E-Malt.com News article: 1936

Australian grain logistics and malting concern AusBulk Ltd. reported on December 16 an 80% slump in net profit last fiscal year to A$11.1 million, a result it described as "sound" in a difficult environment. The result was built on a 5.1% decline in revenue to A$517.9 million last fiscal year from A$545.7 million in the previous fiscal year ended Sept. 30, 2002, it said.

Chairman Kevin O'Driscoll said the company's core grain storage and handling business received just 3.0 million metric tons of grain last fiscal year, down from a record 8.6 million tons previously. Drought slashed national grain production last fiscal year. O'Driscoll said the impact of the drought would also impact negatively on this fiscal year's result. "However, the company expected profit to rebound strongly as a result of an above average season in 2003," he said in a statement.

AusBulk expects to receive just under 7.0 million tons of grain into its system this fiscal year, well above the five-year annual average of 5.7 million tons, he said. AusBulk is headquartered in Adelaide, the capital of South Australia state, in which it chiefly operates its logistics business.

AusBulk also markets grain and operates a large malting business, known as AusMalt, which incorporates the businesses of Joe White Maltings and Adelaide Malting Co. Revenues from malting activities helped offset decreased revenues from grain logistics and marketing, John Murray, AusBulk's managing director said.

Last fiscal year's result underscored the importance of AusBulk's strategy of diversifying its business base to reduce risk exposure to severe weather events, he said. About 74% of consolidated earnings before interest and tax last fiscal year were derived from non-storage and handling business units, he said. "AusMalt's substantial domestic and export business provides a platform for further growth and diversification, particularly in Asia," he added.

O'Driscoll said the company still plans to list on the stock exchange, with the business and corporate restructuring over the past four years clearing the way for this to occur in 2004.


17 December, 2003