Namoi HY24 earnings up $7M on pcp

Grain Central, October 25, 2023

Most of the team working at the twin Macintyre gins at Goondiwindi which broke their output record this season. Photo: Namoi Cotton

RECORD volume through its northern gins in recent months has contributed to Namoi Cotton earnings in its half year ending August 31 of $26.9 million, up $7M on the HY23 result.

With ten gins at nine sites, Namoi is Australia’s largest ginner of cotton, and out-turned 1.17 million bales (Mb) in HY24, up from 952,000b in HY23.

In its presentation made today to investors, Namoi said business conditions for HY24 included record volume through northern gins, reduced cottonseed yield, record warehouse shipments, and minimal supply-chain disruptions.

Namoi is forecasting a ginned volume of 1.16Mb in its full year to 29 February 2024, and an increased ginning margin to be partly offset by lower cottonseed earnings.

Namoi’s ginning for this season finished October 16, and contributed to the national crop grown over the 2022-23 summer estimated by ABARES at 5.5Mb.

Namoi gins are spread from Hillston in southern New South Wales to Goondiwindi on the Queensland-NSW border.

The company said production at 3.2Mb from the valleys where it has a ginning presence was down 10pc on 2022, with an above-average result in the north not enough to offset a below-average one in southern valleys.

Ginning optimisation in HY24 included the relocation and consolidation of cotton from North Bourke on the Darling River to the upgraded Trangie gin in the Macquarie Valley, were production was hard hit by flooding.

Namoi increased productivity measured in bales per hour at five of its gins this season compared with similar seasons in 2017 and 2018 for Merah North and Trangie, and similar gins at the three other sites. Source: Namoi Cotton

Cottonseed shipped by Namoi in HY24 at 230,000 tonnes was up 58 percent from the 146,000t shipped in HY23, while cotton lint acquired at 488,000b was down 24pc from 641,000b in the previous corresponding period.

Namoi is also an exporter of containerised seed and grain, and packed 117,000t in HY24, up 69pc from 69,000t in HY23.

Warehouse cotton shipped at 473,000b in HY24 was up 63pc from 290,000b in HY23.

Looking to the crop now being planted that will appear in Namoi’s FY25 results, the company said public water storages were at 94pc of capacity and, despite El Niño conditions, water availability was expected to support above-average production.

Source: Namoi Cotton


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