Australia: GrainCorp’s malt business continues to perform well

GrainCorp’s half-year earnings soared on the back of a big Australian grain harvest and a lift in export volumes, the Weekly Times Now reported on May 12.

The strong result, which the company (GNC) said was consistent with guidance it gave in February for the full year, led to a doubling of the interim dividend compared to last year’s payout.

Net profit for the period jumped sharply to A$90 million in the six months through March from A$20.4 mLN a year earlier, GrainCorp said on May 11.

Stripping out one-time items, earnings before interest, tax, depreciation and amortisation was 76 per cent higher at A$236 mln, from A$134 mln previously, the company said.

Revenue for the half year was 19 per cent higher at A$2.46 billion against A$2.07 bln the year before.

In late February, GrainCorp forecast its fiscal 2017 ebitda would rise to between A$385 mln and A$425 mln, from A$256 mln the year prior, thanks to a record crop in eastern Australia and a strong performance from its GrainCorp Malt business.

The malt business continued to perform well, despite an unfavourable exchange-rate impact, and the expansion of a plant in Idaho due to come on line in July will more than double the site’s capacity, GrainCorp said.

It added its oil business also benefited from increased canola supplies, which drove down procurement costs, as well as stronger demand for meal. However, it said there had been continued pressure on margins in GrainCorp Foods.

The company in March concluded the A$190 mln sale of its controlling stake in Allied Mills, one of Australia’s largest manufacturers and distributor of bakery products, to funds advised by private-equity firm Pacific Equity Partners.

12 May, 2017