Image source: © Thorren | Megapixl.com

Highlights

  • GrainCorp is an Australia based diversified agribusiness company
  • A share sale agreement was inked by GrainCorp to acquire XF Australia Pty Ltd
  • Dimensional Fund Advisors, L.P. has the maximum stake in the firm with a shareholding of around 6.13%

GrainCorp Limited (ASX: GNC) is an ASX-listed diversified agribusiness firm which operates through two segments – processing and agribusiness. Through its processing segment, the company is engaged in vertically integrated edible oils manufacturing, crushing and distribution. Through its agribusiness unit, the company offers commodities like organics, pulses, oilseeds, coarse grains, wheat, oils, grains and so on.

Recently, the company had signed a share sale agreement to buy XF Australia Pty Ltd (XFA), which provides feed supplement products and nutritional consulting services, for a consideration of AUD 35 million. In the financial year 2023 (FY23), XFA generated EBITDA of AUD 7.6 million.

Financial performance of GNC

In FY23, the company witnessed a 4.6% YoY rise in revenue to AUD 8,229.10 million, 19.6% YoY fall in underlying EBITDA to AUD 565.30 million and 34.2% YoY drop in NPAT to AUD 520 million. During the reported period, EBITDA from the processing business zoomed to AUD 153 million. However, EBITDA from its agribusinesses unit declined to AUD 401 million, compared to AUD 624 million in FY22.

Top 10 shareholders of GNC

The top 10 shareholders of GNC have around 38.65% shareholding in the firm, while the top four have nearly 22.36% shareholding in the company. Dimensional Fund Advisors, L.P. and Australian Retirement Trust have the highest stake in the firm, with a shareholding of ~6.13% and ~6.03%, respectively.

Recent business update

Through an ASX-filing dated 22 December 2023, the company informed 29,696 shares were issued after the exercise of unquoted options on 15 December 2023.

On 15 December 20232, the company notified that its annual general meeting will happen on 14 February 2024.

Outlook

The company anticipates crush volumes to remain high in FY24 while margins are expected to moderate, in comparison to FY23.

Moreover, the company intends to pursue its strategic priorities by examining organic and inorganic growth opportunities and invest in its core business to generate better returns on assets.

Share performance of GNC

GNC shares closed 4.13% up at AUD 7.32 apiece on 9 January 2023. Including today’s gain, GNC’s share price has surged by 8.55% in the past nine months and has recorded a rise of 7.97% in the past three months.

The 52-week high of GNC is AUD 8.205, recorded on 27 July 2023, and the 52-week low is AUD 6.463, recorded on 20 March 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 January 2024. The reference data in this report has been partly sourced from REFINITIV.