Scotch whisky and American craft beer have supported GrainCorp's results, with the company's malt business its best performer in the face of falling first-half profits.
Lower grain exports and lower earnings from the edible oils business weighed upon the grains group's underlying first-half profit.
Earnings from GrainCorp's malt business have been growing in recent years whereas earnings from grains storage, logistics and marketing have contracted.
Graincorp on Wednesday booked a 32.5 per cent drop in net profit for the six months to March 31 to $20.4 million, down from $30.2 million in the first half of 2015.
Excluding $11.8 million in restructuring costs, impairments and other one-off items, profit was down 7.2 per cent to $32.2 million.
Lower export volumes from GrainCorp's storage and logistics operations, strong competition from foreign sources of grain in the marketing business, and weaker margins in the edible oils and feeds business pulled back the underlying result.
GrainCorp's malt business, which exports malt and provides malt products and services to brewers and distillers, was the group's biggest earner, lifting earnings before interest, tax, depreciation and amortisation (EBITDA) to $76 million from $69 million.
GrainCorp said the malt business benefited from strong demand from the North American craft markets and global distilling markets, improved barley quality, and continuing operational efficiencies.
"Malt continues to really get strong results," GrainCorp chief executive Mark Palmquist said.
"It translates back to really strong demand, particularly in North America, with not just craft beer but even the craft distilling market improving as well.
"We maintain a very strong presence in the UK, mainly Scotland, in terms of the single malts and blended malt whiskies."
GrainCorp's grain storage and logistics business generated stable EBITDA of $28 million.
GrainCorp's grain receival sites took in more grain from farmers but were holding less already in storage, so total supply did not increase much.
Mr Palmquist said grain export volumes were lower than would be typical, which had meant that GrainCorp's rail assets used to carry grain to port were under-utilised.
The marketing business's EBITDA was stable at $8 million but demand for grain from Australia's east coast was lower because it was more expensive than grain from elsewhere in the world.
Mr Palmquist said GrainCorp's first half result was consistent with the group's guidance in February for an annual underlying net profit of $40 million to $55 million.
"The guidance we gave at the end of February - we still see that as being appropriate for the rest of the year," Mr Palmquist said.
Mr Palmquist said the big variable for GrainCorp would be when grain exports would pick up - expected to be the fourth quarter of fiscal 2016 or the first quarter of fiscal 2017.
Shares in GrainCorp were 16 cents, or two per cent lower at $7.83 at 1536 AEST.
GRAINCORP'S FIRST HALF RESULT
* First-half net profit down 32.5pct to $20.4m.
* Revenue up 4.8pct to $2.07b.
* Interim dividend unchanged at 7.5 cents per share fully franked.
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