GNC

0.33%

$9.00 graincorp limited

Ann: Investor Presentation - FY20 Results, page-4

First 4 Last

Share
Profile

Follow
karakulahian

842 Posts.

24

12/11/20

09:45

Post #: 48817391
Share

Originally posted by Hopeful9: ↑

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!

Expand

I never understood the difference between a net profit and statutory net profit. Why are there two different figures that are so different?

GNC Price at posting: $3.99 Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

IMA

Issues emerging as Australian companies tackle critical minerals challenge

CXU

Cauldron Energy reports "excellent" uranium assays in latest drill run

RAG

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

TIG

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

SHN

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

A3D

Defence MOU for propulsion systems pushes Aurora Lab shares higher

NWH

NRW Holdings inks $109M deal with BHP for works at Jimblebar

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

There are more pages in this discussion • 37 more messages in this thread...

First 4 Last

Add GNC (ASX) to my watchlist

(20min delay)
Last $9.00		Change 0.030(0.33%)		Mkt cap ! $2.019B

Open	High	Low	Value	Volume
$8.96	$9.01	$8.89	$4.532M	505.3K

Buyers (Bids)

No.	Vol.	Price($)
1	1673	$8.96

Sellers (Offers)

Price($)	Vol.	No.
$9.01	2006	1

View Market Depth

No.	Vol.	Price($)
1	1673	8.960
3	3793	8.950
2	5046	8.940
2	3866	8.930
1	341	8.910

Price($)	Vol.	No.
9.010	2006	1
9.020	7968	6
9.030	7717	4
9.040	2006	1
9.110	459	1

Last trade - 16.10pm 11/10/2024 (20 minute delay)

GNC (ASX) Chart

Ann: Investor Presentation - FY20 Results, page-4

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Issues emerging as Australian companies tackle critical minerals challenge

Cauldron Energy reports "excellent" uranium assays in latest drill run

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Defence MOU for propulsion systems pushes Aurora Lab shares higher

NRW Holdings inks $109M deal with BHP for works at Jimblebar

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Investor Presentation - FY20 Results, page-4

Top Stories

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Issues emerging as Australian companies tackle critical minerals challenge

Cauldron Energy reports "excellent" uranium assays in latest drill run

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Defence MOU for propulsion systems pushes Aurora Lab shares higher

NRW Holdings inks $109M deal with BHP for works at Jimblebar

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News