RiceBran: expands its focus on value-added ingredients

The Woodlands / TX. (rbt) RiceBran Technologies, a global leader in the development and production of critical nutritional and functional ingredients derived from small and ancient grains for the healthy food, nutraceutical, pet care and animal feed markets, announced it has formed an agreement with Gander Foods LLC, under which Gander Foods will engage JT Ferguson to provide management services to RiceBran’s Golden Ridge Rice Mills facility, enabling RiceBran to expand its focus on value-added ingredient opportunities. Highlights of the agreement:

  • Deal places sourcing, selling, and operations of Golden Ridge in hands of local expert.
  • RiceBran expects rapid improvement in Golden Ridge’s adjusted Ebitda contribution.
  • Gander Foods expected to purchase RiceBran equity, aligning it with RiceBran’s shareholders.

As part of the agreement, Ferguson will oversee the day-to-day operations for Golden Ridge. He is a third-generation rice miller of significant stature in the regional rice market. He brings an extensive network of local farmers for sourcing grain for the mill, with a proven track record of operating Cormier Rice.

«We have significantly improved operations at Golden Ridge over the past 18 months, driving an expected 30-40 percent increase in revenue in 2022 versus 2021, following similar gains in 2021 versus 2020,» commented Peter Bradley, Executive Chairman of RiceBran. «This progress was the result of higher volumes, increased efficiencies, and higher milling yields. While these improvements have significantly reduced adjusted Ebitda losses for the mill, overall results have been constrained by our processes for sourcing and selling rice.»

Bradley: «We expect rapid improvement in profitability at Golden Ridge from Ferguson’s ability to implement the successful Cormier business model for grain sourcing and finished rice sales, and under Ferguson’s guidance, Golden Ridge should be able to achieve further operating improvements. With these, we believe there is an opportunity to expand the mill’s production schedule from its current 5-days per week to 6 or 7 days per week, further increasing Golden Ridge’s revenue and adjusted Ebitda.»

The agreement is structured to align Gander Foods with RiceBran’s shareholders. In exchange for Gander Foods’ services, RiceBran will pay Gander Foods an initial one-time fee, and Gander Foods has agreed to use this payment to purchase unvested RiceBran common stock, which will vest in equal installments over three years, subject to Gander Foods’ continuous service to Golden Ridge. Subsequently, Gander Foods will receive quarterly performance payments based on a percentage of Golden Ridge’s positive adjusted Ebitda contribution and is expected to use these payments to purchase additional RiceBran common stock.


RiceBran Technologies Reports Second Quarter 2022 Results

The Woodlands / TX. (rbt) RiceBran Technologies, a global leader in the development and production of critical nutritional and functional ingredients derived from small and ancient grains for the healthy food, nutraceutical, pet care and animal feed markets, in August 2022 announced financial results for the second quarter ended June 30, 2022. «Sales growth for our core-SRB business is at levels not seen in years and should accelerate further in the second half of the year with the addition of a large new customer in the companion animal business,» said Executive Chairman Peter Bradley. «Losses in the quarter were higher than expected and disappointing, but isolated to our SRB derivatives business due to production issues which have been remediated and will not impact our operations in the second half of the year. Operating leverage from higher core-SRB volumes and a return to normal operations for our Value-Add SRB derivatives business should drive a significant improvement in our financial results in the second half of the year, positioning us for further improvements in 2023 and beyond.»

20220812-RICEBRAN-Q2-2022
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