
Share Price
| Metric | 4 Oct 2024 | 19 Sep 2025 | 19 Nov 2025 | 26 Feb 2026 | 30 Jun 2026 | 20 Aug 2026 | 15 Oct 2026 |
|---|---|---|---|---|---|---|---|
Share price (AUD) | 2.50 | 3.08 | 2.77 | 2.85 | 2.65 | 2.95 | 2.54 |
Valuation Multiples
| Multiple | Ridley | Basis |
|---|---|---|
Market cap | About A$952m | 374.85m × A$2.54 |
Enterprise value, company net debt | About A$1,248m | Plus A$296m net debt (30 June 2026) |
Enterprise value, including leases | About A$1,462m | Plus about A$214m leases |
P/E, underlying FY26 | About 15.6× | 16.3c underlying EPS |
P/E, statutory FY26 | About 34× | About 7.4c statutory EPS |
EV/EBITDA, underlying FY26 | About 7.9× (about 9.3× including leases) | A$157.8m underlying EBITDA (nine months of IPF, so forward multiples are lower) |
EV/Sales, FY26 | About 0.44× | A$2,864m revenue |
P/B | About 1.9× | Equity A$498.7m |
Price / tangible book | About 2.5× | NTA A$1.03 per share |
Dividend yield, trailing | About 4.1% fully franked (about 5.8% grossed-up) | About 10.35cps |
Analyst Ratings & Targets
| Broker | Analyst (FY26 call) | Rating / target |
|---|---|---|
Canaccord Genuity | James Ferrier | Not retrieved |
Jarden | Apoorv Sehgal | Not retrieved |
CLSA | Richard Barwick | Not retrieved |
Morgans | Belinda Moore | Not retrieved |
PAC Partners | Paul Jensz | Not retrieved |
UBS | Not applicable | Target raised to A$2.90 (early 2025, historical) |
Wilsons | Not applicable | Target cut to A$2.58 (2024, historical) |
TipRanks aggregate (2025) | Not applicable | "Buy", A$2.65–A$2.75 target (historical) |
Investing.com consensus (H1 FY26 coverage) | Not applicable | EPS about US$0.11 (FY26) and US$0.14 (FY27); revenue about US$1.78bn (FY26) and US$2.19bn (FY27) |
Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
DPS total (A$ cents) | 2.0 | 7.4 | 8.3 | 9.0 | 9.75 | 10.35 |
Final DPS (A$ cents) | — | — | — | 4.65 | 5.00 | 5.35 |
Debt Facilities
| Facility | Maturity | Notes |
|---|---|---|
3-year term facility | September 2028 | Acquisition funding |
5-year term facility | September 2030 | Acquisition funding |
Working capital and inventory financing facilities | Not disclosed | Excluded from the headline leverage calculation |
Liquidity headroom | Not applicable | A$444m at 30 June 2026 |
Analyst Conclusions
Bull case
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Full-year fertiliser plus synergies re-rates the earnings base. A maintainable A$86m plus about A$11.5m of FY27 savings implies Fertilisers at about A$95–100m. That puts group underlying EBITDA near A$190m or more, so the current EV of about A$1.25bn is only about 6.5× forward EBITDA (company net debt basis).
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Packaged & Ingredients recovery is mostly self-help. The Maroota dam is back in service (June 2026), Timaru is largely fixed, tallow has firmed to about A$1,800/t and dogfood volume is growing 33%. Recovering most of the A$11.4m FY26 shortfall is plausible.
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Supply-security assets gain value in a fractured world. Perdaman urea (from FY28), the Phosphate Hill offtake and proven Southeast Asian sourcing give Ridley a structural edge. The 0.85× leverage and A$444m headroom leave room for value-accretive bolt-ons and a growing franked dividend (yield about 4.1%).
Bear case
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FY26 fertiliser margins were flattered by the Hormuz spike and early buying. July–August 2026 demand was soft, urea prices have fallen sharply (inventory risk), and government CFD support is suspended. FY27 Fertilisers could disappoint against the nine-month run-rate (A$72.2m in nine months annualises to about A$96m).
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Phosphate Hill renewal risk. The offtake ends March 2027 with no extension yet, a two-month shutdown is flagged, and global phosphate is expected to be tight. Supply gaps or worse terms could erode Ridley's phosphate franchise and working-capital efficiency.
