A major agribusiness has reported a full-year loss and cut its dividend payout as a global oversupply of grain continues to hurt its bottom line.
GrainCorp, which has the largest grain storage, receiving, and logistics network on the east coast, made a net loss of $10.1 million in fiscal 2026.
It’s a massive slump from the $39.9 million profit it made in the year before.
Chief executive Robert Spurway, who’s standing down after almost seven years with Graincorp, said the global grain environment was challenging due to an oversupply driven by favourable growing conditions in key areas.
That’s meant prices are lower than long-term averages, and Australian grain is competing with grain from all over the globe.
“We tightly managed costs, maintained a strong balance sheet and continued to invest in areas that diversify our earnings base and support future growth,” he said on Thursday.
“GrainCorp has continued to demonstrate its ability to perform through changing market conditions.”
But it did hit the middle of its underlying earnings guidance with a profit of $223 million, before interest, tax, depreciation and amortisation.
The underlying result for the year ended September 30 excluded business transformation costs of $26 million and $15 million from the sale of its GrainsConnect Canada business.
Underlying earnings for the agribusiness unit fell to $156 million, from $218 million, reflecting lower grain margins.
Its nutrition and energy business, which supplies ingredients and oils, livestock feed additives and renewable fuel inputs, generated underlying earnings of $95 million, down from $117 million.
“Human nutrition earnings were lower, reflecting softer customer demand for bulk edible oils,” GrainCorp said.
It will pay a final dividend of 14 cents to take the total for the year to 28 cents, down from 48 cents in the previous year.
Mr Spurway will continue in his role until GrainCorp confirms its new chief executive.
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