SYDNEY, AUSTRALIA — GrainCorp underlying net profits after taxes were A$77 million ($49.75 million) in fiscal year 2024, down substantially from A$250 million in fiscal 2023 amid lower grain production volumes, even as the Australian agribusiness crushed record volumes of canola. 

Underlying earnings before income tax, depreciation and amortization (EBITDA) were A$268 million in 2024 compared to A$565 million for the year ended Sept. 30, the company said. 

“We responded well to challenging global market conditions and variable crop production across the East Coast of Australia (ECA),” said Robert Spurway, managing director and chief executive officer of GrainCorp. “Our result demonstrates discipline in operational performance and effective cost management. It was pleasing to deliver another record year in oilseed crush volumes, as well as increased sales volumes across Animal Nutrition and Agri-energy.”

The Nutrition and Energy segment reported EBITDA of A$134 million in 2024, a drop from A$202 million the previous year. GrainCorp’s oilseed processing facilities crushed a record 540,000 tonnes of canola seeds, a jump from 496,000 tonnes in 2023. Crush margins were impacted by lower canola crop volumes, weaker vegetable oil prices, and an improved global soybean crop.

In Animal Nutrition, the acquisition of XF Australia contributed to an increase in sales volumes, with the business performing well since the acquisition was completed in April 2024, GrainCorp said.

“We continued to progress our strategy by expanding our Animal Nutrition portfolio with the acquisition of XF Australia,” Spurway said. “We also progressed our exploration of additional crush capacity, signing an MOU with energy company Ampol and global fund manager IFM Investors, to assess the feasibility of a domestic renewable fuel supply chain.”

In Agribusiness, EBITDA was A$162 million in 2024, slumping from A$351 million in 2023 on lower grain production volumes from East Coast Australia (ECA) and Western Australia. Total grain handled from ECA was 28 million tonnes in 2024, compared to 37.4 million in 2023. Western Australia winter crop production of 14.8 million tonnes was 44% below 2022-23 production and 23% below the preceding five-year average, impacting volumes in its International business, GrainCorp noted.

Lower production in Australia, combined with increased grain production globally, impacted overall margins in Agribusiness in 2024. GrainCorp is the largest grain storage and handling business in ECA and a leading edible oil processor and oilseeds crusher in Australia and New Zealand.

Looking ahead, GrainCorp said the latest Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) winter crop report for ECA was promising with 28.8 million tonnes forecast, and facility receivals supporting this outlook. GrainCorp said it expects to provide earnings guidance at its annual general meeting in February.

“The favorable conditions in northern regions and the earlier start to harvest is reflected in the 5.8 million tonnes of grain received into the GrainCorp network so far this season,” Spurway said. “The year-on-year increase in volume of grain produced on the ECA provides the opportunity for improved export volumes in 2025. However, market dynamics are expected to impact margins, with Australian grain exports competing against a relatively strong supply of grains and oilseeds globally.