Graincorp half-year profit falls 75pc to $50 million

Graincorp's half-year profit has dropped by three-quarters as grain prices fell and the agribusiness experienced a decline in east coast production.

Graincorp on Thursday announced a $50 million net profit after tax in the six months to March 31, down from $200 million a year ago.

It delivered $164 million in underlying earnings before interest, tax, depreciation and amortisation, down from $383 million a year ago, as revenue fell 25.5 per cent to $3.38 billion.

Graincorp managing director and chief executive Robert Spurway said it was a resilient result, given that grain and oilseed markets were normalising following extraordinary recent years for the industry.

Russia's 2022 invasion of Ukraine, responsible for a tenth of the world's grain production, caused grain prices to skyrocket.

Mr Spurway said strong grain volumes in southern NSW and Victoria had been offset by below-average conditions in Queensland and northern NSW.

Early indications are favourable for the 2024/25 winter crop, however, with recent rain and healthy soil moisture supporting a strong planting period on the east coast.

The company predicted a full-year underlying profit of $60 million to $80 million on underlying earnings of $250 million to $280 million.

The company declared a 24 cent per share interim dividend, the same as in 2023.

It finished the half-year with $765 million in net debt compared with $1.4 billion a year ago.

Graincorp shares were up 6.2 per cent to $8.57 late on Tuesday morning.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.

Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store