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Underlying EBITDA: $202 million for the first half of fiscal year '25.
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Underlying Net Profit After Tax: $69 million for the first half of fiscal year '25.
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Upgraded Earnings Guidance: FY '26 underlying EBITDA projected between $285 million and $325 million.
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Core Cash Position: $296 million at the balance date.
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Total Dividends Declared: $0.24 per share, including a $0.14 ordinary dividend and a $0.10 special dividend, both fully franked.
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Share Buyback Increase: From $50 million to up to $75 million.
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Total Grain Handle: 29.5 million metric tons, up from 25.4 million in the prior first half.
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Animal Nutrition EBITDA: $14 million for the 12 months to March 31, '25, outperforming expectations.
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CapEx: Total of $30.5 million, with sustaining CapEx expected to be $60 million to $65 million for the full year.
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Net Debt Position: $1.3 billion, driven by funding requirements for commodity inventory.
Release Date: May 15, 2025
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 a strong first half performance with an underlying EBITDA of $202 million.
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The company upgraded its earnings guidance for financial year '26 to between $285 million and $325 million.
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Graincorp Ltd (GRCLF) declared total dividends of $0.24 per share, including a fully franked ordinary dividend and a special dividend.
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The company increased its ongoing share buyback from $50 million to up to $75 million.
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Graincorp Ltd (GRCLF) demonstrated strong operating metrics, including record crush volumes and growth in animal nutrition sales.
Negative Points
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The company faced weaker export margins due to stronger global production from major exporting markets.
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Graincorp Ltd (GRCLF) reported a loss of $10 million in its Canadian joint venture, highlighting ongoing challenges in that market.
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Crush margins were structurally weaker due to a smaller Victorian canola crop and lower global demand for vegetable oils.
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The business transformation program is expected to incur higher costs, with an additional $10 million anticipated in FY26.
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The company noted increased pressure on margins in the nutrition and energy segment, with a more pronounced weighting to the first half.
Q & A Highlights
Q: Can you clarify the costing and timing of the transformation program? Specifically, how much is being spent on release one and release two? A: Broadly speaking, the spend is well locked in for the second half, with an increase of $10 million over previous advice applying in 2026. Release two is expected to be similar in quantum to release one, which is about $80 million cumulative. We've learned from release one to de-risk the program and are confident in delivering early-stage benefits following its completion. Robert Spurway, CEO