GrainCorp Limited (ASX: GNC)
GrainCorp Delivers Resilient First Half - Dividend Intact, Outlook Upgraded
Key Numbers to Know:
- 1H25 net profit after tax rose to $58.1 million, up 17% YoY.
- Declared a 24cps fully franked dividend, including a 10cps special payout.
- FY25 guidance now sits at $285–325 million EBITDA and $65–95 million NPAT.
From Paddock to Profit – Inside the Half-Year Result
GrainCorp Limited (ASX: GNC), Australia’s leading grain and edible oils supply chain operator, delivered a robust first-half performance. For the period ending 31 March 2025, NPAT climbed to $58.1 million, up from $49.6 million a year ago, while underlying NPAT hit $69 million. Total revenue rose sharply to $4.09 billion, up 21% year-over-year, reflecting strong volume and margin performance.
One of the best long term dividend stocks, its share holders were rewarded with a 24-cent fully franked interim dividend, comprising 14cps ordinary and 10cps special dividend, payable on 17 July 2025. This marks consistent capital discipline in a capital-intensive sector.
The Agribusiness division was the star performer, thanks to higher grain receivals in Northern NSW and Queensland. EBITDA for the segment rose to $141 million (vs $101 million in 1H24). Meanwhile, the Energy and Nutrition business remained stable, posting $75 million EBITDA, supported by steady demand in edible oils and stockfeed.
Recent Breakthroughs - From Silos to Sustainability
FY25 has been a breakout period for innovation and execution. GrainCorp launched “GrainCorp Next”, a long-term plan to build a low-carbon grain and oilseed supply chain for Australia. The initiative is tied to its commitment to the Science-Based Target Initiative (SBTi), where near and long-term emissions targets have been formally submitted.
Another leap forward came through a Memorandum of Understanding with IFM Investors and Ampol, aiming to develop a domestic renewable fuels supply chain. The feasibility study for new crush capacity supporting low-carbon fuel feedstock is actively progressing, with FEED (Front-End Engineering Design) targeted for 2026.
GrainCorp’s Business Transformation program, launched in FY24, is also in motion targeting $20-30 million in annual EBITDA uplift through process and systems efficiency. Investments in AgTech startups like BioScout and Peptobiotics underline a digital push to drive precision, sustainability, and long-term profitability.
The Bottom Line - Execution, Expansion and ESG in Sync
GrainCorp has evolved beyond being just a bulk handler it’s now a full-scale agri supply chain operator with upside across nutrition, infrastructure, and sustainability. With core cash of $337 million, a clear strategic framework, and diversified earnings across grain, oilseed and energy, the business is positioned to manage seasonal variability while unlocking new value streams.
Its recent announcements aren’t just window dressing they reflect genuine shifts in future earnings potential. From growing margin in bulk materials and renewable fuel feedstock to embedding digital tools and emissions tracking, GrainCorp is sharpening both its edge and its ESG credentials.
As the agri-cycle turns, it’s clear this is a company building strength from the soil up.
The Reject Shop (ASX: TRS)
The Reject Shop Set for $6.68 Cash Takeover Backed by Board and Expert
Key Takeaways:
- Dollarama’s proposed buyout values TRS at $6.68 per share, reflecting a 112% premium to its pre-deal market price.
- A fully franked $0.77 special dividend is included, offering tax benefits to eligible shareholders.
- The deal has received full support from the Board, major shareholder Kin Group, and an Independent Expert.
What’s Happening at TRS?
The Reject Shop (ASX: TRS) is preparing to be acquired by Canadian discount retailer Dollarama through a scheme of arrangement. Shareholders are set to receive $6.68 per share, made up of $5.91 in base consideration and a $0.77 fully franked special dividend, subject to court approval. This deal, announced in late March 2025, represents a 112% premium to the closing share price of $3.15 before the announcement.
From a performance standpoint, TRS reported $866 million in revenue in the 12 months to December 2024. On a pre-AASB 16 basis, earnings reached $21.2 million EBITDA and $8.5 million EBIT. These results underpin the acquisition’s valuation at a multiple of 8.9x EBITDA and 22.2x EBIT, placing it competitively among retail sector deals.
The Board has unanimously recommended the offer, supported by an Independent Expert who valued the shares between $4.80 and $5.24. Major shareholder Kin Group, holding 20.7%, has also indicated its intention to vote in favour, provided no superior proposal emerges.
What Comes Next?
Shareholders will vote on the proposal on 23 June 2025, followed by a second court hearing on 30 June. If approved, TRS shares will be suspended from trading on 1 July, and payments including the $0.77 special dividend and the $5.91 cash scheme consideration are expected by 22 July 2025.
The Bottom Line
The Reject Shop deal offers a clean and favourable outcome for shareholders. The acquisition comes at a strong premium and reflects confidence in the business's steady operating base, while removing the risks associated with its capital-light, low-margin model. The full-cash nature of the offer, along with franking benefits, enhances after-tax returns.
Dollarama brings the scale and systems needed to lift operational efficiency, but for existing investors, the decision is simpler: lock in value at a premium with minimal execution risk. With institutional backing and clear timelines, this looks like a well-managed exit for all parties involved.
(Source: Company Announcements)
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