UPDATE: EAST coast grain business GrainCorp will tough it out against US predator Archer Daniels Midland.

After a long period of silince, the GrainCorp board has spurned a $2.7 billion conditional proposal by ADM, saying the $11.75 a share bid "materially undervalues'' the company.

GrainCorp managing director Alison Watkins said today the company had not put a price in its business.

"But our board comfortably came to the conclusion that the proposal was not in the best interests of shareholders,'' Ms Watkins said.

"Our board will listen to any proposal.

"But this one was unsolicited and we've dealt with it.''

Questioned whether GrainCorp had been entertaining other proposals, Ms Watkins said the board was "in compliance with our continuous disclosure obligations'' under the Corporations Act.

The comments come as GrainCorp announced a 19 per cent increase in net profit after tax for the year ended September 30, 2012, to $205 million.

The company's earnings before interest, tax, depreciation and amortisation rose 18 per cent during the past year to $414 million.

It announced a final fully franked dividend of 35 cents a share, made up of a 20 cents ordinary dividend and a 15 cent special dividend.

The total dividend for the year was 65 cents a share, with the payout representing 68 per cent of net profit.

GrainCorp will pay shareholders the dividend on December 17 on shares held as at December 3.

Shares remained relatively unchanged in price from the start of today's trading at $12.20.

Ms Watkins said the strong financial performance had been driven by strong commodity volumes, "amplified by the substantial progress made in capturing value from the company's integrated assets and global operations''.

Grain receivals of 15.2 million tonnes delivered to GrainCorp's country network and port terminals helped provide $250 million in EBITDA, while the malting division accounted for $117 million.

Margins were lower in the marketing division, with $63 million in EBITDA recorded from revenue of $1.89 billion.

Last year, the marketing division recorded EBITDA of $70 million from revenue of $1.41 billion.

Ms Watkins said the malting division performed well, with volumes rising from 1.09 million tonnes in 2011 to 1.32 million tonnes in 2012.

She said the company had identified $110 million in earnings growth initiatives by the 2016 financial year.