RIDLEY CORPORATION LIMITED (RIC)
Share Price Analysis and Chart

04/04/2025

1

Buy

$2.90

16.00%

UBS notes Ridley Corp has some exposure to US tariffs on Australian imports, through two businesses that might be exposed to the 10% tariffs.

Ocean Meat Processors is expected to generate FY25 earnings (EBITDA) of $13m; all the sales are exports to the US, and tallow at around $10m in FY25 earnings estimates in export sales to the US.

The broker highlights Ridley has between $20m–$23m in exposed earnings (EBITDA) to the US tariffs, but the potential impact is challenging to assess at this stage.

Buy rating with $2.90 target price unchanged.

FORECAST
UBS forecasts a full year FY25 dividend of 10.00 cents and EPS of 14.00 cents.
UBS forecasts a full year FY26 dividend of 11.00 cents and EPS of 16.00 cents.

25/02/2025

1

Overweight

$2.93

17.20%

Ridley Corp's 1H25 financial result was weaker than expected, with EBITDA of $51m coming in -5% below forecasts due to softer performance in Bulk Stockfeeds, despite strong contributions from Packaged Feeds & Ingredients.

Net profit of $22m was down -2% year-on-year and -9% below estimates, primarily driven by higher depreciation and amortisation.

Management expects earnings growth in 2H25, supported by increased volumes, operational benefits from site expansions, and efficiency savings.

The broker remains positive on Ridley’s long-term outlook, citing strong reinvestment strategies and potential for sustained earnings growth.

Wilsons analysts have maintained an Overweight rating, lowering their price target slightly to $2.93 from $2.94.

FORECAST
Wilsons forecasts a full year FY25 dividend of 9.80 cents and EPS of 14.10 cents.
Wilsons forecasts a full year FY26 dividend of 11.30 cents and EPS of 15.90 cents.