- Agriculture company GrainCorp (GNC) has reported strong earnings and profits for the half-year to March 31
- The last six months have seen the company go through some dramatic restructuring, particularly with the demerger from United Malt
- In light of the business changes, net profit came in at $388 million for the half-year compared to a $59 million loss the year before
- CEO Robert Spurway says the successful half-year is due to both the United Malt demerger and a general improvement across all business operations
- Shares in GrainCorp are trading over 12 per cent higher today, currently worth $3.69 each
Agriculture company GrainCorp (GNC) has reported strong earnings and profits for the half-year to March 31 after a year of dramatic restructuring.
With the sale of Australian Bulk Liquid Terminals and the demerger from United Malt, GrainCorp’s business was significantly repositioned over the last six months.
It seems to have worked out well for GrainCorp, however, with a statutory net profit after tax of $388 million for the last half-year compared to the $59 million loss over the same period the year before.
On an underlying basis — meaning not counting one-off costs or revenues — GrainCorp’s half-yearly profit came to $55 million. While much lower than the statutory figure, this is still an impressive difference to the $48 million underlying loss from the previous corresponding period.
Underlying earnings before interest, tax, depreciation and amortisation came in at $183 million this year compared to $27 million last year.
GrainCorp Managing Director and CEO Robert Spurway said the strong half-yearly result is both because of the United Malt demerger and a general improvement across all business operations.
“Each of our business segments was up substantially on the prior corresponding period, reflecting GrainCorp’s new operating model and the steps we have taken to manage crop variability and maximise our assets,” Robert said.
The company reported an annual loss over the last financial year as bad droughts impacted the company.
Robert said today, however, that market conditions have improved “considerably” since then, with widespread rainfall across the eastern parts of the country making GrainCorp optimistic about a much larger crop later this year.
Further, the company is confident in its ability to keep performing strongly despite the COVID-19 crisis.
“While COVID-19 presents challenges, we are pleased that Food and Agriculture has been classified as an essential service and we have shown resilience through the ongoing crisis by continuing to deliver for our customers,” Robert said.
Looking ahead, GrainCorp told shareholders though the summer crop is expected to be small, the company is planning for higher grain exports in the second half of the financial year.
Despite the spreading virus, GrainCorp said demand for its products as services has remained strong.
Shares in GrainCorp have tacked on 12.16 per cent today, worth $3.69 in later-afternoon trade.