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Execution and financial-intensity risk. The record includes the Timaru "own goal", the NovaqPro write-off and the Maroota outage. Integration (ERP, A$30m cost) is still in progress. Finance costs (A$32.2m) and higher D&A dilute EPS conversion, and steady-state working capital about A$50m higher will push leverage towards about 1.5× on a normal June basis.
Analyst verdict
Ridley in late 2026 is a far larger and more consequential business than the A$1.3bn stockfeed processor of two years ago. The IPF acquisition was well bought: about A$300m for a business with roughly A$86m of maintainable EBITDA, with a A$37.5m bargain-purchase gain recognised. It was well funded through a pro-rata raise plus staggered term debt. Its first nine months were strong, at A$72.2m EBITDA. The core Bulk Stockfeeds franchise keeps compounding at high returns (32% EBITDA ROFE), and the Packaged & Ingredients weakness in FY26 was operational and is largely fixed rather than structural.
The market's caution is nonetheless understandable. The shares fell from about A$2.95 on results day to about A$2.54. FY26 fertiliser earnings carried an unusual price tailwind, and the business now has commodity-trading-like inventory exposure, seasonal working-capital swings and a phosphate supply contract that expires within six months. Statutory earnings quality was noisy, and management's record on greenfield projects and innovation (Timaru, NovaqPro) argues for a margin of safety.
At about 15.6× underlying FY26 EPS, about 7.9× trailing EV/EBITDA, and a forward multiple nearer 6.5× if FY27 lands around A$190m, the valuation appears to price in a reversion of fertiliser earnings below the maintainable base with little credit for synergies. The fully franked yield of about 4% provides support.
On balance, the evidence favours a constructive, risk-aware stance. The FY27 earnings trajectory looks well underwritten by self-help (about A$11.5m of savings, the Packaged & Ingredients recovery and Bulk volume growth), and the key binary is the Phosphate Hill offtake renewal. Investors should look for three things:
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a renewal on acceptable terms;
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evidence at 1H FY27 that fertiliser margins hold as prices normalise;
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a clean ERP cutover.
If all three arrive, a re-rating towards the historical feed-sector multiple on a much larger earnings base looks achievable. A failure on phosphate supply would turn the investment case into a working-capital and margin problem.
*Prepared from public information as of 16 October 2026.
Executive Leadership
Executive Leadership Team
| Name | Title | Tenure | Prior roles / background | Compensation (latest Remuneration Report) |
|---|---|---|---|---|
Quinton Hildebrand | Managing Director & CEO | — | Long-serving Ridley executive. A CEO retention agreement was announced in 2025; the stock fell about 6% on the news. | Not retrieved; see FY26 Annual Report Remuneration Report |
Chris Opperman | Chief Financial Officer | Since 5 January 2026 | General Manager Group Finance & Investor Relations, Dyno Nobel; CFO Dyno Nobel Asia Pacific (to 2021). Brings direct knowledge of the IPF business. | Not retrieved |
Richard Betts | CFO (retired) | About 2021 to January 2026 | Presented his final results at H1 FY26 | Not applicable |
Kirsty Clarke | General Counsel & Company Secretary | Current (AGM, November 2025) | Not disclosed in the sources retrieved | Not retrieved |
Adrian Lochland | CEO Novacq & Business Development (per third-party database; may be outdated) | — | — | Not retrieved |
Graeme Dillon | COO Stockfeed (per third-party database; may be outdated) | — | — | Not retrieved |
Board of Directors
| Director | Role | Appointed | Background | Independence |
|---|---|---|---|---|
Mick (Michael) McMahon | Chair | 25 August 2020 | Former CEO of Inghams Group (2016–18) and Programmed Skilled Workforce (2012–15); Executive Chair/CEO of Seafarms (2021–22); COO Coles Supermarkets; senior Shell roles; former Metcash NED; University of Tasmania graduate. Holds about 659k RIC shares. | Independent |
Quinton Hildebrand | MD & CEO | Executive director | See above | Executive |
Rhys Jones | Non-Executive Director | August 2020 | CEO/MD of Vulcan Steel since 2011 and its Non-Executive Chair from 2026; director of Tru-Test since 2007; ex Carter Holt Harvey. Victoria University and Massey University. | Independent |
