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
Rio Tinto spends over A$15.3 bn with Australian suppliers
(Posted on 20/03/23)Rio Tinto increased its spend with Australian suppliers to more than A$15.3 billion in 2022, as part... Read more
Trafigura closes the refinancing and extension of credit facilities
(Posted on 20/03/23)Trafigura Group Pte Ltd., a market leader in the global commodities industry, has announced the closing... Read more
Nexyst 360 selects Nexxiot to digitalize 5000 grain containers
(Posted on 07/03/23)Nexyst 360, an innovative grain transportation solution provider, has partnered with Nexxiot to digitalize... Read more
Cargill strengthens executive team
(Posted on 28/02/23)Cargill has announced the appointments of Joanne Knight as Chief Financial Officer (CFO) and Philippa... Read more
SACE’s Push Strategy to support supplies of commodities to Italy
(Posted on 24/02/23)Trafigura, a market leader in the global commodities industry, has entered into a USD 500 million five... Read more
Job losses loom as British steel proposes coke ovens closure
(Posted on 22/02/23)British Steel has announced proposals to close its coke ovens as part of its drive to overcome global... Read more
Rio Tinto and Marubeni to create stronger Aluminium supply chains
(Posted on 20/02/23)Global miner Rio Tinto and Japanese trader and business conglomerate Marubeni Corporation have agreed... Read more
Trafigura completes acquisition of Ecobat Stolberg multi-metals plant
(Posted on 20/02/23)Trafigura, a market leader in the global commodities industry, and Ecobat, the global leader in battery... Read more
EUROFER welcomes ITRE report
(Posted on 13/02/23)Hydrogen is at the core of the green steel transition. Ensuring access to this scarce resource &ndash... Read more
Tata Steel sets up an Innovation Centre for Mining and Mineral Research
(Posted on 08/02/23)Tata Steel has established a Centre for Innovation in Mining and Mineral Beneficiation at the Indian... Read more
