Graincorp swings to bumper half-year profit
GrainCorp has swung to a half-year profit of $388 million following the sale of its Australian Bulk Liquid Terminals business and demerger of United Malt.
The bulk grains handler had reported a $59 million half-year loss a year earlier amid severe drought and trade disruptions.
The company announced on Thursday revenue from continuing operations for the six months to March 31 rose slightly $1.96 billion, from $1.89 billion a year earlier.
Investors cheered the news, with shares in the company jumping 25¢, or nearly 8 per cent in early trade to $3.54 each.
Managing director and chief executive, Robert Spurway, said GrainCorp was well placed after the demerger of United Malt, with an improved result from continuing operations and strong balance sheet with zero core debt.
“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,”Managing Director Robert Spurway said.
“Market conditions have improved considerably, with widespread rainfall across much of eastern Australia providing optimism for a much larger crop later this year.”
The company intends to target maintaining minimal core debt and said it expects full-year capital expenditure to be $35 million to $45 million.
GrainCorp is planning for higher grain exports in the second half of 2020 and lower grain trans-shipments to eastern coast ports as domestic demand is likely to taper.
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