West Perth-based CBH Group has posted a profit of $61.4 million for the 2004-05 financial year, at the same time revealing its total assets were over $1 billion.
West Perth-based CBH Group has posted a profit of $61.4 million for the 2004-05 financial year, at the same time revealing its total assets were over $1 billion.
The company held its 73rd Annual General Meeting yesterday, attended by grower shareholders and invited grain industry stakeholders.
CBH Group Chief Executive Officer, Imre Mencshelyi commented on the CBH Group's financial performance for the 2004-05 reporting period, which saw the group achieve a considerable profit.
"Following a strong harvest of 10.6 million tonnes, the CBH Group recorded a corresponding after-tax surplus of $61.4 million for the 2004-05 financial year," Mr Mencshelyi said.
"Coupled with this performance is the fact that the CBH Group's total assets are now worth in excess of $1 billion, a first for the company.
"Over the last ten years, we have invested $800 million in the storage and handling network and increased our storage capacity from 12 million to 19 million tonnes. During this time we have also been able to continually provide our shareholders with the most competitive and transparent rates in Australia."
Mr Mencshelyi said the CBH Group was pleased with the performance of its investment into Asian flour mills and in particular, the turnaround in performance of the mills.
"The first year results posted in the annual report reflect the performance of the mills from 1 January 2005 to 31 October 2005, with Pacific Agrifoods only assuming full control in May 2005," he said.
"Since this time, we have seen a favourable turnaround in the performance of the mills as a result of the CBH Group and Salim Group's management expertise.
"This turnaround in performance was recognised in the AusCham-Austrade Business Awards held in November 2005, where Interflour was named runner up in the Breakthrough Award. We expect this positive trend to continue into the second year of operation.
"We entered into this investment with a long term view and we firmly believe that this investment will provide significant benefit to the growers of Western Australia, helping to secure their future.
"The CBH Group will continue to lead the industry and push boundaries to ensure that Western Australian grain growers are well positioned in the future."
In his report to shareholders, CBH Group Chairman Tony Critch focused on the Board's commitment to the core business of storage, handling and marketing while preparing the company for future challenges.
"The Board of Directors is very clearly focused on ensuring that storage, handling and marketing remain at the forefront of the CBH Group's business," Mr Critch said.
"Our strategies for investment in the network meant that the second largest harvest on record was received in record time, without major incident.
"Grain Pool and AgraCorp also worked well together to not only successfully market 3 million tonnes of grain to more than 20 countries around the globe, but to introduce a number of innovative marketing products, providing grain growers with more choice and flexibility when it comes to selling their crop.
Mr Critch said as an organisation responsible for the storage, handling and marketing interests of Western Australian grain growers, the CBH Group will continue to keep an eye on the future.
"We have seen many significant changes to this industry in recent years and current events lead many of us to think this trend will continue," he said.
"The CBH Group has been preparing itself for some time to ensure that it will continue to grow and prosper in a changing environment.
"One of the most significant steps we have taken to ensure this is through our investment in flour mills, located in three of Asia's fastest growing markets - Indonesia, Malaysia and Vietnam. This investment creates a unique supply chain that is owned by Western Australian growers.
"Rather than be alarmed at what threats change can bring, we a
