AUSTRALIA- GrainCorp reported A$200 million (US$134 million) in net profits after taxes for the first half of the 2023 financial year that ended March 31, led by an increase in oilseed crush volumes supported by a third straight canola bumper crop.
Additionally, the company also registered EBITDA of A$383 million (US$256.6 million) in earnings and down from A$427 million (US$285.53) in the first half of 2022.
The posted profit is also down from A$246 million (US$164.5 million) registered in the same period in 2022.
During the announcement of these financial results, GrainCorp raised its full-year 2023 guidance for earnings to A$500 million to A$560 million (US$334.34 to 374.46 million) and A$220 million (US$147.11 million) in net profits.
These projections are relatively higher than the previous guidance of A$470 million to A$530 million for earnings and A$180 million to A$220 million for profits.
“Both our business segments -Agribusiness and Processing- contributed to the strong performance, with outstanding operational execution and solid supply chain margins,” said Robert Spurway, managing director, and chief executive officer of GrainCorp.
In the first half of 2023, GrainCorp handled 34.8 million tonnes of grain, and oilseed crush volumes were 256,000 tonnes.
“We saw good ongoing demand for Australian grain and oilseeds, and this was supported by a third bumper crop in east coast Australia (ECA),” Spurway added.
GrainCorp also provided that the processing segment drew A$103 (US$68.87) million in revenue, up 47% from the first half of 2022, with higher canola crush volumes driven by efficiency improvements at GrainCorp’s Numurkah plant in Victoria, and stronger crush margins.
Record Australian canola production and strong demand for vegetable oils, arising from global production challenges in key oilseed growing regions, disruption of supply out of the Black Sea region, and growing markets in renewable fuel feedstocks helped crush margins for the company this half.
In addition, the 10% year-over-year increase in the oilseed crush volumes has prompted GrainCorp to conduct preliminary assessments for the creation of new oilseed crush capacity.
GrainCorp is Australia’s largest canola seed crusher, with 500,000 tonnes current capacity across two sites in Victoria and Western Australia.
“As Australasia’s largest exporter of tallow and UCO, and Australia’s largest crusher and processor of oilseeds, GrainCorp is well positioned to play a substantial role in the growing demand for renewable fuel feedstocks,” Spurway said.
Earnings for Agribusiness were down, seeing A$254 million for the first half of 2023, compared to last year’s record A$376 million, but the East Coast Australia, International, and Feeds, Fats, and Oils businesses showed strength.
GrainCorp also held that its export program ran at close to full capacity with 4.4 million tonnes of grain and oilseeds exported during the half, with export supply chain margins remaining solid.
“We are seeing good global demand for Australian grain and oilseeds and expect the strong export program to continue in the second half. Overall, GrainCorp is extremely well positioned, with our businesses performing well, a balance sheet that continues to strengthen, and a pipeline of strategic growth opportunities,” Spurway remarked.
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