There were good profits in the storage and logistics, ports and trading sectors, however its merchandise section again struggled.

GrainCorp managing director Mark Irwin attributed the result to increased efficiencies within the business.

"Over the last few years GrainCorp has worked hard to focus on increasing efficiency and reducing cost, and positioning the company to respond to a range of challenges and opportunities, including those presented by the removal of the bulk wheat export monopoly," he said.

"Our 2008/09 result provides tangible evidence of the way we have transformed all aspects of the GrainCorp business and have been able to benefit from offering a broader range of supply chain services to customers, including rail services."

On the matter of GrainCorp’s growth strategy, Mr Irwin said that the company had a sector-leading debt to equity ratio.

He said this solid foundation allowed GrainCorp to put in its bid for United Malt Holdings, a move which has diversified the business so much that now around half of GrainCorp’s future earnings are projected to come from barley and wheat value adding, a far cry from its traditional storage and handling earnings base.