May 17, 2013

GrainCorp's H1 earnings reach US$227 million

The first half earnings of GrainCorp was reported at US$227 million EBITDA1 (HY12: US$235 million) and net profit after tax (NPAT) of US$109 million (HY12: US$122 million).

After significant items, the company recorded a statutory NPAT of US$88 million.

GrainCorp Managing Director and Chief Executive Officer Alison Watkins said the result reflected the eastern Australian harvest returning to a more typical size, an above-average carry-in and a solid performance from the company's processing businesses, including GrainCorp Malt and the new GrainCorp Oils business.

"Another positive first half performance demonstrates the benefits of GrainCorp's diversification strategy, as grain receivals returned to more normal levels following two very large harvests," Watkins said.

"I'm also pleased to report we continue to make good progress on the strategic initiatives we announced in November."

GrainCorp's Board has declared a fully franked interim dividend of US$0.25 per share including a special dividend of US$0.05/share, with a payment date of July 19, 2013.

Watkins made the following comments in relation to the performance of GrainCorp's individual business units, "On safety, while GrainCorp's lost-time injury performance is behind our target, we are seeing encouraging improvements in our lead indicators, particularly in our Storage & Logistics and Malt businesses. We are maintaining a substantial investment in safety and efficiency improvements over the year. Our Storage & Logistics team has maintained a firm market share of a smaller crop, with country receivals of 9.7 million tonnes for the half. Our substantial pre-harvest investment in mobile grain receivals equipment improved delivery and turnaround times at our sites and generated very positive grower feedback. GrainCorp's ports have also handled a significant export programme, elevating 5.1 million tonnes of grain and other commodities during the half."

GrainCorp Marketing's earnings are consistent with the crop size and include pleasing additional contributions from our international offices. It is good to see the sustainable performance delivered by this business through the cycle. Most of GrainCorp Marketing's business was conducted in its area of strategic focus – directly between growers and end users.