GrainCorp reports 19% increase in net profit

by World Grain Staff
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SYDNEY, AUSTRALIA — GrainCorp Limited reported on Nov. 14 net profit of A$205 million for the fiscal year ended Sept. 30, a 19% increase from the previous fiscal year.
GrainCorp Managing Director and Chief Executive Officer Alison Watkins said the sustained improvement in financial performance in the 2012 financial year had been driven by strong volumes, amplified by the substantial progress made in capturing value from the company’s integrated assets and global operations.
“We are pleased to report that GrainCorp delivered record results for FY12, achieving our financial and operational targets. GrainCorp’s focus remains capitalizing on the strengths of our infrastructure and processing assets to deliver additional value for our shareholders,” Watkins said. “Our business is ideally positioned to benefit from the growth in global demand for grain and processed grains, with global trade in our core grains expected to double by 2050. During FY12, we established a substantial presence in the attractive edible oils sector; and we have maintained a strong and flexible balance sheet which enables us to continue to pursue growth initiatives.”
GrainCorp’s board has declared a fully franked final dividend of 35¢ per share (cps), comprising 20¢ ordinary and 15¢ special, bringing the total FY12 dividend to 65¢ cps (FY11: 55¢ cps).  Watkins said that the current eastern Australia harvest was generally proceeding positively.
“Production forecasts average about 18.3 million tonnes. FY13 volumes will be supported by strong export demand and the above-average carry-in of 4.3 million tonnes,” she said.
GrainCorp outlined its strategic plan that targets incremental underlying EBITDA of A$110 million by the end of fiscal year 2016. It includes progress on 35 previously announced projects across storage and logistics, marketing and malt. The plan also includes strengthening and optimizing its oils network from the integration of oil crushing and refining capability. GrainCorp said it will pursued non-grain and bulk liquids volumes growth supported by continuous improvement efficiencies.
Lastly, the company said it will improve efficiency at its ports through increased operational flexibility, long-term planning and demand management through long-term port protocols and introduction of an industry code of conduct.
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