Loading a cargo at GrainCorp’s Port Kembla terminal. File photo: GrainCorp

GRAINCORP has confirmed that 80 roles have been impacted following a strategic review of its agribusiness operating model.

This was higher than the figures disclosed last month, which were between 70-75 jobs across corporate and operational positions.

In a statement lodged with the ASX, GrainCorp said the operating model changes were now “fully implemented” across east coast Australia (ECA).

“GrainCorp has completed a comprehensive review of its Agribusiness operating model with a focus on simplifying decision-making, improving coordination across the network and positioning the business for future growth,” the statement said.

“The review identified opportunities to reduce duplication and strengthen alignment across GrainCorp’s integrated ECA network and corporate support functions.

“The resulting operating model changes have been fully implemented and have impacted approximately 80 roles.

“The changes are expected to improve execution and lift safety, customer service and financial performance outcomes.

“GrainCorp has incurred one-off restructuring costs of $5 million in FY26.

“We will continue to identify and deliver cost savings as part of our ongoing commitment to efficiency and lifting through the-cycle earnings over time.”

Business, systems transformation

The agribusiness said the group-wide Business Transformation Program was “on track to deliver run-rate benefits of $12M by the end of FY26 which is above the top end of our previously announced commitment”.

“This builds momentum towards the targeted uplift of $20-30M in through-the-cycle EBITDA by the end of FY28.”

This program is “an ongoing group-wide initiative designed to unlock efficiencies and drive returns across our integrated value chain”.

GrainCorp is having less success with its systems transformation program, a project to address an end-of-life version of its SAP software.

Release 1 of the program relates to the Nutrition and Energy segment and is “well progressed” but “late-stage testing has resulted in a decision to extend the deployment timeline”.

“Deployment of Release 1 is now expected post-harvest in 2Q CY27 (previously 2H26).

“This extension will reduce implementation risk.”

GrainCorp said this has not impacted the cost of the project for the second half of the financial year which will be about $25M, as previously disclosed.

“GrainCorp now expects Release 1 spend in FY27 to be $30-35 million to complete the program, representing an increase of $30 million.

“GrainCorp has evaluated options for Release 2 of the systems transformation (relating to the Agribusiness segment) and will defer this element as we focus on the operating model improvements…”

Earnings guidance

The agribusiness said that underlying EBITDA for FY26 was expected to be “around the midpoint of the previously announced range of $200-240M and FY26 Underlying NPAT in the previously announced range of $20-50M, including the restructuring costs of $5M.”

“GrainCorp’s FY26 guidance remains subject to a range of variables, including timing and volume of grain exports, supply chain margins and new season opportunities in Q4.”

GrainCorp said that it was “closely monitoring new crop export opportunities following recent strengthening of global commodity prices”.

“GrainCorp’s robust balance sheet and revised operating model position the business well to capitalise on these opportunities as they arise.

“Supportive conditions have resulted in positive crop development in New South Wales and Victoria, with production in Queensland impacted by drier conditions.”

GrainCorp said it noted the release of ABARES’ September Crop Report, which has forecasting an ECA winter crop of 26.6M tonnes, a 12-percent increase from its June forecast.

GrainCorp will report its FY26 results on 12 November.

Source: GrainCorp