GrainCorp (GNC) H1 2025 earnings summary

Executive summary

• Reported underlying EBITDA of $202 million for 1H25, up from $164 million in 1H24, and underlying NPAT of $69 million, driven by strong East Coast Australia production and operational execution.

• Upgraded FY25 underlying EBITDA guidance to $285–$325 million and underlying NPAT to $65–$95 million, reflecting robust business performance and favorable market conditions.

• Declared interim dividends of 24cps (14c ordinary, 10c special), both fully franked, and increased share buy-back to $75 million, with $15 million completed as of May 2025.

• Continued disciplined capital management and investment in network efficiency, animal nutrition expansion, sustainability, and digital transformation.

• Revenue increased 21% year-over-year to $4,092.2 million, with strong volumes in Queensland and Northern NSW offsetting weaker conditions in Victoria.

Financial highlights

• Underlying EBITDA of $202 million (1H24: $164 million); underlying NPAT of $69 million (1H24: $57 million); reported NPAT of $58 million (1H24: $50 million).

• Total grain handled reached 29.5 million metric tons (1H24: 25.4 million); oilseed crush volumes steady at 283kmt.

• Animal Nutrition sales volumes surged to 370kmt (1H24: 218kmt), boosted by XFA acquisition, which delivered $14 million EBITDA in 12 months.

• Core cash position at $296 million as of 31 March 2025 (down from $337 million at FY24); net debt at $1.3 billion, reflecting inventory funding for larger crops.

• Interim dividend of 24cps (14c ordinary, 10c special), both fully franked; share buy-back increased to $75 million, with $15 million completed by H1 close.

Outlook and guidance

• Upgraded FY25 underlying EBITDA guidance to $285–$325 million and underlying NPAT to $65–$95 million.

• Expectation of continued strong global grain and oilseed supply, with softer crush margins anticipated in H2 due to global supply and local crop dynamics.

• Positive outlook for 2025/26 crop in Queensland and northern NSW due to excellent rainfall; Victoria's outlook dependent on upcoming rainfall.

• Guidance subject to second half grain volumes, export timing, supply chain and crush margins, and new season opportunities.

• Board expects continued capital investment in supply chain infrastructure to drive efficiency.