GrainCorp (GNC) H2 2024 earnings summary

Executive summary

• Underlying EBITDA for FY24 was AUD 268 million, with underlying net profit after tax of AUD 77 million and core cash of AUD 337 million.

• Record oilseed crush volumes reached 540,000 tonnes, and the animal nutrition portfolio expanded with the acquisition of XF Australia.

• Over AUD 130 million was returned to shareholders via buybacks and fully franked dividends totaling AUD 0.48 per share.

• The business transformation program commenced, targeting AUD 20–30 million in annual earnings improvement by FY27.

• MOU signed with Ampol and IFM Investors for renewable fuel supply chain development.

Financial highlights

• Underlying EBITDA declined to AUD 268 million from AUD 565 million in FY23; underlying NPAT was AUD 77 million, down from AUD 250 million.

• Core cash at AUD 337 million, slightly down from AUD 349 million; total grain handled fell to 28.0 million tonnes from 37.4 million tonnes.

• Oilseed crush volumes rose to 540,000 tonnes (FY23: 496,000 tonnes); agri-energy sales volumes increased to 379,000 tonnes.

• Declared FY24 final dividend of 14cps and special dividend of 10cps, both fully franked; AUD 27 million returned via share buy-back.

• Net debt reduced to AUD 99 million, reflecting lower commodity inventory.

Outlook and guidance

• ABARES forecasts a 2025 winter crop of 28.8 million tonnes, with strong conditions in northern Australia but a 25% year-on-year decline in Victoria's canola crop.

• Lower crush margins are expected to persist into FY25; updated earnings guidance will be provided at the February 2025 AGM.

• Global crop production remains strong, creating margin pressure for Australian exports.