GrainCorp has delivered earnings of $268 million

GrainCorp has delivered earnings of $268 million for the 2024 financial year, down from $565 million, citing lower crop volumes.

GrainCorp has delivered earnings of $268 million for the 2024 financial year, down from $565 million in 2023, citing lower crop volumes.

The ASX-listed company and grain storage and handling business presented its FY24 results on Thursday morning, and executives called it a “strong balance sheet.”

The earnings before interest, taxes, depreciation, and amortisation were attributed to the reduced grain volumes across the eastern states.

At the meeting in Sydney, company managing director and chief executive officer Robert Spurway said canola volumes in Victoria alone were estimated to be down by 25 per cent for the current season. A contrast from high production in 2023.

Robert Spurway, the CEO of Graincorp

In 2024 the company handled 28 million metric tonnes of grain and 540 kilo metric tonnes (kmt) of oilseed crush. The oilseed crush was considered a record for the company.

In contrast to last season, there were difficult seasonal conditions in southern NSW and Victoria, while early results from northern NSW and Queensland were strong. This was the opposite to what the company cited during the 2023 harvest where Victoria and southern NSW had strong production and the north experienced dry seasonal conditions.

During the year, GrainCorp acquired XF Australia, which has four manufacturing sites. Adding XF Australia to the business was to build on the animal nutrition side of the portfolio.

Mr Spurway told shareholders GrainCorp had core cash of $337 million and declared dividends of 48 per cent per share.

“We are responding to evolving market conditions ... and grain handling volume is significantly down,” he said.