GrainCorp shares lower on FY profit plunge, special dividend
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The news: Shares in GrainCorp fell at market open on the ASX after the agriculture group reported a slide in full-year profit and cut its special dividend.
The numbers: GrainCorp shares were down 2.5% to $8.63 by in early trading. Over the last 12 months the stock has surged 16.9%.
The agribusiness reported net profit of $61.8 million in the 2024 financial year, down 75.3% from last year's tally of $250 million.
Revenue fell 20.9% year on year to $6.5 billion, while underlying operating profit lowered 52.6% to $268 million.
GrainCorp declared a final dividend of 24 cents per share, comprising an ordinary dividend of 14 cents and a special dividend of 10 cents. The ordinary dividend was flat year on year while the special dividend was trimmed by 6 cents compared to FY23.
The context: GrainCorp called its full-year performance a "resilient financial result" amid an operating environment that was "more challenged" than in recent years.
The company said its East Coast Australia business expected a "marked divergence" in crop production between northern and southern regions, which impacted grain receival volumes.
Meanwhile, strong supply and subdued demand globally impacted margins across GrainCorp's business.
The group said that the outlook for its international business remains subdued, as slower customer purchasing combined with strong global supply continues to impact margins.
Domestically, GrainCorp said it was producing above-average volumes for its winter harvest, though volumes in Victoria were expected to be below its five-year average production.
In May, GrainCorp cut its full-year earnings and profit guidance for the second time as operating conditions softened.
The source: ASX announcement
