Graincorp half-year profit falls 75pc to $50 million

A windrower on a canola field in Canowindra
Grain and oilseed markets have normalised after extraordinary years due to the war in Ukraine. -PR Handout Image

Graincorp's half-year profit has dropped by three-quarters as grain prices fell and the agribusiness experienced a decline in east coast production.

Graincorp on Thursday announced a $50 million net profit after tax in the six months to March 31, down from $200 million a year ago.

It delivered $164 million in underlying earnings before interest, tax, depreciation and amortisation, down from $383 million a year ago, as revenue fell 25.5 per cent to $3.38 billion.

Graincorp managing director and chief executive Robert Spurway said it was a resilient result, given that grain and oilseed markets were normalising following extraordinary recent years for the industry.

Russia's 2022 invasion of Ukraine, responsible for a tenth of the world's grain production, caused grain prices to skyrocket.

Mr Spurway said strong grain volumes in southern NSW and Victoria had been offset by below-average conditions in Queensland and northern NSW.

Early indications are favourable for the 2024/25 winter crop, however, with recent rain and healthy soil moisture supporting a strong planting period on the east coast.

The company predicted a full-year underlying profit of $60 million to $80 million on underlying earnings of $250 million to $280 million.

The company declared a 24 cent per share interim dividend, the same as in 2023.

It finished the half-year with $765 million in net debt compared with $1.4 billion a year ago.

Graincorp shares were up 6.2 per cent to $8.57 late on Tuesday morning.