GrainCorp (ASX:GNC) reported a resilient performance in its FY24 results despite difficult global and local market environments. Earnings, however, have come in slightly below expectations.
The company achieved an underlying EBITDA of $268 million, down from $565 million in FY23, while net profit after tax (NPAT) fell to $62 million from $250 million in FY23. This decline was attributed to reduced grain volumes on the East Coast of Australia (ECA) and increased global competition, which affected margins across various segments.
GrainCorp, headquartered in Sydney, is a leading provider of grain and edible oil solutions, managing extensive storage, processing and handling infrastructure across Australia. Its diverse offerings extend to animal nutrition and agri-energy.
In a year marked by mixed growing conditions across Australia, GrainCorp’s ECA division handled 28 million tonnes of grain, a decrease from 37.4 million tonnes in the previous year.
The company reached record oilseed crush volumes of 540,000 metric tonnes and saw increased sales in both its Animal Nutrition and Agri-energy businesses. To enhance its portfolio, GrainCorp acquired animal nutrition company XF Australia, adding four manufacturing sites and expanding its feed supplement offerings.
The company has maintained a strong balance sheet with core cash of $337m and declared total dividends of 48 cents per share.
Shares in GrainCorp are trading 2.49% lower at $8.63.