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Duxton Broadacre Farms (ASX:DBF) reaps the rewards of winter harvest

Agriculture
ASX:DBF      MCAP $58.23M
19 February 2021 16:30 (AEDT)
Duxton Farms

Duxton Broadacre Farms (DBF) has reaped the rewards of a prospective winter during its latest harvest.

In December, the company completed the harvest of its 2020/2021 winter crops.

In line with DBF’s expectations, the latest harvest exceeds the volume and yield of the previous winter’s harvest.

Overall, 60,484 tonnes of grain were harvested — 320 per cent more than the previous year’s winter crop.

The majority of the grain harvested was wheat, with 39,427 tonnes of the crop collected. Asa result, the harvest was up 1161 per cent on the previous corresponding period (pcp).

Both the quality and amount of grain harvested exceeded DBF’s expectations.

Notably, 98 per cent of the company’s New South Wales wheat was produced above the base grade.

As of February 19, the company has decided to store a portion of the grain, with the intention to sell down the majority before the end of the financial year.

2021 financial guidance

Despite today’s results, DBF has not published its FY21 guidance and is not covered by any sell-side analysts.

The board’s best estimate of the market’s expectation for FY21 is based on the pcp. Notably, this is not always a reliable indicator of future performance.

In Duxton’s FY20 report, the company tabled a $1.4 million net loss, but hasn’t provided any details about its net earnings for the current financial year. However, DBF has flagged it expects its revenue to come in higher.

On market close for the weekend, DBF is up 2.58 per cent and trading at $1.39 per share.

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