Julie Raffe | Non-Executive Director | September 2022 | Former Finance Director and Company Secretary of Village Roadshow; NED of Latitude Group; Technology Committee member. Takes part of her fees in shares. | Independent |
Daniel Masters | Non-Executive Director | 4 October 2024 | Partner and founding member of AGR Partners LLC (associated with the 19.4% shareholder); international agribusiness and petfood ingredients experience; Sustainability Committee member. Holds 130,478 shares. | Not independent (substantial-holder nominee) |
Melanie Laing | Non-Executive Director | — | Listed at the November 2025 AGM. | Independent (former) |
Patria Mann | Former Non-Executive Director | — | Former KPMG partner; NED of Bega Cheese, GWA, Bapcor | Former |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
4 October 2024 | Dan Masters in, Ejnar Knudsen out | Continuity of AGR representation |
| 2025 | CEO retention agreement | Retention ahead of the transformational M&A |
5 January 2026 | Chris Opperman becomes CFO; Richard Betts retires | Ex-Dyno Nobel finance lead supports IPF integration |
FY26 | Leadership strengthened; integration programme management office set up | IPF reset and integration |
| 2026 | Melanie Laing leaves the board (final interest notice) | Board renewal |
Major Shareholders
| Holder | Stake | Source / date |
|---|---|---|
AGR Agricultural Investments LLC | 19.4% (before the raise; committed to the entitlement offer) | ASX, 12 May 2025 |
State Street Bank & Trust / State Street Global Advisors | Became a substantial holder (5% or more; exact stake not retrieved) | — |
Other top-10 holders | Not publicly verified in this cycle | See FY26 Annual Report "Shareholder Information" |
Insider ownership (directors) | Small. McMahon about 659k shares, Masters about 130k, Raffe about 57k, Jones not disclosed. | Director interest notices / MarketScreener |
Ownership mix (2024) | About 46% individuals, about 27% institutions | Simply Wall St summary (via Moomoo news feed, 2024) |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Type | Relative positioning against Ridley |
|---|---|---|---|
Fertilisers | Nutrien Ag Solutions (Nutrien Ltd) | Global integrated retail and distribution | Largest Australian farm-input retail network; partly a channel and partly a competitor |
Fertilisers | CSBP (Wesfarmers Chemicals, Energy & Fertilisers) | Manufacturer and distributor | Dominant in WA, where Ridley/IPF is less present |
Fertilisers | Yara Australia | Global nitrogen major | Import and distribution competitor in the east |
Fertilisers | Impact Fertilisers | Importer and distributor | Price competitor in eastern states and Tasmania |
Fertilisers | Australian Fertilizer Corporation | Importer and distributor | Emerging competitor (its CEO commented on 2026 phosphate tightness) |
Fertilisers | Summit Fertilizers | Importer (WA and SA) | Regional competitor |
Fertilisers | Elders (ASX: ELD) / independent rural retailers | Retail | Customers more than competitors; can buy direct from importers |
Bulk Stockfeeds | Vertically integrated poultry companies' own mills (e.g. Inghams, Baiada) | Captive feed production | Main alternative to outsourcing feed; Ridley competes on cost and service |
Bulk Stockfeeds | Riverina (Australia) | Private feedmiller | Direct competitor in NSW and QLD ruminant and monogastric feed |
Bulk Stockfeeds | Reid Stockfeeds and other regional VIC millers | Regional private millers | Dairy and ruminant competition |
Packaged Feeds | Laucke Mills; Gippsland and regional packaged feed brands; Hygain (equine) | Branded packaged feed | Rural retail shelf competition against Barastoc |
Petfood (private label) | Mars Petcare, Nestlé Purina, Real Pet Food Co. (own manufacturing) | Brand owners and co-manufacturers | Ridley supplies private label; large brand owners are customers or competitors depending on category |
Rendering and ingredients | JBS Australia, Teys and other integrated meat processors' rendering plants; independent renderers | Rendering | Compete for raw material and meal and tallow markets |
Aquafeed (exited) | Skretting (Nutreco), BioMar | Global aquafeed | Ridley exited domestic aquafeed in FY25 |
Peer Comparison FY2026
| Metric | Ridley (FY26) | Elders (ELD) | GrainCorp (GNC) | Inghams (ING) |
|---|---|---|---|---|
Revenue | A$2,864m | — | — | — |
Revenue growth | +119.9% | — | — | — |
Underlying EBITDA margin | 5.5% | — | — | — |
R&D intensity | Not disclosed | Not disclosed | Not disclosed | Not disclosed |
Business overlap with Ridley | Not applicable | Fertiliser and rural retail channel | Grain supply and ag commodities | Feed customer / captive feed |
