Company News Summary | 16 Apr 2018

Click the print icon in your browser to print this report. Currency is in AUD unless otherwise specified

Ridley Corporation Provides Update on Rendering Poultry Supply and Inventory Legacy

09:45:00 | Associate analysts

Original annuncemenet:Update on Rendering poultry supply and inventory legacy

Ridley Corporation advised that supply to its rendering operation at Maroota NSW from Red Lea Chickens ceased from the start of April 2018. The ability of the business under administration to resume supply to the Company will take some time to determine, and it is assumption that there is unlikely to be any further supply in the fourth quarter of FY2018. The full year on year impact of the reduction and subsequent loss is estimated to be in the vicinity of $6-7m of EBIT, of which 30% was incurred in the first half year result. It further advised that it is continuing to work through a range of alternative strategies to address the raw material and finished goods Aquafeed inventory legacy issues associated with the prior cessation of supply to Huon.

This report appeared on 2019 Morningstar Australasia Pty Limited

© Copyright 2019 Morningstar Australasia Pty Ltd ABN: 95 090 665 544 ("Morningstar"), AFSL no 240892. (a subsidiary of Morningstar, Inc.). This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written content of Morningstar. Some of the material provided is published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO").

DISCLAIMER: To the extent that any of the content above constitutes advice, it is general advice that has been prepared without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain appropriate financial, legal and taxation advice before making any financial investment decision. If applicable, investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Please refer to our Financial Services Guide (FSG) for more information at FSG or phone Morningstar on 1800 03 44 55 to request a copy. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for any use or distribution of any of this information

DISCLOSURE: Employees may have an interest in the securities discussed in this report.