You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:
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.
Nick Swales, Regional Director, Newcastle Office, Rathbones 27/10/2014 |
â€śIf you want to have a better performance than the crowd, you must do things differently from the crowd.â€ť Sir John Templeton.
Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 |
Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.
Carl Richards, director of investor education at the BAM Alliance 17/10/2014 |
â€śAs odd as it may sound, the sooner you start treating your investments like you treat life, the happier youâ€™ll be with the outcome.â€ť
William H. Gross, Janus Capital Group 16/10/2014 |
â€śFinancial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding â€śminusâ€ť 10 basis points.â€ť
CMC Markets 8/10/2014 |
Share market indices around the globe are breaking down. While analysts cast around for reasons, itâ€™s clear that a time factor is in play. Simply put, many investors â€śfeelâ€ť a correction is overdue. How low could it go?
IMPORTANT: This information has been prepared without taking into account your objectives, financial situation or needs and you should consider if the information is appropriate for you before making an investment decision. Neither InvestSMART Financial Services Pty Ltd nor any of its Related Companies make any recommendations as to the merits of any investment opportunity referred to in its emails or its related websites. Product disclosure statements for financial products offered through InvestSMART can be downloaded from this website or obtained by contacting 1300 880 160. You should consider the product disclosure statement before making a decision about the product. All indications of performance returns are historical and can not be relied upon as an indicator for future performance.