Graincorp Ltd
ASX:GNC
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Graincorp Ltd
GrainCorp Ltd. is a diversified food ingredients and agribusiness company. The company is headquartered in Sydney, New South Wales and currently employs 2,380 full-time employees. The firm operates through two segments: Agribusiness and Processing. The Agribusiness segment provides grains and oils supply chain business with diversified international grains and oils. Its Agribusiness segment provides commodities and products, including wheat, coarse grains (including barley, sorghum and corn), oilseeds, pulses and organics. The Processing segment is engaged in a vertically integrated edible oils crushing, processing, manufacturing and distribution business with a footprint across both Australia and New Zealand. The firm operates two oilseed crushing facilities, which are used to produce canola oil and canola meal in Victoria and Western Australia. The company also operates two processing plants in Victoria for refining, bleaching, deodorizing and blending edible fats and oils to produce ingredients for the food industry. The firm also operates in the United Kingdom, Europe, Asia and North America.
GrainCorp Ltd. is a diversified food ingredients and agribusiness company. The company is headquartered in Sydney, New South Wales and currently employs 2,380 full-time employees. The firm operates through two segments: Agribusiness and Processing. The Agribusiness segment provides grains and oils supply chain business with diversified international grains and oils. Its Agribusiness segment provides commodities and products, including wheat, coarse grains (including barley, sorghum and corn), oilseeds, pulses and organics. The Processing segment is engaged in a vertically integrated edible oils crushing, processing, manufacturing and distribution business with a footprint across both Australia and New Zealand. The firm operates two oilseed crushing facilities, which are used to produce canola oil and canola meal in Victoria and Western Australia. The company also operates two processing plants in Victoria for refining, bleaching, deodorizing and blending edible fats and oils to produce ingredients for the food industry. The firm also operates in the United Kingdom, Europe, Asia and North America.
Strong Results: GrainCorp reported outstanding first-half EBITDA of $383 million and net profit after tax of $200 million, underpinned by high processing volumes, robust margins, and a return on invested capital of 22.7%.
Guidance Upgrade: Full-year 2023 EBITDA guidance was raised to $500–560 million (from previous guidance), and net profit forecast to $220–260 million.
Dividend Declared: The board declared a $0.24 per share fully franked interim dividend, made up of a $0.14 ordinary and $0.10 special dividend.
Balance Sheet: The company maintains a very strong balance sheet with $200 million in core cash and a $121 million stake in United Malt Group.
Strategy Update: GrainCorp is evaluating a new oilseed crush plant to capitalize on growing demand for renewable fuel feedstocks and sustained high crush margins.
Cycle Earnings Lifted: Through-the-cycle average EBITDA guidance was upgraded from $240 million to $310 million, reflecting increased confidence in sustainable earnings.
Ongoing Strong Demand: Management cited strong global demand for Australian grain and oilseeds, supported by robust supply chain performance and favorable growing conditions.
Capital Management: Company highlighted ongoing shareholder returns through dividends and share buybacks, with flexibility for future investment.
