GrainCorp (ASX:GNC) cut about 80 positions following a review of its agribusiness operating model, which identified opportunities to reduce duplication across the company's integrated East Coast of Australia network and corporate support functions, according to a Thursday filing with the Australian bourse.
The company incurred one-off restructuring costs of AU$5 million in fiscal 2026 related to the operating model changes, which are expected to improve execution and boost financial performance outcomes, per the filing.
Additionally, GrainCorp said its business transformation program is on track to deliver run-rate benefits of AU$12 million by the end of fiscal 2026, which is above the company's previously disclosed commitment.
The expected benefits build momentum toward a targeted uplift of AU$20 million to AU$30 million in through-the-cycle earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of fiscal 2028, the company said.
It is also pursuing a systems transformation, where late-stage testing has resulted in a decision to extend the deployment timeline. The first release under the transformation is now expected post-harvest in the second quarter of 2027, an extension from the previous target for the second half of this year.
GrainCorp now expects spend for the first release in fiscal 2027 to be between AU$30 million and AU$35 million to complete the program, representing an increase of $30 million.
The company reaffirmed its fiscal 2026 underlying EBITDA outlook at AU$200 million to AU$240 million, and underlying net profit after tax guidance at AU$20 million to AU$50 million.