Profit Halves as Grange Battles Lower Prices and Volumes
Grange Resources reported a 12% drop in revenue and a 48% plunge in profit for the first half of 2025, driven by weaker sales prices and shipment volumes. Despite the downturn, net tangible asset backing per share edged up slightly.
- Revenue declined 12% to $206.4 million in H1 2025
- Profit after tax fell 48% to $13.8 million
- Lower realised sales prices and shipment volumes cited as main causes
- No interim dividend declared for the period
- Net tangible asset backing per share increased marginally to $0.93
Financial Performance Overview
Grange Resources Limited has released its half-year results for the period ending 30 June 2025, revealing a notable decline in both revenue and profitability compared to the same period last year. The company’s revenue fell by 12%, from $234 million to $206 million, while profit after tax was nearly halved, dropping 48% to $13.8 million.
Drivers Behind the Decline
The company attributed the downturn primarily to lower realised sales prices and reduced shipment volumes. This combination suggests that Grange faced both market pricing pressures and operational challenges affecting output. While the announcement did not provide a detailed breakdown of these factors, the impact on earnings was significant enough to prompt a cautious tone.
Dividend and Balance Sheet Highlights
In light of the weaker earnings, Grange Resources has elected not to declare an interim dividend for this half-year period. However, the company’s net tangible asset backing per share improved slightly, rising from $0.89 to $0.93, indicating a modest strengthening of the underlying asset base despite the profit squeeze.
Looking Ahead
While the results reflect a challenging environment for Grange Resources, the company’s balance sheet resilience may provide some buffer as it navigates these headwinds. Investors will be keen to understand whether the lower volumes are a temporary setback or indicative of longer-term operational issues, and how pricing trends might evolve in the coming months.
Bottom Line?
Grange’s half-year results highlight immediate pressures but leave key questions about recovery and market conditions unanswered.
Questions in the middle?
- What specific factors caused the decline in shipment volumes?
- How does management plan to address the pricing pressures?
- Will Grange Resources resume dividend payments in the near future?
