Bumper harvest to deliver double profit for GrainCorp

AAPThe West Australian
GrainCorp’s net profit is set to rise from $53 million to between $130 million and $160 million.
Camera IconGrainCorp’s net profit is set to rise from $53 million to between $130 million and $160 million. Credit: The West Australian

GrainCorp expects full-year earnings to rise by as much as two-thirds and underlying profit to more than double after a record eastern Australian crop.

Australia’s biggest listed bulk grain handler on Friday issued 2017 guidance for underlying earnings before interest, tax, depreciation and amortisation of between $385 million and $425 million — up from $256 million in 2016.

It said net profit before significant items would rise from $53 million to between $130 million and $160 million.

The company is due to release its first-half results on May 11.

GrainCorp also told Friday’s annual general meeting that chairman Don Taylor will retire on March 1 to be replaced by former Stockland chairman Graham Bradley.

“Over the years we have grown GrainCorp from a series of state-based grain-handling authorities into a diversified global agribusiness and a major economic generator in regional communities around Australia, New Zealand, North America, the United Kingdom and Europe,” Mr Taylor said.

“GrainCorp is in excellent shape, with world-class assets, strong cashflows and a healthy balance sheet — there is cause for great optimism as we look to the future.”

At 11.53am AEDT, GrainCorp shares were down 8.5 cents, 0.9 per cent, at $9.155 in a lower Australian market.

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