GrainCorp full-year profit dips

Grain handler warns of challenging conditions for growers, still working on ADM takeover bid, posts lift in revenue.

GrainCorp (GNC) has warned of challenging conditions for many growers but says it is on track to deliver the previously announced $110 million in incremental underlying uplift by the end of fiscal 2016, as it posted a dip in full-year profit.

GrainCorp's net full-year profit attributable to members was $140.9 million, a 31.2 per cent drop compared with $204.9 million in the prior year.

The grain handler said its profit was affected by significant items totalling $33.6 million.

The significant items included $12.8 million for advisors to support the board in its response to Archer Daniels Midland Company's takeover proposal, with the target saying it continues to work with the suitor to progress the offer.

Significant items also included $18.4 million in GrainCorp Oils acquisition and integration costs and $2.4 million in GrainCorp Malt acquisition trade tax and associated income.

Revenue was $4.46 billion, a 34 per cent increase compared with $3.33 billion in the previous corresponding period.

The group will pay a final dividend of 20 cents per share, fully franked, which combined with an interim dividend of 20 cents and a special dividend of 5 cents takes the total dividend to 45 cents, fully franked.

Chief executive officer Alison Watkins said the results reflect strong grain volumes with above average grain exports and carry-in of 4.3 million tonnes.

Drought in Queensland and northern NSW has affected yields in the 2013-14 winter harvest, although crops further south look larger than average, she said.

In fiscal 2014, the group expects a below average carry-in of 2.3 million tonnes, saying its storage and logistics division's margins might be hit by the crop profile, with production concentrated in southern New South Wales and Victoria.