GRAINCORP Ltd has cashed in on export deregulation and better seasonal conditions by notching up a $63 million profit over the past year.

The east coast bulk handler was able to export wheat directly for the first time and generate higher returns from its storage and port operations.

The result ends two years of losses.

It also includes further expansion by GrainCorp into the malting business.

But there were soft spots for the company, notably a poor merchandise performance and a big write-down of inventories.

In announcing full-year results last week, managing director Mark Irwin said the company had reaped the rewards of several years of hard work finding efficiencies and cutting costs.

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

During the 12 months to the end of September, GrainCorp earned $165 million before interest, tax and depreciation.

The result was $114 million up on the previous year.

Net profit after tax came in at $63.2 million, compared with a $20 million loss in each of the previous two years.

Grain receivals through the company's country network totalled 9.6 million tonnes, while 5.2 million tonnes of export grain were handled.

GrainCorp's own bulk wheat exports amounted to 1.3 million tonnes, while a similar tonnage of non-wheat grains was also exported.

But the company's fertiliser and chemical business finished $23 million in the red before interest and tax.

This included an inventory write-down of more than $11 million and an "impairment charge" of $3.3 million on the assets of the merchandising operation.

"The disappointing result has precipitated a strategic review of the merchandise business," Mr Irwin said.

A capital raising of $198 million underpinned the acquisition of United Malt Holdings (now GrainCorp Malt) for $3.3 million, delivering several new malting operations - Canada Malting, Great Western Malting, Bairds Malt and Barrett Burston Malting.

"This means that around half of our future earnings can come from barley and wheat value adding," Mr Irwin said.

"We now have to focus on integrating the malting operations under the new GrainCorp Malt business."