Agricultural giant SunRice Group (ASX:SGLLV) issued a market update, tempering revenue expectations for the 2026 financial year despite maintaining a positive outlook for its bottom line.
While the group still anticipates growth in net profit after tax due to disciplined margin management, it now forecasts full-year revenue to be broadly in line with, or slightly below, the previous year.
In the Riverina region, drier conditions and lower mill-out rates from the 2025 crop have led to a smaller 2026 harvest, reducing the total volume of finished product available for sale.
SunRice is electing to preserve its existing inventory for higher-returning markets while scaling back trades in lower-margin regions.
The supply-side pressure is compounded by fierce competition across key Pacific markets, further impacting revenue from lower-margin volumes.
The group reported that a sharp appreciation of the Australian dollar against the US dollar is negatively impacting the translation of results from its foreign operations.
Furthermore, ongoing conflict in the Middle East has disrupted critical global shipping routes and logistics, hindering sales in that sizeable market.
At the time of reporting, SunRice Group's share price was $12.02.