CBH posts $131.7m profit

30 Jan, 2014 01:00 AM
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CBH chief executive officer Andy Crane.
CBH has now kept fees flat in all but one of the past four years...
CBH chief executive officer Andy Crane.

THE release of CBH Group's 2013 annual report last week has shown the co-operative posted a $131.7 million net profit.

Maintaining the title as Australia's largest exporter of grain, CBH shipped 11.5mt and reported accumulated sales of more than $2.93 billion in 2013.

The grains giant said it had achieved significant new customer growth across Indonesia, Philippines, China and the Middle East.

It also established and concluded direct sales into Iraq wheat tenders and was the first exporter of Australian canola to China since the market re-opened.

CBH chief executive officer Dr Andy Crane said the co-op had been able to deliver real value for its growers as a result of the bumper 2012-2013 harvests and subsequent profits.

"CBH has now kept fees flat in all but one of the past four years, something that is the envy of growers elsewhere in Australia," Dr Crane said.

The co-op said it had rebated growers $1.00 per tonne to offset storage and handling charges and had introduced operations rebate of $0.85/t to offset 2013-14 charges.

Another highlight of the year was a seven per cent reduction in rail freight rates.

According to CBH this was attributable to $155.2 million investment in capital expenditure and maintenance of the rail network.

"The CBH Group's investment into locomotives and wagons as well as the new contract for above-rail operations with Watco WA Rail started to pay dividends with productivity efficiencies and operational savings able to be passed onto growers," the report stated.

It's investment in Interflour, one of the largest flour milling operations in South East Asia, proved to be a profitable move after it posted a $16 million profit after tax, with $8 million attributable to CBH.

"Since taking a 50 per cent share in 2004, the Interflour investment has become a profitable business," Dr Crane said.

"Returns from the Interflour mills will be rebated to growers through an investment rebate lowering storage and handling charges."

The productive year has also safeguarded the salaries of CBH top executives, which were outlined in the latest annual report for the very first time.

Dr Crane received $1.23 million in 2013, including a base salary of $789,000 and performance bonuses of $375,000.

CBH chairman Neil Wandel was paid $180,000, while deputy chairman Vern Dempster received $104,000 and former deputy chairman Clancy Michael $106,000.

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READER COMMENTS

drowning in debt
30/01/2014 7:03:21 AM, on Farm Weekly

clearly cbh is making too much money off its peasant shareholders.
Beacon Boy
30/01/2014 7:06:46 AM, on Farm Weekly

Now at least if this was corporatised,those profits would be returned to the hard working shareholders that produced the damn grain !!! Disgraceful that CBH can make soo much money and yet our charges stay basically the same!!!!!
X Ag Socialist
30/01/2014 7:19:46 AM, on Farm Weekly

Bumper 2012-2013 harvests?? And here was me thinking 2011/12 and 2013/14 were the good years in WA. 2012 near broke me.
Distressed Asset
30/01/2014 7:38:17 AM, on Farm Weekly

as a sharehodler i dont really want to read about record profits. how about record savings being passed onto the growers? how many parasites can we carry on our backs until we roll over. my worry is they make these record profits and then waste it investing in dreams of becoming a bloody global player. ive got mates on the east coast who honestly believe cbh is going to form a super co-op with east coast growers!! not with my money!!!!!!!!
Jock Munro
30/01/2014 12:14:59 PM, on The Land

WA grain growers deserve to be congratulated for keeping their co-op intact. We in the East are at the total mercy of the mega merchants and they are gouging us with impunity.
Country Boy
30/01/2014 3:24:00 PM, on Farm Weekly

Here we go again, all the PGA boys shouting out for corporatisation. There hasn't been a lot of evidence to say CBH is ripping us off, and they do provide a service that is worth something - you can't store on-farm and QA for nothing. If you think the Chinese, Bunge etc are going to deliver more money to the farmers pocket then think again - I bet they will want to keep as much of it as they can for themselves! Just look at Cargill’s in the eastern states, the farmers pay more for storage and handling than we here in the West and we have better infrastructure.
drowning in debt
30/01/2014 3:49:50 PM, on Farm Weekly

so jock are you suggesting CBHs record profits havent come from gouging? you are a confused man
Deregul8
30/01/2014 3:58:49 PM, on Farm Weekly

'2012 near broke me' At least you would have gone broke knowing everyone else was left with a strong co-op Xag eh? Oops I forgot, you would have got a $2 cheque too.
Sold to Bunge
30/01/2014 7:08:23 PM, on Farm Weekly

Sold and stored 1000t to Bunge. Pocketed an extra $20k for by passing CBH. Another 1000t silo going in as I type. Competition very profitable
Jock Munro
30/01/2014 7:27:58 PM, on The Land

CBH's profits will go back into the business to make it even more efficient and cost effective for growers. Over here in the East, the profits go straight into the shareholders' pockets whilst the system gets run down and our charges increase. What we would give for a co operative system!
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