Business Description:
GrainCorp Limited (GNC) provides handling, storage, marketing and logistics services to the grain growing industry. GNC is also a large commercial malt producer producing over one million tonnes annually. GNC owns a 60% stake in Allied Mills, a manufacturer and distributor of bakery premixes and flour.

Strategy Analysis:
GNC's strategy is focused on becoming a fully integrated agribusiness and expanding its grain storage and handling facilities. The company is pursuing an organic and acquisitive growth strategy. GNC continues to streamline costs and diversify its earnings base in order to reduce its reliance on income generated based on the total volume of crops handled. The expansion into malt adds both vertical and geographic diversification. The company continues the marketing expansion both domestically and internationally and seeks to build a strong presence in international grain trading. Graincorp reported NPAT of $171.6m for the year ended 30 September 2011 compared to a profit after tax of $80.2m for the previous year. EBITDA increased from $212.2m to $349.6m. The comparative period included the acquisition of the Malt business from 13 November 2009. Revenues from ordinary activities were $2.78bn, up 39.5% from last year, reflecting higher Eastern Australian grain harvest volumes and associated revenues from Country and Logistics, Ports and Marketing. Diluted EPS was 86.6 cents compared to 39.4 cents last year. Net operating cash flow was $304.8m compared to $109.3m last year. The final dividend declared was 15 cents, along with a special dividend of 20 cents, taking the full year dividend to 55 cents compared with 30 cents last year.