- Australia-based grain and edible oils business GrainCorp (GNC) significantly upgrades its earnings guidance for FY22
- GrainCorp has increased underlying EBITDA from between $480 and $540 million to be in the range of $590 and $670 million
- Underlying NPAT is also forecast at between $310 and $370 million which is up from between $235 and $280 million
- The billion-dollar stock says this reflects the strong and ongoing global demand for Australian grain and oilseeds as the northern hemisphere faces supply shortages
- GNC shares have been trading 5.52 per cent higher at $9.17
Integrated grain and edible oils business GrainCorp (GNC) has today upgraded its earnings guidance for the 2022 financial year.
After forecasting an underlying earnings before interest, depreciation and amortisation (EBITDA) of between $480 and $540 million in February, this has now been revised to be in the range of $590 and $670 million.
Following suit, underlying net profit after tax (NPAT) is expected to be between $310 and $370 million which is up from $235 to $280 million.
The billion-dollar company said the revised outlook reflects ‘significant ongoing global demand’ for Australian grain and oilseeds as well as favourable planting conditions for the upcoming Australian winter crop.
According to GrainCorp, the continued La Nina conditions have actually provided “excellent planting conditions” for the 2022 winter crop.
GrainCorp CEO and Managing Director Robert Spurway said the global demand and strong supply chain margin for grain exports is driven by shortages in the northern hemisphere and two consecutive “bumper crops” in Australia’s east coast.
“The conflict in Ukraine and resulting trade disruptions in the Black Sea region have created uncertainty in global grain markets, with buyers looking for alternate sources of supply,” Mr Spurway said.
“This has further increased both the demand for Australian grain and oilseeds and export supply chain margins.”
GNC shares have been trading 5.52 per cent higher at $9.17 at 3:37 pm AEST.