GrainCorp (ASX:GNC), the major east coast grain handler and shipper, has confirmed that it is facing a dramatic drop in first-half earnings for the six months to March 31.
GNC informed the ASX on Monday that it expected to report an underlying EBITDA of $164 million when it reports its interim results on May 16 – down more than 50% from the $383 million reported a year ago.
Additionally, net profit after tax will only come in at $57 million, down more than 75% from the $200 million reported a year ago.
GNC stated that the final figures are still dependent on the final details of the accounts and the auditor's review.
CEO Robert Spurway said in the ASX filing that the company’s "preliminary 1H24 result displays resilience as grain and oilseed markets normalize following three outstanding years for the industry.
"As expected, we have experienced a decline in overall volumes handled across East Coast Australia (ECA) and lower end-to-end supply chain and crush margins relative to 1H23.
“Strong volumes in Southern NSW and Victoria have been offset by below-average conditions in Queensland and Northern NSW.
