Graincorp lifts, UMG in capital raising
GRAIN bulk handler and marketer Graincorp has reported a net profit after tax of $388.3 million for the six months to March 31.
But the extraordinary financial result takes into account a profit of $310.5 million from the divestment of its malt division into a separate company, United Malt Group.
Graincorp’s underlying earnings before interest, depreciation and amortisation were $183 million for the six months, which includes earnings from the malting division prior to the demerger.
Underlying NPAT was $55 million.
Graincorp chief financial officer Alistair Bell said underlying earnings and NPAT were both positive results compared to the previous corresponding period.
Mr Bell said that was despite a smaller summer crop this year. The company suffered a loss of $48 million in the first six months of the previous year.
Mr Bell said the board considered paying an interim dividend but opted to review that when the full-year results were announced with “times more certain”. Graincorp managing director Robert Spurway said the company had a strong balance sheet, with core debt now zero. The company sold off Australian Bulk Liquid Terminals in the past year.
It maintained a 10 per cent stake in UMG, now valued at $112 million.
Mr Spurway said it was pleasing to see a significant turnaround in the processing division, a result of better oilseed crushing margins and greater efficiency at its Numurkah oilseed plant.
That accounted for $23 million in earnings during the past six months — a big turnaround from the $2 million loss for the previous corresponding period.
Mr Spurway maintained some optimism for the coming harvest, with good rain falling in southeastern Australia.
Graincorp is hoping its fortunes are turning around after posting good half-year results. Picture: FILE