The group delivered an EBITDA of $236 million in the first half of 2017 as compared to $134 million in the prior corresponding period
The group delivered an EBITDA of $236 million in the first half of 2017 as compared to $134 million in the prior corresponding period (pcp) and consequently the underlying NPAT rose to $100 million from $32 million pcp. The group expects to reach their full year EBITDA estimate of $385 million-$425 million and underlying NPAT of $130 million-$160 million. Growing Australian grain harvest and better export volumes, coupled with the group’s network efficiency efforts and managing costs have contributed to the decent result during the period. The group reported that average receivals per site rose to 70,000 tons from 40,000 tons of last harvest, driven by their developing a modern, efficient network through Project Regeneration. GNC is also enhancing their sales mix with a better focus on higher margin products. Better canola supply drove their oil supply with lower procurement costs. However, the group continued to face pressure on margins in GrainCorp Foods and unfavorable foreign exchange impact. Moreover, the industry continues to face supply chain disruptions given the industrial dispute affecting the Victorian rail provider and earlier harsh weather.
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