Tag: GNC

Separating out GrainCorp’s malt business has its appeal, brokers acknowledge, but the devil is likely to be in the detail for the remaining integrated grains & edible oils.

Drought claims another corporate victim. Grain group, GrainCorp is to split itself in half as the company’s core business continues to be assaulted by the bitter drought across much of Eastern Australia.

GrainCorp shares jumped 34% yesterday after it revealed it had received an unwanted pre-Christmas approach from a bottom finishing unknown private equity investor.

As forecast in September, GrainCorp saw a big fall in profit that was softened by a solid performance by its barley and malting businesses which continue to ride the global craft beer boom.

Americans are being driven to drink – more craft beer and spirits like bourbon whisky – and as a result GrainCorp says it is enough to more than offset the impact of the East Coast drought on its business.

Grains handler and maltster GrainCorp’s shares fell nearly 5% yesterday despite the company reporting a quadrupling of full-year profit and a sharp rise in dividend.

No wonder GrainCorp shares have slid in the past month – the Australian wheat harvest is being hit by record dry weather, the huge American crop is under pressure and not even rising prices in the world’s biggest grains market – Chicago can offset the rising concern of investors.

There’s nothing like a good grain harvest to juice up the revenue and profit performance of Eastern Australia’s biggest grains handler GrainCorp (GNC), as yesterday’s tripling in interim profit and doubling of dividend confirms.

Graincorp’s full-year profit dipped almost 4% to $30.9 million as its core grains business was impacted by below-average production in eastern Australia, a result that disguised another strong performance from its malt barley business.

GrainCorp will pay an unchanged interim dividend of 7.5 cents a share after reporting another weak half year period.

The worsening weather outlook and El Nino fears which has compounded an already big dry across parts of eastern Australia, have had a major impact on the profits of GrainCorp (GNC), the country’s biggest listed agribusiness.

As expected, GrainCorp (GNC) has reported a sharp drop in half-year profit and slashed interim dividend by 50% because of the drought in Eastern Australia, and without the impact of the looming El Nino event.

Yesterday’s full year results from GrainCorp (GNC), the country’s biggest listed agribusiness, again gives us an opportunity to study dividend policy as an indicator of board thinking about the outlook.

GrainCorp (GNC) yesterday kicked off a three year $200 million revamp of its grain handling and transport facilities across the eastern states that will see 80 jobs lost and the company slash the number of its grain receival sites.

GrainCorp (GNC) shares edged higher yesterday despite a weak profit for the six months to March.

GrainCorp’s (GNC) share price was trashed this morning – down by nearly 30% in pre trading, slashing the company’s value by around $900 million, based on the ADM takeover price of $13.20 a share.

The move on Canadian grain group Viterra sent shares in Graincorp, our last independent grain group, up sharply yesterday.

Shares in grain exporter and bulk handler GrainCorp jumped more than 10% at one stage yesterday after it reported a 66% surge in half year profit to $88 million.

GrainCorp shares eased 7 cents to $6.29 yesterday after investors greeted a return to a full year profit rather warily.

Like ABB Grain earlier in the week, GrainCorp has done a bit better than you would believe, given the undeniable impact of the drought and the downturn in grain availability.