December 1, 2011
GrainCorp's net profit increases by 114% in 2011
GrainCorp announced that its net profit after tax has increased by 114% to AUD172 million (US$176.4 million) in its financial results for the year ended September 30.
The company said the result was driven by grain receipts from the large 2010-11 eastern Australian grain harvest, a large export program, higher grain marketing earnings and another solid contribution from international and domestic malt sales.
GrainCorp also declared a fully franked final dividend of AUD0.15 (US$0.153) per share, and a fully franked special dividend of AUD0.20 (US$0.21) per share, taking 2011 fully franked dividends to AUD0.55 (US$0.56) per share.
The 'ex' date for the final and special dividends will be December 1. The record date will be December 7 and the proposed payment date is December 21.
"The result is very pleasing given that the 2010-11 harvest was one of the most challenging in the company's history, with record rainfall received across much of our network leading up to and during harvest," said GrainCorp Chief Executive Officer Alison Watkins. "The geographic spread and flexibility of our assets, the capability of our people and the strategic investments we made in additional storage and logistics capability, allowed us to successfully manage the large and complex task of receiving 14.9 million tonnes of grain at our country sites, and handle 8.1 million tonnes of grain through our port elevators.
"GrainCorp's grain marketing business also contributed strongly to the result, validating our strategy to integrate grain handling, processing and marketing activities.
"GrainCorp has expanded its wheat, barley, canola, sorghum and pulse exports to more than 90 customers across 25 countries. While we have grown our export business, we continue to focus closely on the domestic market, and during the year, we restructured and refocused our domestic marketing team to increase the support we provide to our important domestic customers."
Watkins said the company has received 5.2 million tonnes of wheat, barley, canola and pulses so far this season. The quality is higher due to the drier lead up to the harvest, she said.
"Harvesting in Queensland is almost complete and conditions there were certainly much improved on last year. In NSW and Victoria, the season holds a lot of promise. Production, while not as high as last year, is forecast to be above average," Watkins said. "All industry participants are hoping that harvest can continue uninterrupted by widespread extreme weather."