We have compiled a summary of the results and outlook statements for our assessed peers of Ricegrowers Limited, trading as SunRice (ASX:SGLLV), with a particular focus on trading conditions, product pricing, freight costs, outlook statements and consensus earnings changes. The overwhelming summary of trading conditions over CY22 was ‘challenging’ outside of Treasury Wine Estates (ASX:TWE) and Ridley Corporation (ASX:RIC). The overwhelming outlook commentary assumes normalising weather conditions, price increases recouping cost inflation, lower freight costs, improved labour availability and higher earnings. Much improved results into FY25 should be seen from Costa Group Holdings (ASX:CGC), Bega Cheese (ASX:BGA) and Lynch Group Holdings (ASX:LGL). Included in RaaS SGLLV estimates are some similar assumptions around the recoupment of cost inflation through price increases, lower freight costs and more normalised weather conditions. SGLLV has been impacted more materially than peers from a freight cost perspective in H1 FY23, which represented an adjusted ~100% of reported H1 FY23 EBITDA against a peer average of ~15%. Despite share price and consensus estimate changes since initiation our Sum-of-The-Parts (SoTP) valuation for SGLLV is relatively unchanged at $8.50/share.
