The CBH Group has reported a strong year for 2015-16 with a pre-rebate surplus of $110.2 million. Net profit after tax (NPAT) was $49.8 million while rebates to growers totalled $62.7 million.
During the 2015-16 year the co-operative managed a harvest of 13.6 million tonnes – equalling the state’s fourth-largest on record.
CBH also invested $132.4 million into capital and maintenance across the storage and handling network.
CBH Group chairman Wally Newman said it had been a busy year with highlights including the introduction of CBH’s Network Strategy and investment into oat processing in Western Australia.
“The Network Strategy underpins a $750 million investment CBH will make in the storage and handling network over a five year period, ensuring the network operates as efficiently as possible for the benefit of our growers,” Mr Newman said.
“During 2016 we demonstrated our dedication to growth along the supply chain with the announcement of a new oat processing facility in Western Australia and continued to support our local communities through $1.8 million of funding through sponsorships and grants.
“We also conducted an in-depth review of CBH’s structure and governance which was a wonderful opportunity to engage with our members and hear their preferences about the future of CBH, with almost eight out of ten members wanting CBH to remain a co-operative,” Mr Newman said.
CBH Group chief executive officer Dr Andy Crane said the pre-rebate surplus result of $110.2 million was a positive outcome and very much due to another above average harvest.
“It’s important to note that we were able to provide $62.7 million of rebates to growers from the 2015-16 financial year, which is a pleasing result,” Dr Crane said.
“Our Marketing and Trading division also performed well despite a challenging global trading environment; it was able to provide growers a $1.20 per tonne rebate for tonnes sold to the co-operative, which forms part of the total $4.20 rebate.
“Another initiative we have put in place over the past year is to further drive the efficiency of our business. We have been able to achieve recurrent annual savings of $16 million across the business and we will look to further reduce costs by $10 million over the coming year.”
Dr Crane said the co-operative’s investments continue to be an important part of CBH’s ability to deliver more value to growers.
“It’s been a tough year for Interflour, our Asian flour milling operation. Despite such challenges, it has still been able to grow and diversify,” Dr Crane said.
“We’re looking forward to the opening of the InterMalt malting facility in Vietnam in 2017 as well as completion of a new flour mill in the Philippines.”