GrainCorp has reaped record earnings and will issue a special dividend to shareholders

GrainCorp has harvested record earnings and, despite floods on the east coast, is predicting a good crop in the season ahead.

GrainCorp is reaping record earnings and issued a special dividend to shareholders.

Swollen volumes of grain pouring through its processing facilities, higher exports and a leap in oilseed crush has helped GrainCorp sidestep the disruptions caused by the war in Ukraine and Covid-19 to post record profitability for 2022 and shower investors with a special dividend.

GrainCorp, the largest grain storage and handling business in eastern Australia and the leading edible oil processor and oilseed crusher in Australasia, has also provided upbeat growing forecasts for the year ahead.

Although recent heavy rainfall across large parts of the eastern coast has delayed the harvest by several weeks and posed challenges for growers, weather conditions are favourable for the winter harvest and government agencies are currently predicting another well-above average crop.

On Wednesday GrainCorp posted a 43.3 per cent increase in full-year revenue to $7.868bn for the year to September 30, as net profit rose more than 100 per cent to $380.4m.

Investors will benefit from the bumper result, with GrainCorp declaring a final dividend of 30c per share comprising a final ordinary dividend of 14c per share, fully franked, as well as a special dividend of 16c per share, fully franked.

Both the final and special dividend will be paid on December 14 with shareholders also benefiting from the $50m on-market share buyback that was announced in November and was completed in July.

“GrainCorp delivered a record result in fiscal 2022, with earnings up more than 100 per cent on last year,” said GrainCorp chief executive Robert Spurway.

“The result reflects the quality of our businesses and infrastructure assets, our operational performance, and the capability of our teams. Each of our business segments recorded an increase in activity and volumes, with more grain handled and exported, higher oilseed crush volumes and stronger foods sales.”

Mr Spurway said GrainCorp worked hard to navigate supply chain challenges and continue delivering for customers, while effectively managing costs and broader inflationary pressures.

“Disruptions to global supply chains were driven by weather events, the ongoing impacts of Covid-19 and the conflict in Ukraine. Despite these challenges, global demand for Australian grain, oilseeds and vegetable oils remained strong throughout fiscal 2022 after two consecutive bumper crops in east coast Australia.”

GrainCorp’s pre-tax earnings were up 127 per cent to $624m for the year reflecting an increase in total grain handled and strong supply chain margins for grain exports.

“We operated our ports at close to full capacity in fiscal 2022, exporting 9.2m metric tonnes of grain and oilseeds to international markets,” Mr Spurway said.

GrainCorp’s International businesses also performed well, with good export margins from Western Australia.

Mr Spurway said while flooding will impact both yield and quality in parts of the east coast, GrainCorp had a high level of grain inventory in its network, and he expected a large export program to continue throughout fiscal 2023.

“The exceptional margins achieved in the first half of fiscal 2022 moderated in the second half as expected, as supply from the northern hemisphere improved. Pleasingly, domestic and global demand for feed and milling grades remains strong.

“Oilseed crush margins are expected to remain favourable, and we are well positioned to continue operating our crushing facilities at high utilisation.

“Overall, GrainCorp is well positioned for the new financial year, with our businesses performing well, a strong balance sheet and pipeline of growth opportunities,” Mr Spurway said.

GrainCorp shares closed down 2 per cent at $7.83 each.