WEST Australian bulk handler and marketer CBH Group has slipped to a $21.4 million loss for the year ended September 30, 2011.
The result came after drought and challenging grain trading conditions.
The co-operative's 2011 annual report, sent to its members last week, shows the grain trading and marketing division made a net loss after tax of $23.4 million and the storage and handling business a $4.8 million loss.
But these were offset by a net profit after tax of $14.7 million from its Interflour milling business in South-East Asia.
CBH Group chief executive Andy Crane said the company's overall loss was disappointing, but the challenging year had underlined the importance of the business efficiency drive undertaken by the group in 2010 and 2011, resulting in a reduction in its break-even point coinciding with the small crop.
"Our downstream investments played a key role in minimising the group loss in a financial year when we were hit by one of the worst droughts ever in Western Australia, and exceptionally difficult trading and logistics conditions for all marketers operating in eastern Australia," Dr Crane said.
He said a vastly improved financial result was expected this year following record deliveries of 14.9 million tonnes for the harvest just completed.
