GrainCorp, set to be acquired by US commodities giant Archer Daniels Midland, has suffered a 34 percent profit drop for the six months to March 31.
The grain company reported $227m in earnings and a net profit of $88m, arguing that the profit drop was due to a return to nomal size grain crop after the recent years' drought-breaking rains.
GrainCorp's has declared a fully franked interim dividend of 25 cents per share (cps) including a special dividend of 5cps.
According to SMH, grain receivals fell to 9.3 million tonnes from 11.6 million tonnes a year earlier, with export volumes dropping to 4.3 million tonnes from 5 million tonnes. For the full year, grain receivals are expected at 10-10.5 million tonnes.
Despite the declines, GrainCorp managing director and chief executive officer, Alison Watkins, said she was pleased with the results. "Another positive first half performance demonstrates the benefits of GrainCorp’s diversification strategy, as grain receivals returned to more normal levels following two very large harvests," she said.
Watkins added that the company's outlook remains positive.
"FY13 country receivals are expected to be 10-10.5 million tonnes, building on the above average carry-in of 4.3 million tonnes," a GrainCorp statement reads.
"The strong export program should see grain elevations of between 8 – 8.5 million tonnes, which would contribute to the expected network carry-out of approximately 2 million tonnes.
"GrainCorp Malt is expecting sales of around 1.3 million tonnes with an EBITDA margin of $75 – $80 per tonne, while GrainCorp Oils forecasts crushing and refining sales of approximately 530,000 tonnes, in line with expectations."