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UPDATE 1-GrainCorp annual profit drops after smaller Australian crop

Published 16/11/2016, 09:47 am
© Reuters.  UPDATE 1-GrainCorp annual profit drops after smaller Australian crop
GNC
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(Adds earlier guidance, dividend)

SYDNEY, Nov 16 (Reuters) - Australia's largest listed bulk grain handler GrainCorp Ltd GNC.AX said on Wednesday annual net profit fell 3.7 percent, at the upper end of its guidance, as it contended with a smaller crop and lower volumes.

The company said net profit came in at A$30.9 million ($23.33 million) for the year to Sept. 30, down from A$32 million the previous year.

Underlying net profit, which does not include one-off items like restructuring costs, rose 18.4 percent to A$52.7 million. In February, GrainCorp said it expected annual underlying profit between A$40 million and A$55 million. diversified business model has allowed us to deliver a solid performance in the face of some significant external headwinds," GrainCorp Chief Executive Officer Mark Palmquist said in a statement.

"These challenges have largely affected the grains and oils businesses, however they have been partially offset by another strong performance from GrainCorp Malt."

Palmquist did not give earnings guidance for fiscal 2017, but said he expects "a return to a stronger year", thanks to higher volumes and lower overhead.

GrainCorp declared a final dividend of 3.5 Australian cents, up from 2.5 cents the previous year. ($1 = 1.3245 Australian dollars)

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