In This Article:
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Underlying EBITDA: $268 million for FY24.
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Underlying Net Profit After Tax: $77 million for the year.
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Core Cash Position: $337 million.
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Capital Management Initiatives: Over $130 million returned to shareholders, including buyback and dividends.
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Total Dividends: $0.48 per share, fully franked.
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Oilseed Crush Volumes: Record 540,000 tonnes.
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Winter Grain Production: 23.5 million tonnes, down from 29.9 million tonnes in FY23.
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Animal Nutrition Contribution: $6.5 million in six months post-acquisition of XF Australia.
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Crush Volumes Increase: 9% increase to 540,000 tonnes.
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Net Debt: Reduced to $99 million.
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Final Dividend: $0.24 per share, fully franked, including $0.14 ordinary and $0.10 special dividend.
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Receivables Year-to-Date: 5.8 million tonnes.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Graincorp Ltd (GRCLF) reported an underlying EBITDA of $268 million for FY24, demonstrating strong financial performance.
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The company achieved record oilseed crush volumes of 540,000 tonnes, indicating operational efficiency and growth in the Nutrition and Energy segment.
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Graincorp Ltd (GRCLF) completed the acquisition of XF Australia, contributing positively to its Animal Nutrition portfolio and increasing through-the-cycle earnings to $320 million.
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The company maintained a strong balance sheet with $337 million in core cash, providing flexibility for future growth opportunities.
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Graincorp Ltd (GRCLF) declared a total dividend of $0.48 per share, reflecting confidence in its financial health and commitment to shareholder returns.
Negative Points
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Graincorp Ltd (GRCLF) faced lower production and grain handle volumes due to challenging conditions in Northern Australia, impacting overall margins.
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The Nutrition and Energy segment experienced a reduction in crush margins in the second half of FY24 due to lower global vegetable oil values and reduced canola seed supply.
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The company incurred a $10 million impact from the closure of its underperforming New Zealand Foods business at East Tamaki.
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Global grain production conditions led to competitive pressure on margins, with no major concerns about supply but no bumper crops to drive demand.
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The transformation program, aimed at unlocking efficiencies, involves significant investment with expected benefits not fully realized until FY27.
Q & A Highlights
Q: Can you provide clarity on the Nutrition and Energy segment's second half EBITDA and the impact of the East Tamaki closure costs on future earnings? A: Ian Morrison, CFO: The second half EBITDA is close to what we expect moving forward, with some noise from one-off costs like the East Tamaki closure. Typically, the first half is stronger due to harvest timing and seed availability. More details are in the appendices of the presentation.