Ann: GNC announces strong 1H21 result and FY21 earnings guidance, page-4

It's the first time for two years that GNC has paid consecutive dividends (i.e. at six monthly intervals).

15 cents for a final followed by an interim is nothing to be sneezed at.

There is a warning in the detailed investor presentation that due to accumulated tax losses, GNC expects 'a period' (unspecified) of unfranked dividends. Retail investors at one level won't like this but it's way better than 'no dividends'.

The GNC result is harder than some other companies' to interpret due to the 'smoothing' effect of the crop protection contract insurance with White Rock, which sees GNC making the maximum $70 million payment to the insurer given the bumper winter harvest.

The maximum expected exports of eight million tonnes in FY 21 will, if achieved, be higher than 2016-17.

The upgrade to expected FY 21 net profit is not new information, but great to have again confirmed.

That overall receivals rose from 3.8m to 14.5 million tonnes says it all.

Oilseeds is a low profile business. Its revenue rise of $14m to $320m is above CPI so that's positive. The MD Mr Spurway says demand for margarines and so on 'remains elevated' which may reflect more of us not working in offices five days a week, every week, and having sandwiches/rolls at home.

Agree that the whole ASX may be down again today, so it's unlikely GNC's price will rise on this result.

I hope ABARE's initial crop forecast is not way too optimistic for winter 2021 given relatively dry Victoria, but there's a map GNC provides showing that winter rain forecasts are positive for much of southeastern Australia. It has to turn into reality though.

As one would expect, GNC's research such as that seaweed feed ('FutureFeed') continues to be a minor drag. Again, I hope these sorts of R & D initiatives haven't been overhyped, given the seaweed one isn't commercialised yet as I understand it.