GrainCorp (GNC) H2 2024 earnings summary

Executive summary

• Underlying EBITDA for FY24 was AUD 268 million, down from AUD 565 million in FY23, with underlying NPAT 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.

• Strategic initiatives included a MOU with Ampol and IFM Investors for renewable fuel supply chain feasibility.

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 year-end was AUD 337 million, slightly down from AUD 349 million in FY23; net debt reduced to AUD 99 million.

• Total grain handled fell to 28.0 million tonnes from 37.4 million tonnes in FY23; winter grain production in FY24 was 23.5 million tonnes, down from 29.9 million tonnes.

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

• Dividends totaled AUD 0.48 per share, fully franked, including a 10c special dividend; AUD 27 million returned via share buyback.

Outlook and guidance

• ABARES forecasts a 2025 winter crop of 28.8 million tonnes, with improved yields in Queensland and NSW but a 25% year-on-year decline in Victoria's canola crop.

• Higher grain production is expected to support export volumes in 2025, though global competition may pressure margins.

• Nutrition and Energy businesses are expected to maintain strong volumes, but lower crush margins are likely to persist into FY25.

• Updated earnings guidance will be provided at the February 2025 AGM.