GrainCorp (ASX:GNC) has announced its grains business unit has been hit by a $40 million drop in its expected EBITDA in the half-year period ending 31 March 2019.
Grain trading conditions (grain flows) were impacted by international trade tensions on, over the last six weeks of its half-year.
The trade tensions compounded onto the ongoing drought conditions in eastern Australia, and significantly hit ‘summer crop production, most particularly sorghum’.
GrainCorp’s CEO says, while it is a disappointing outcome amid a challenging period in international grain market, it ‘has strong risk management processes in place’ and will continue to monitor conditions’.
The Sydney based company will release its audited half yearly results on Thursday, 9 May 2019.
Shares in GrainCorp (ASX:GNC) are trading 2.8 per cent lower at $9.14. Year-to-date its shares are trading 7 per cent higher.