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General Information

Graincorp Limited
GNC
http://www.graincorp.com.au
Agricultural Products
2,167
229

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$9.46 $9.46 $9.56 $9.43 $9.47 801241 $0.01 ( 0.11% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Strong Sell
26/05/2015
3

Company Overview

Business Description
GrainCorp Limited (GNC) is an integrated grain business cross three grain activities: storage & logistics, marketing and processing. GNC supplies grain and processed grain products to customers in domestic and international markets, with a focus on wheat, barley and canola.
Strategy Analysis
GNC's strategy is focused on becoming a fully integrated agribusiness creating and capturing value along the grain supply chain. In storage and logistics the key objective is to leverage greater value from its extensive grain storage and handling facilities through supply chain efficiencies, better servicing the customer base and expansion of non-grain commodity activity. GNC continues to grow its marketing business both domestically and internationally and seeks to build a strong presence in international grain trading. In malt GNC seeks to improve efficiency, better leverage group marketing and procurement capabilities and build its capability in the fast growing craft brew market. Since acquisition of the malt business it has made some bolt-on acquisitions that have expanded capacity and further such acquisitions are a possibility. The oils business also offers further opportunities for both organic growth and bolt-on acquisitions. In the Allied Mills joint venture the strategy is to leverage value from the existing milling operations and pursue further downstream opportunities through expansion of its food ingredients product range. GNC has a growth and efficiency initiative in place whereby it targets $110m in additional EBITDA benefits by the end of FY16. The gains are derived from changes to the way it does business, asset optimisation and increased port flexibility. Graincorp reported NPAT up 19.4% to $204.9m for the year ended 30 September 2012. Revenues from ordinary activities were $3.33bn, up 20% from last year, reflecting strong volumes across the group coupled with barley gains in Malt and a growing global reach in Marketing. Total up-country receivals during the year were 12.2Mt (2011: 14.9Mt) with 10.6Mt exported through GrainCorp Ports (2011: 8.1Mt). Grain in storage at the beginning of the year was 6.0Mt, an increase from 2.6Mt in the previous year. Grain in storage at the end of the year is 4.3Mt. Diluted EPS was 102.0 cents compared to 85.9 cents last year. Net operating cash flow was $140.0m compared to $304.8m last year. The final dividend declared was 20 cents, taking the full year dividend to 65 cents compared with 55 cents last year.

Financial Summary

Year to Sep NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 116.3 50.8 125.8% 18.6 27.9 3.0% 100.0%
2015 F 51.5 22.5 -54.0% 42.1 12.4 1.3% 100.0%
2014 A 111.9 48.9 -36.6% 18.6 20.0 2.2% 100.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Graincorp (GNC) $2,170M -0.4578 -0.4345 1.1496 22.9207 40.5301 18.8544 2.11% 1.31% 2.76%
Ridley Corp (RIC) $368M 0.5912 -0.0097 0.1191 19.3053 19.4943 17.4198 0.00% 3.35% 3.77%
Select Harvests (SHV) $744M 0.1922 0.4207 -0.1227 21.3525 15.0296 17.1325 1.92% 2.50% 1.92%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.66 32.10 1.24 3.12
Market 1.02 17.00 1.33 1.57
Sector 0.67 19.60 1.33 1.34

Directors

Name Position Start Date
Mr Mark Palmquist Chief Executive Officer, Managing Director 01/10/2014
Mr Donald (Don) C Taylor Non-Executive Chairman 01/10/2003
Mr Peter John Housden Non-Executive Director 17/10/2008
Mr Donald Gordon McGauchie Non-Executive Director 03/10/2000
Ms Barbara June Gibson Non-Executive Director 03/03/2011
Mr David Bruce Trebeck Non-Executive Director 27/02/2002
Mr Daniel James Mangelsdorf Non-Executive Director 17/02/2005
Mr Simon Lucien Tregoning Non-Executive Director 02/12/2008
Ms Rebecca Dee-Bradbury Non-Executive Director 29/09/2014

Management

Name Position
Gregory Greer Company Secretary
Alister Bell Group Chief Financial Officer
Betty Ivanoff Group General Counsel,Joint Company Secretary
Kluas Pamminger Group General Manager - Graincorp Marketing
Sam Tanish Group General Manager - Graincorp Oils
Neil Johns Group General Manager - Graincorp Storage & Logistics
Greg Friberg President and CEO - Graincorp Malt

Substantial Shareholders

Holding Name
45,420,054 (19.90%) ADM Group Company
25,580,893 (11.20%) Ellerston Capital Limited and its associates
23,651,190 (10.30%) The Goldman Sachs Group Inc
11,563,332 (5.10%) Norges Bank
11,507,007 (5%) Perpetual Limited and subsidiaries

Calendar of Events

Date Event
12 May 2016 Report (Interim)
12 November 2015 Report (Prelim)
12 November 2015 Report (Annual)
17 July 2015 Div Pay Date
03 July 2015 Books Close
01 July 2015 Div Ex Date
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