Thank you for standing by, and welcome to the SunRice Group FY 2023 Half-Year Financial Results Conference Call. All participants are in listen only mode. There will be a presentation followed by a question and answer session. At that time, if you wish to ask a question, you will need to press the Star key followed by one on your telephone keypad. I would now like to hand over to your speakers today, SunRice Group CEO, Mr. Rob Gordon, and the SunRice Group CFO, Mr. Dimitri Courtelis. Please go ahead.
Thank you, operator, and welcome everyone to this morning's call. We really appreciate you taking the time to join us following the release of the financial results from our first half of FY 2023. My name is Rob Gordon. I'm the CEO of the SunRice Group, and I'm joined this morning in Sydney by our Group CFO, Dimitri Courtelis. Our plan for today's call is to provide an overview of our financial results, then open for questions to all participants who are dialed in. Along with yesterday's announcement, we've also lodged an investor presentation on the ASX, which I'd encourage you to read for more detail on the results. I'll start today with some high-level commentary before handing over to Dimitri.
The results announced to the market yesterday demonstrate strong growth in earnings, driven by the improved availability of rice in the Riverina, sales price increases across most segments and product categories, and the continued recovery of the Coprice business. The group's performance in the first half reflects the strength of our brands and market positioning, especially as we are currently seeing consumer spending being impacted by the high inflationary environment. We've continued making investments in strategic and organic growth initiatives over the last few years, and these initiatives are delivering benefits to the group which have enabled us to withstand some of the challenges that are affecting other industries and companies. We anticipate that the revenue growth achieved in the first half of FY 2023 will continue into the second half of the year, despite underlying operational and inflationary pressures continuing in the near term.
Given the strong performance achieved in the first half and the favorable outlook for the remainder of the year, we're pleased to have declared an interim fully franked dividend of AUD 0.10 per B Class Share. The SunRice Group also made further progress against its sustainability strategy in the first half of FY 2023, including the establishment of Rice Breeding Australia and the development of other collaborative initiatives focused on sustainable rice production. I'll now go into the results in a little more detail before handing over to Dimitri to step through our segment performance. As we reported yesterday, EBITDA and net profit after tax were AUD 42.6 million and AUD 19.6 million. This is higher than the prior corresponding period, up 16% and 17% respectively.
Building on last year's growth in revenue, the strong growth in earnings for the first half was underpinned by 34% growth in top-line revenue to AUD 758 million. We also updated the estimated range for the 2022 pool currently being processed and marketed to AUD 435-AUD 470 per ton for medium grain Reiziq. This represents a naturally earned record price. A range of factors drove this strong financial performance in the first half. Firstly, the improved availability of rice in the Riverina with the CY22 crop of approximately 688,000 paddy tons, being more than 50% larger than the CY21 crop. This supported strong sales volumes in key premium markets and enabled us to supply new markets which have been affected by drought, including the Middle East and Europe.
There were sales price increases across most of the group segment and product categories in response to the escalating cost base. These increases were complemented by the favorable changes in product mix in some markets, particularly the United States, where the SunRice Group focused on supplying branded rice for consumers instead of the lower value bulk export business. Our Coprice business continued its recovery and was able to increase its market share, grow volumes, and improve its product mix. We also saw benefits of the Pryde's EasiFeed acquisition flow through, which contributed 41% of Coprice's uplift in performance. It is also supporting Coprice's diversification into new geographic regions and increasing its presence in the high-value branded equine market. The ongoing recovery in Pacific markets also enabled the SunRice Group to grow rice supply volumes despite a challenging economic environment.
The group was able to deliver profitable growth despite facing a number of continuing headwinds, and these included the ongoing disruption to domestic and global supply chains and operations, as this made sourcing and shipping of products more complex and costly, as evidenced by the 108% increase in freight and distribution costs in the first half. Widespread and worsening inflationary pressures on key business inputs and costs and general inflation in the economies in which the group operates, and volatility in exchange rates, in particular, the weakening of the Australian dollar against the US dollar. With that overview, I'll now hand over to Dimitri to discuss each of our business segments, and then I'll cover off on our outlook before we go to any questions.
Thank you, Rob. Good morning to everyone joining us on the call this morning. The first segment I will discuss with you today is the Australian Rice Pool Business, which is aligned to our A Class Shareholders and deals with the receival, the milling, marketing, and the selling of Riverina rice. At approximately 688,000 paddy tonnes.
The CY 2022 crop was the largest in five years and substantially larger than the CY 2021 crop of 417,000 paddy tons. This supported a strong increase in revenue to AUD 145.8 million, which was a 62% increase on the prior corresponding period. The larger crop provided the base for higher sale volumes in premium markets, both domestically and internationally, especially in the Middle East. It also provided opportunities to supply new markets which have been affected by drought, such as Europe. Sales price increases across the segment's product portfolio, coupled with the weakened AUD, also contributed to revenue gains in both domestic and export markets. This helped to partially offset the significant inflationary pressures incurred during the period, particularly in relation to freight and labor costs.
