GrainCorp will pay an unchanged interim dividend of 7.5 cents a share after reporting another weak half year period.
Australia’s biggest agribusiness posted a 32.5% slide in half-year profit thanks to a “subdued market” and dry weather.
Net profit fell to $20.4 million in the six months to March 31, compared with $30.2 million in the first half of 2014-15.
Revenue meanwhile firmed 4.8% to $2.07 billion.
The result included $7.2 million in restructuring costs. Underlying net profit was $32 million.
Chief executive Mark Palmquist said the result was credible given challenging market conditions.
“GrainCorp has performed well considering the subdued market and relatively expensive price of eastern Australian grain in global markets for the half,” he said in yesterday’s statement.
"In relation to seasonal conditions in eastern Australia, some good sowing rains have been reported in many grain growing areas over the past week or so.
"This follows an extended drier and warmer period in early autumn. While there remains a long way to go, the rains have been very welcome at this point in the production cycle,” he said.
Underlying profit slumped 8.5% to $32 million and its pre-tax earnings edged down $2 million to $134 million, and the company says it is on track to deliver its full-year guidance.
GrainCorp is expecting pre-tax earnings of $240 million – $270 million and underlying profit of between $40 million and $55 million for the 12 months to September 30.
“We are pleased to report solid progress on our major capital projects, such as the significant expansion of our Brisbane bulk liquid storage capability. These projects will embed improved performance across our businesses as they are brought online,” Mr Palmquist said.
“In the immediate term however, global trading conditions continue to weigh on the Australian grains sector, particularly affecting oilseed crush margins and grain exports from the eastern states.”
The firm said its oils division and feeds and terminals operation in New Zealand had endured the roughest period, but it expected “cyclical factors” driving the weaker results to “improve over time”.
“Our new refining and packaging infrastructure delivers significant efficiencies and will commence with a modest contribution to earnings uplift in the second half,” Mr Palmquist said.
GrainCorp shares eased 2% to $7.83.
