ASX-LISTED logistics firm Qube has reported gross revenue of $898 million from its grain-trading business for the year to June 30.

In its FY25 results released Thursday, Qube flagged plans to expand grain operations interstate, including acquiring a bulk site in Western Australia, and launching container packing in WA, Queensland, and Victoria.

FY25 will mark Qube’s first full year in grain trading, after FY24 delivered $141.9M in revenue from just six months of operations.

Grain throughput at Qube’s export terminals, Quattro at Port Kembla and the Newcastle Agri Terminal, more than doubled to 3.08 million tonnes (Mt).

Volume was evenly split at the sites, with Newcastle handling 1.755Mt, up from 732,300t in FY24, and Quattro 1.322Mt, up from 777,000t in FY24.

Qube managing director Paul Digney said the results demonstrated the success of the company’s strategy to more fully utilise existing logistics assets via a grain-trading platform.

“The growth in that business underscores our ability to identify an opportunity, to do the research and plan, put in place the appropriate commercial and risk parameters, act with agility and execute the strategy for the benefit of our customers and shareholders,” Mr Digney said.

WA expansion

Mr Digney told shareholders that Qube was planning to expand its grain-trading model to other states.

Currently, the company has only focused its attention on NSW grain trading and handling to service its existing infrastructure.

Alongside the terminals, the company owns up-country sites at Narrabri, Coonamble, and Narromine, all in the northern half of NSW.

In April, Qube announced its acquisition of AGT Foods Australia’s Narrabri agri storage and handling facility for $7.9M.

Located adjacent to Qube’s existing operations, the property features 10,000t of silo storage, a bulk storage shed, rail pad and weighbridge, as well as container handling equipment.

Mr Digney said WA was a key location for the next bulk grain expansion.

“We’re now looking to selectively expand into other states…with the addition of a bulk-handling facility at the Port of Albany in WA, which we…acquired…in July, along with establishing new container-packing operations this year in existing sites in our logistics business in Brisbane, Melbourne and Fremantle.”

Qube chief financial officer Mark Wratten said this facility, owned by Albany Bulk Handling, a subsidiary of logistics firm LINX, was purchased for about $25M.

“This business owns bulk-export infrastructure and operations on a site leased from Southern Ports Authority at the Port of Albany in Western Australia and is currently mostly focused on wood chip export,” Mr Wratten said.

“Qube intends to upgrade the facility to handle multiple commodities including mineral sands, spodumene and grain and significantly increase the volume through this facility.”

The existing ABH infrastructure includes a large stockyard, conveyor system and ship loader, and currently handles woodchips.

The facility could help create more competition in the WA bulk grain exporting space, currently dominated by CBH Group.

Earnings, revenue up

Other than grain trading and handling, Qube has a sizeable network of port and up-country infrastructure, making it Australia’s largest provider of integrated import and export logistics services.

Overall, the company reported earnings before interest, taxes and amortisation of $377.2M, a rise of 18.5pc on FY24.

Revenue also grew, up 27.3pc to $4.46B.

Qube’s business is split into two core divisions: the Operating Division and Qube’s 50-percent interest in Patrick Terminals.

The Operating Division comprises two business units: Qube Logistics & Infrastructure, and Qube Ports & Bulk.

The Operating Division reported strong underlying revenue growth of 27.4pc to $4.5 billion and underlying EBITA of 17.4pc to $419.5M.

In the Logistics & Infrastructure business unit, revenue increased by 57.4pc to $2.44B and underlying EBITA grew 20.3pc to $287M.

The Ports & Bulk business unit reported more modest underlying revenue growth but strong earnings growth, with revenue increasing by 3.5pc to $2.02B and EBITA increasing by 10.2pc to $183.1M.

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