ABB Grain - ABB Grain`s full year results for 2008
2008-11-25 11:28:00+10:00
MEDIA RELEASE Media Statement No: 1334 For distribution: from ABB Grain Ltd 25 November 2008. ABB Grain has issued similar announcements 62 times before, most recently about 0 minutes ago on Friday 26 September 2008. The announcement 'ABB Grain`s full year results for 2008' was issued to the ASX on Tuesday 25 November 2008. [Notice Type: Other - not one of the above]
2008-11-25 11:28:00+10:00
MEDIA RELEASE Media Statement No: 1334 For distribution: from ABB Grain Ltd 25 November 2008. ABB Grain has issued similar announcements 62 times before, most recently about 0 minutes ago on Friday 26 September 2008. The announcement 'ABB Grain`s full year results for 2008' was issued to the ASX on Tuesday 25 November 2008. [Notice Type: Other - not one of the above]
ABB Grain`s full year results for 2008
Tuesday 25 Nov 2008
MEDIA RELEASE
Media Statement No: 1334 For distribution:
from ABB Grain Ltd
25 November 2008.
ABB produces robust result and improved balance sheet
Leading Australian agricultural company, ABB Grain Ltd, has recorded a $48.8 million full-year net profit after tax (NPAT) with strong contributions from all business sectors. The strong result for the year ending September 30 compares very favourably with the 2007 full-year net profit of $7.3 million. ABB Grain today also announced it would pay a final dividend of 14 cents per share to shareholders on 7 January 2009, with a record date of 17 December 2008. This brings the total dividends for the year to 21 cents per share. ABB’s existing dividend reinvestment plan will continue to apply with a 2.5% discount to the weighted average price of ABB shares sold on the ASX in the five business days immediately before, including, and after the record date. ABB Grain managing director, Michael Iwaniw, said the 2008 full-year result was at the upper end of a revised profit guidance issued to the market on October 17. That guidance forecast an NPAT of between $47m and $49m. “This result further supports the ABB strategy of diversification, growth and development of an integrated business model,” he said. “The full-year profit is a pleasing result, delivered despite a below average harvest in 2007. “ABB has been able to establish a strong balance sheet with reductions in working capital along with further reduction in its cost base. Balance sheet management remains a priority of ABB’s and we have reduced the company gearing to 25%, which was 47% at the half-year reporting period.” ABB’s grain marketing division lifted its earnings before interest and income tax (EBIT) to $65.9m, or a 539% increase on last year’s performance. “The strong customer relationship that our business has developed with clients in Australia and overseas has been tremendously beneficial in contributing to ABB’s full-year result,” Mr Iwaniw said. “This relationship will continue to serve ABB well as we enter the deregulated wheat market. “We are also exporting grain from Ukraine as a result of our joint venture with Soufflet, and have seen significant New Zealand proteins growth during the year.
“Our New Zealand storage facilities in New Plymouth and, soon, Tauranga have given us enormous flexibility in New Zealand assisting with the growth of the protein market during 2008.” The National Supply Chain division also recorded a 114% rise in earnings contributing $15.8m (EBIT) while ABB’s malting division – Joe White Maltings – contributed $35.8m or a 21% lift on 2007’s performance. “A new pricing structure was introduced for Supply Chain during 2008 to assist in stabilising earnings in low volume years,” Mr Iwaniw said. “We have been optimising Joe White’s performance, ensuring our eight malt houses around Australia are working at full capacity and the logistical support our maltster has been given, from storage and handling through to marketing, has enabled it to perform to its maximum potential. “And our Rural Services division has experienced considerable growth to deliver a sound performance in its first full year of operation.”
Looking ahead, Mr Iwaniw said it was extremely disappointing that, for the third year in the past four, ABB was again contending with a below average harvest. “However, we’re becoming very adept at managing the challenges that are thrown up by disappointing seasons,” he said. “The implementation of our diversification strategy and innovative management of our storage and handling sites during below-average seasons will translate into ABB being able to achieve a materially better profit next year even though harvest receivals will again be below normal expectations. “With regard to further expansion, ABB will continue to implement its planned strategies and is well placed to take advantage of opportunities as they arise.”
ABB Grain intends to issue its profit guidance for 2009 at its annual general meeting on 25 February next year. Below is a summary of the full year results.
