Ann: Investor Presentation FY24 1H Results, page-11

Today's AFR reports RIC was the underbidder for a pet food manufacturer. Relevant excerpts:

One of the country’s largest pet food manufacturers has a new owner, after Denmark’s BHJ bested the ASX-listed Ridley Corporation in the auction for Staughton Group.The transaction shows that pets and vets – among the hottest sectors for deals last year – are still big drawcards, with BHJ paying just north of $100 million for Staughton. The company, which is headquartered near Albury, owns Cool Off, a producer of raw pet food and aggregator of offal from abattoirs, as well as Murray River Pet Food, which makes dry foods and sells it under its own brand and under private labels.

Sources said Ridley, a major producer of animal feed with a market capitalisation of some $700 million, was the underbidder for Staughton, which had engaged Miles Advisory for the sale process. Ridley was advised by Jarden Australia.

It has been keen to expand, snapping up Oceania Meat processors, a producer of frozen meat blocks and other raw pet foods, in December. That deal is expected to close this month.

Staughton ... has been growing sales strongly. Its most recent accounts lodged with the corporate regulator shows revenues of $156.9 million in 2022, up from $132.1 million in 2021. Still, the company recorded a loss of $913,000 after paying large interest charges.
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Ash here.

QH & team know exactly what that adjacent rendering business is worth to them and let it go when the numbers became silly. Evidence of discipline. Good.

We can also see RIC's ambitions are toward rendering, for pet food and protein for stock feed. There will be other opportunities.

Ash