Ann: Investor Presentation - FY20 Results, page-2

Great how the 'core debt' has reduced from $802 million in 2018-19 to just $37 million in 2019-20. However this is projected to rise somewhat in 2020-21 due to that $15 a tonne payment (capped IIRC) due to the crop production contract insurance GNC took out. The maximum it must pay the insurer is A$70 million (although in a bad year the most it can receive from the insurer is $80m, with an annual $6m premium). The MD Mr Spurway previously said on balance, this is a good arrangement for GNC.

Dividend of seven cents per share is very welcome. Better than bank interest!

Overall, given the small net loss of $16 million, a better result than I'd have expected given in Australia, the winter harvest in 2019-20 was poor. FY20 GNC total grain handled was 14.2 million tonnes, the lowest in five years. Compare it to 33.4 million tonnes in the good season of 2016-17.

Big improvement in statutory net profit after tax to $343 million from a $113 million loss the previous year.

While hardly material, I like how it cut corporate costs by $10 million during the FY 2019-20.

Unlike some other companies GNC didn't receive any JobKeeper assistance, so no 'falsification' of the true picture.

In 2019-20 it had only 4.1 million tonnes of grain received from graingrowers. It has just under 150 grain receival sites in Australi and says GNC receivals are usually 40 to 50 per cent of wheat and sorghum production, so if we do the maths that's a minimum of 8 million tonnes and a maximum of aoound 12.2 million tonnes.

In 2019-20 it exported only 1.3 million tonnes of grain. That figure will rise hugely in 2020-21 as there'll be a large exportable surplus as domestic demand isn't anywhere near sufficient to soak up the good to excellent production and yields coming due to the mostly excellent winter cropping season.

A far different story this year for the winter harvest as evidenced above by all those B-Doubles and trucks at the Coonamble NSW railhead!

Even smaller contributors like oilseeds (e.g. canola) processing should continue to do well given COVID-19 demand for home baking and how it invested in a plant at Numurkah just north of Shepparton, Victoria.

GNC values its stake in UMG at A$4.12 a share but UMG has risen since then.

There is an interesting graph on page 21 suggesting that world population is rising faster than overall worldwide production of wheat, barley, canola and sorghum. Another graph suggests vegetable oil consumption is steadily rising.

It amusingly says for 2020-21 'additional tarpaulins required'.

You don't say!