Drought impacts GrainCorp results
(Posted on 14/05/19)
Australia's largest grain handler has recorded $59 million half-year loss due to drought and the lowest East coast Australian grain production in 10 years.
GrainCorp has reported underlying EBITDA1 for the half year ended 31 March 2019 of $27 million (HY18: $119 million)
and an underlying net loss after tax2 of $48 million (HY18 net profit after tax: $36 million). The statutory net loss after
tax3 was $59 million (HY18 net profit after tax: $36 million).
GrainCorp is a leading international agribusiness with diversified operations that span four continents and supply customers in over 30 countries.
The company operates a unique mix of interlinked businesses – Grains, Malt and Oils – which provide a diverse range of products and services to customers across the food and beverage supply chain.
GrainCorp Chief Executive Officer Mark Palmquist said these results reflect a particularly challenging period in grains
and oilseeds, including severe drought conditions in eastern Australia and grain flows have been disrupted by grain
trade conditions.
“East coast Australian grain production was the lowest in over a decade and this has had a significant unfavourable
impact on both our Grains and Oilseeds businesses,” Mr Palmquist said.
“There was continued positive performance from our Malt, Feeds and Bulk Liquid Terminals operations. Our Foods
business also continued to achieve ongoing efficiency improvements.
“GrainCorp recorded encouraging improvements in the Group’s two key safety measures, although we are determined
to pursue further improvement.”
As a result of the half-year financial performance, the Board has determined that GrainCorp will not pay an interim
dividend this period.
The company continues to progress its Portfolio Review initiatives, including the demerger of its Malt business, the
combination of Grains and Oils, simplification and cost reduction initiatives, and the sale of the Australian Bulk Liquid
Terminals to ANZ Terminals. Active engagement with parties who have expressed an interest in part or parts of GrainCorp’s portfolio continues.
As one of Australia's leading grain exporters, GrainCorp owns Eastern Australia's largest integrated grain storage and transport network. Diversified operations span four continents and the global food supply chain. Traceable supply of quality grain and value-added food processing capabilities mean GrainCorp's products and expertise are sought internationally by leading food manufacturers.
Latest News
NGFA applauds Senate confirmation of Lindberg as USDA trade undersecretary
(Posted on 04/08/25)The National Grain and Feed Association (NGFA) has commended the U.S. Senate for confirming Luke... Read more
Cargill to acquire Mig-Plus, expanding animal nutrition business in Brazil
(Posted on 04/08/25)Cargill, one of the world’s leading food providers, continues to advance its growth strategy in... Read more
Resilient financial results as Rio Tinto grows and diversifies
(Posted on 30/07/25)Rio Tinto has announced a 6% production year-on-year uplift, thereby delivering on strategy through... Read more
K-SURE and Trafigura $200m financing agreement to support Korean shipping
(Posted on 30/07/25)The Korea Trade Insurance Corporation (K-SURE) and Trafigura, a global leader in the commodities industry... Read more
BHP record copper and iron ore production drives strong 2025 performance
(Posted on 21/07/25)BHP have released their Operational Review for the year ended 30 June 2025.BHP Chief Executive Officer... Read more
Dynamic Mining shipping arm and GeoServe’s one-year milestone
(Posted on 15/07/25)A strategic collaboration between Icon Gulf Trading DMCC (part of the Dynamic Group) and GeoServe Energy... Read more
SSAB and Metal Solutions start partnership in fossil-free steel
(Posted on 15/07/25)SSAB and Metal Solutions have entered a long-term partnership for the supply of decarbonized steel with... Read more
NGFA thanks lawmakers for including industry priorities in ‘One Big Beautiful Bill’
(Posted on 08/07/25)The National Grain and Feed Association (NGFA) in the USA has applauded Congress for including a slate... Read more
Fertilizers Europe: Commission announcement on CBAM falls short
(Posted on 08/07/25)Fertilizers Europe’s have released their reaction to the European Commission announcement on the... Read more
Bunge completes sale of its North America corn milling business
(Posted on 02/07/25)Bunge Global SA has confirmed that it has completed the previously announced sale of its North America... Read more
