GrainCorp, the Australian multinational grains business that owns UK maltster Baird’s Malt and the Saxon Agriculture and Scotgrain grain trading businesses, has revealed a rise in its first half revenues.
The business has reported earnings of Aus$134 million on sales of $2.17 billion in the six months ended March 31st 2016, compared to the $136m and $1.78bn from the same period of the previous year.
The Group’s Malt division saw earnings and revenues rise to $76m and $593m from the $60m and $533m in H1 2015. The company says the division benefited from strong and growing demand for its specialty malts from the burgeoning craft brewing industry in North America, while demand from the global distilling sector was also good. At the same time, the good quality of much of the 2015 malting barley crop led to operational and efficiency savings at its malting plants.
GrainCorp’s Storage, Logistics and Marketing divisions saw growth in the period, but its Oils division, which crushes softseeds, saw lower profitability and sales. The group attributes this to higher oilseed feedstock costs as crushers competed for a smaller global crop, particularly in Europe, which eroded crush margins. There was also less demand for oilseed co-products as a feed ingredient, with dairy farmers under milk price pressure.