On the back of this generally positive background and outlook, as Rob mentioned, we further revised the paddy price range, which now sits at record levels for a naturally earned paddy price of AUD 435-AUD 470 per tonne for medium grain rice. I will now move on to our International Rice segment, which sources, processes, and markets rice to both Australia and our global markets, as well as offering choice to consumers. Revenue in the segment increased by 32% from the prior corresponding period to AUD 334.8 million.
This was driven by strong sales in premium markets, particularly the Middle East and also across our Pacific markets, a favorable change in product mix for our SunFoods subsidiary in the U.S., sales price increases, and the weakening AUD against both the USD and PNG kina, which supported revenue translation. The significant increase in revenue reflects the strength of our multi-origin, multi-market business model and strategy. This has enabled the group to build and maintain international supply chains over the years, supporting demand growth even in periods of large Australian rice production. Profit margins for our International Rice segment were constrained by the delay in being able to pass on price increases arising from the increased international rice prices, shipping costs in particular, global supply chain disruptions, and general inflation.
Consequently, EBITDA decreased from AUD 16.8 million in the prior corresponding period to AUD 12.9 million. Net profit before tax decreased from AUD 12.2 million to AUD 7.5 million. The International Rice segment remains well-placed to benefit from market dynamics in the second half of the year, with the increasing risk of undersupply in drought-affected markets, opening potential new trading opportunities for the group. Turning now to our Rice Food business, which manufactures, markets, and distributes value-added products. Revenue was AUD 55.8 million, up from AUD 53.8 million in the first half of last year. Net profit before tax increased from AUD 2.6 million to AUD 3.5 million. EBITDA improved from AUD 3.5 million to AUD 4.5 million.
Sales price increases across a number of categories, particularly rice flour and microwave products, contributed to the uptick in performance in the first half of FY23. The significant increase in profitability was driven by a reduction in the cost of source materials associated with these products, notably due to the returning availability of lower-cost broken rice, which is used in rice flour. The segment's performance was further supported due to other suppliers experiencing supply shortages on imported products. However, profitability in the first half was partially impacted by COVID-related labor shortages, staff absenteeism, and delays in access to some raw materials and packaging inputs, notably in the cakes and snacks categories. The segment continues to work on innovation and new product initiatives which will further unlock growth. Our next segment, Riviana Foods, which is our specialty gourmet and entertainment food business.
There were a number of contrasting dynamics which affected the performance of the segment during the first half of FY 2023. Top-line revenue grew 10% to AUD 107.3 million, which was driven by good volume growth in various product categories, which primarily stems from the acquisition of KJ&Co. We had sales price increases and the ongoing recovery of the Australian food service sector following COVID lockdowns. However, Riviana Foods faced several major challenges during the first half, which prevented the growth in revenue to convert into profit. These include the sharp and rapid cost of imported products, European inflation, wheat prices, the Ukraine conflict, demurrage costs, energy costs, the weakening AUD against the USD, and the ongoing systemic disruption to the global shipping industry.
As a result, EBITDA decreased from AUD 6.7 million in the prior period to AUD 2.1 million, and net profit before tax decreased from AUD 5.8 million to AUD 1.4 million. Despite this challenging environment, Riviana Foods was able to bolster its onshoring capability during the period through its acquisition of the Australian Waffle Company, and it continues to explore strategic growth opportunities. We do, however, expect a recovery in the second half as price increases take effect. Our animal nutrition business, Coprice, continued its recovery during the first half of FY 2023, with top-line revenue up from AUD 68 million in the prior period to over AUD 112 million. This was supported in part by the acquisition of Pryde's EasiFeed in January 2022, which contributed an additional AUD 17.7 million in revenue.
Coprice's EBITDA and net profit before tax also improved from the first half of FY 2022 and both moved into positive territory at AUD 4 million and AUD 0.5 million respectively. Our volumes grew in the majority of product categories, driven by the improved availability of rice byproducts from a larger CY 2022 crop. The segment also grew market share and achieved increased sales prices, particularly on packaged products, which helped offset the rising cost of inputs and commodities. This pleasing outcome was delivered despite the continuation of wetter than normal conditions across Eastern Australia, which limited the demand of supplementary feed as the La Niña weather pattern enters its third year in a row.
Coprice's recovery continued to head in the right direction, with a number of actions being taken to optimize its cost base and unlock high-value markets to further increase volumes, setting a path for future growth. Turning to our corporate segment, which captures the income and costs of holding and financing assets that are used by both the Rice Pool Business, represented by A Class holders, and profit businesses, represented by B Class holders. Net profit before tax for the period was AUD 10.9 million, which was up from AUD 5.1 million, while EBITDA was up from AUD 12.1 million to AUD 19 million in FY23.
Higher levels of brand and asset financing charges were received from the Australian Rice Pool Business in the first half. The combined charges of $10.7 million, which were up 26% on the prior corresponding period, were driven by the improved availability of Riverina rice and the corresponding increase in branded sales levels. This again demonstrates that a strong rice pool business benefits both A Class and B Class shareholders. The corporate segments also benefited from a $3.4 million contribution from the divestment of surplus non-core assets in the Group in the first half of FY 2023. I'll now hand back over to Rob to cover our outlook for the rest of this financial year and beyond.
