Deliveries to GrainCorp facilities were 9.7 million tonnes less than the same six-month period the previous year
Profits at Australia’s largest publicly traded agribusiness were down sharply late last year and early this year.
Sydney-based GrainCorp an-nounced half-year profits of $50 million Aus for the six-month period ending March 31.
It’s down 43 percent from the same period a year earlier, when GrainCorp posted profits of $88 million.
Revenues were also down at $2.06 billion, compared to $2.36 billion a year earlier.
The reduction in revenues was largely the result of reduced grain handlings and country deliveries, which affected revenues from storage, logistics and marketing operations.
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Deliveries to GrainCorp facilities during the six-month period were listed at 7.6 million tonnes, down from 9.7 million tonnes a year earlier.
“Our storage and logistics business earnings were affected by a below average carry-in and the smaller crop in northern regions,” GrainCorp interim chief executive officer Don Taylor said in a news release.
“This translated to lower grain receivals and increased demand from domestic end-users, limiting the amount of grain available for export.”
GrainCorp was the target of a potential takeover by American agri-business giant Archer Daniels Midland for much of last year.
ADM already owns an estimated 15 percent stake in GrainCorp.
Last year, it offered to buy the company’s remaining outstanding shares for $3.4 billion US.
However, regulatory authorities in Australia blocked the takeover, suggesting the sale did not support the country’s national interests.
Since then, government officials have softened their stance, suggesting Australia may allow ADM to increase its ownership stake in the company.
GrainCorp owns an extensive network of grain collection facilities, processing plants and grain export terminals in Australia, primarily in the eastern states of New South Wales and Queensland. It owns seven of eight bulk grain export terminals on Australia’s east coast.
Together, those facilities handle nearly 90 percent of Australian bulk grain exports shipped from eastern ports. The company also processes malt, canola oil and flour.
Revenues from the company’s malting and oil processing operations were both up during the six month reporting period.
In addition to its malting operations in Australia, GrainCorp also owns a collection of malting companies in North America, including Canada Malting Company, which operates malting plants in Calgary, Thunder Bay and Montreal.
Canada Malt also owns a small network of country elevators in Alberta, Saskatchewan and Manitoba.
