GrainCorp Limited (ASX: GNC) has announced the sale of its Canadian joint venture, GrainsConnect Canada, to Parrish & Heimbecker, Limited, following a strategic review prompted by sustained financial underperformance. The GrainsConnect business has been assigned an enterprise value of CA$150 million, calculated on a cash-free and debt-free basis, with a further adjustment to account for net working capital at completion. GrainCorp expects to record a loss of approximately AU$5–10 million on the sale, though the divestment does not affect its through-the-cycle EBITDA target. The move highlights the company’s strategic intent to streamline its asset base and reallocate capital toward initiatives with stronger return potential.
In addition to the asset sale, GrainCorp released an operational update indicating weaker conditions for the 2025–26 winter crop across Australia’s east coast. Lower crop volumes, subdued commodity prices, and near-record global grain and oilseed supply are constraining receivals and margins. FY26 receivals are estimated at 11.0–12.0 million tonnes, down from 13.3 million tonnes in FY25. In response, the company is prioritising cost discipline while maintaining service reliability, with earnings guidance to be issued in February 2026.
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GrainCorp Streamlines Portfolio Amid Challenging Market Conditions
GrainCorp Limited (ASX: GNC) has announced the sale of its Canadian joint venture, GrainsConnect Canada, to Parrish & Heimbecker, Limited, following a strategic review prompted by sustained financial underperformance. The GrainsConnect business has been assigned an enterprise value of CA$150 million, calculated on a cash-free and debt-free basis, with a further adjustment to account for net working capital at completion. GrainCorp expects to record a loss of approximately AU$5–10 million on the sale, though the divestment does not affect its through-the-cycle EBITDA target. The move highlights the company’s strategic intent to streamline its asset base and reallocate capital toward initiatives with stronger return potential.
In addition to the asset sale, GrainCorp released an operational update indicating weaker conditions for the 2025–26 winter crop across Australia’s east coast. Lower crop volumes, subdued commodity prices, and near-record global grain and oilseed supply are constraining receivals and margins. FY26 receivals are estimated at 11.0–12.0 million tonnes, down from 13.3 million tonnes in FY25. In response, the company is prioritising cost discipline while maintaining service reliability, with earnings guidance to be issued in February 2026.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au