Thanks very much, Dimitri. We expect the revenue growth achieved in the first half of financial year 2023 to continue into the second half of the year, supporting profitability as the sales price increases implemented during the first half are expected to be fully realized. Some of the current headwinds we're facing, including rising inflation, global supply chain disruptions, labor shortages, and other challenging global economic conditions, are expected to continue in the second half. There are some early signs of shipping costs abating. The combination of the increased availability of Australian rice and secured global supply sources positions the Group favorably to take advantage of any undersupply in key drought-affected markets, notably in Europe and the U.S.
The rice planting window for CY 2023 is now closed, and whilst it's been disrupted by flooding across the Riverina, the Group is expecting ample Riverina rice supply in CY 2023, and the current outlook for water also points towards a large crop of Australian rice in CY 2024. This should provide a certainty of a decent Australian supply for at least the next two yea 20rs. The Group is well-positioned to take advantage of these favorable conditions and current global market dynamics to help deliver positive returns to both our A Class and our B Class shareholders. The execution of the growth strategy has demonstrated the SunRice Group's long-term approach in positioning this business favorably through its multi-origin, multi-price point global supply chain. Continuing on this path remains a priority for the Group.
We will continue to explore further organic expansion and acquisition opportunities while maintaining a disciplined approach in light of the current underlying macroeconomic environment. Finally, as you may have seen yesterday, I announced my intention to retire as CEO of the SunRice Group in August 2023. It's been a privilege to serve as the CEO of the SunRice Group. We've built an exceptionally talented and professional executive leadership team whose skills and dedication have helped position the SunRice Group as a global food group and one of Australia's leading branded food exporters. I'm proud of what we've accomplished for our customers, shareholders, employees, and the rice industry.
After spending the last 11 years as CEO of the SunRice Group and having led the company through a period of significant change and growth, I feel the time is right to hand over the reins to a successor and redirect my passion and energy into my other interests and enjoy spending more time with my family. I've provided ample notice of my intention to retire and will continue to lead the organization until our AGM in August 2023, by which time I expect to have handed over to my successor. This will help ensure stability and continuity for the business and support the process for a coordinated and effective transition to a new Group CEO. The board is conducting a global executive search. An announcement regarding the outcome of this process will be made in due course. Thank you. I'll now hand back to the operator.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Allan Franklin from Canaccord Genuity. Please go ahead.
Morning, Rob. Morning, Dimitri. Nice to touch base again. Could I please just kick off on a question, just around the supply into new markets you're alluding to, just the extent to which that might just be a transitory opportunity that you're, you know, stepping into or how do you sort of envisage building more longer-term relationships and market access?
Good morning, Allan. Thanks for the question. There's probably a mix of responses to this. On the first hand, into the U.S., for example, where a shortage of supply from local players is now providing us with unique opportunities to break through into more of the retail branded space. And having done that, I suspect we'll be able to hold on to those positions in the long term, and they'll be more of an ongoing supply opportunity both of U.S. rice and potentially rice from our multiple supply chain origins.
When it comes to Europe, at the moment, the shortages there are so severe, that certainly out of the Australian business, which does not enjoy a tariff-free entry to the EU, we're seeing customers there prepared to pay the tariffs on top of our pricing in order to secure supply. Obviously, when local supply becomes available, you would expect that more challenged to hold on to.
However, we are encouraged by progress with the FTA with the UK, that the early in the new year, there's likely to be all of the legislation passed at both ends, which may allow us to to divert more supply into the UK, which again, would be more on a free market access basis and therefore, our competitive supply chains would expect to enjoy ongoing success in that particular territory.
Helpful. Thank you. Just a couple of questions on acquisitions that have been completed, but just update on Pryde's. Looks like that's obviously tracking well. Any sort of additional commentary you can make in terms of insights into that business post-acquisition?
We've been delighted with the acquisition. You can see the underlying performance in the results. The business has actually hit record volumes in pretty much every month since we've owned it. As a consequence of that, you know, sales volumes are good, profitability is strong, and certainly in line with our business case. We're seeing further synergy opportunities down the track of expanding into other geographies where perhaps Coprice was available, but Pryde's wasn't present. As you'd expect, those sort of distribution networks being leveraged across our existing equine business and then bringing in the product portfolio from Pryde's we see gives us opportunities for the future.
Not looking to provide any particular financial shape at that level of granularity, but nevertheless, we're delighted with the acquisition. The Peter Pryde, who is the owner and founder of that business, I think has passed over to us in a very professional manner. The team there are doing a great job of keeping the momentum going. We're delighted with the acquisition.
Helpful. Thank you. That's all for me.
Thanks, Allan.
Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. We'll pause for further questions to register. Once again, to ask a question, please press star one. Thank you. There are no further questions at this time. I'll now hand back to Mr. Gordon for closing remarks.
On behalf of myself and Dimitri, I'd like to thank you all for joining us on this morning's call. We do appreciate your time at what is a very busy time for everybody. May I take this opportunity on behalf of Dimitri and myself of wishing you all a safe and enjoyable festive season. We look forward to talking again sometime in the new year. Thank you.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.