Revenue from operations Business segment Supply chain Grain marketing Malt manufacture Rural services Other Total 2008 $million 140.8 1,695.5 321.3 332.5 (251.9) 2,238.2 2007 $million 100.2 1,168.6 250.5 164.6 (167.2) 1,516.7 Earnings before interest and income tax 2008 $million 15.8 65.9 35.8 12.0 (19.8) 109.7 2007 $million 7.4 10.3 29.5 5.2 (17.3) 35.1 Profit before income tax 2008 $million 16.4 35.1 34.3 3.9 (18.8) 70.9 2007 $million 7.5 (10.4) 30.0 1.0 (17.2) 10.9
Income tax expense Net profit attributable to the members of ABB Grain Ltd
(22.1) 48.8
(3.6) 7.3
Issued for ABB by Kenn Pearce, Senior Corporate Journalist, (08) 8304 5105, mobile 0419 232 230, fax. (08) 8231 1249, Email: kenn.pearce@abb.com.au
Tuesday 25 Nov 2008
MEDIA RELEASE
Media Statement No: 1334 For distribution:
from ABB Grain Ltd
25 November 2008.
ABB produces robust result and improved balance sheet
Leading Australian agricultural company, ABB Grain Ltd, has recorded a $48.8 million full-year net profit after tax (NPAT) with strong contributions from all business sectors. The strong result for the year ending September 30 compares very favourably with the 2007 full-year net profit of $7.3 million. ABB Grain today also announced it would pay a final dividend of 14 cents per share to shareholders on 7 January 2009, with a record date of 17 December 2008. This brings the total dividends for the year to 21 cents per share. ABB’s existing dividend reinvestment plan will continue to apply with a 2.5% discount to the weighted average price of ABB shares sold on the ASX in the five business days immediately before, including, and after the record date. ABB Grain managing director, Michael Iwaniw, said the 2008 full-year result was at the upper end of a revised profit guidance issued to the market on October 17. That guidance forecast an NPAT of between $47m and $49m. “This result further supports the ABB strategy of diversification, growth and development of an integrated business model,” he said. “The full-year profit is a pleasing result, delivered despite a below average harvest in 2007. “ABB has been able to establish a strong balance sheet with reductions in working capital along with further reduction in its cost base. Balance sheet management remains a priority of ABB’s and we have reduced the company gearing to 25%, which was 47% at the half-year reporting period.” ABB’s grain marketing division lifted its earnings before interest and income tax (EBIT) to $65.9m, or a 539% increase on last year’s performance. “The strong customer relationship that our business has developed with clients in Australia and overseas has been tremendously beneficial in contributing to ABB’s full-year result,” Mr Iwaniw said. “This relationship will continue to serve ABB well as we enter the deregulated wheat market. “We are also exporting grain from Ukraine as a result of our joint venture with Soufflet, and have seen significant New Zealand proteins growth during the year.
“Our New Zealand storage facilities in New Plymouth and, soon, Tauranga have given us enormous flexibility in New Zealand assisting with the growth of the protein market during 2008.” The National Supply Chain division also recorded a 114% rise in earnings contributing $15.8m (EBIT) while ABB’s malting division – Joe White Maltings – contributed $35.8m or a 21% lift on 2007’s performance. “A new pricing structure was introduced for Supply Chain during 2008 to assist in stabilising earnings in low volume years,” Mr Iwaniw said. “We have been optimising Joe White’s performance, ensuring our eight malt houses around Australia are working at full capacity and the logistical support our maltster has been given, from storage and handling through to marketing, has enabled it to perform to its maximum potential. “And our Rural Services division has experienced considerable growth to deliver a sound performance in its first full year of operation.”
Looking ahead, Mr Iwaniw said it was extremely disappointing that, for the third year in the past four, ABB was again contending with a below average harvest. “However, we’re becoming very adept at managing the challenges that are thrown up by disappointing seasons,” he said. “The implementation of our diversification strategy and innovative management of our storage and handling sites during below-average seasons will translate into ABB being able to achieve a materially better profit next year even though harvest receivals will again be below normal expectations. “With regard to further expansion, ABB will continue to implement its planned strategies and is well placed to take advantage of opportunities as they arise.”
ABB Grain intends to issue its profit guidance for 2009 at its annual general meeting on 25 February next year. Below is a summary of the full year results.
Revenue from operations Business segment Supply chain Grain marketing Malt manufacture Rural services Other Total 2008 $million 140.8 1,695.5 321.3 332.5 (251.9) 2,238.2 2007 $million 100.2 1,168.6 250.5 164.6 (167.2) 1,516.7 Earnings before interest and income tax 2008 $million 15.8 65.9 35.8 12.0 (19.8) 109.7 2007 $million 7.4 10.3 29.5 5.2 (17.3) 35.1 Profit before income tax 2008 $million 16.4 35.1 34.3 3.9 (18.8) 70.9 2007 $million 7.5 (10.4) 30.0 1.0 (17.2) 10.9
Income tax expense Net profit attributable to the members of ABB Grain Ltd
(22.1) 48.8
(3.6) 7.3
Issued for ABB by Kenn Pearce, Senior Corporate Journalist, (08) 8304 5105, mobile 0419 232 230, fax. (08) 8231 1249, Email: kenn.pearce@abb.com.au
