GrainCorp
(ASX:GNC) has upgraded its full year guidance following its strong half year results reinstating its interim dividend, due to a rebound in growing conditions on Australia's east coast following the drought last year and a boost in global demand. The company also attributes its performance to the implementation of operating initiatives and a turnaround in growing conditions following the drought last year.
CEO Robert Spurway said "receivals and exports were up materially, supported by strong global demand and pricing for Australian grain and oilseeds.”
Their revenue jumped 30.8 per cent to $2.56 billion as grain receivables jumped in the wake of suitable moisture conditions for crop planting.
This has helped the company upgrade its FY21 earnings guidance to an underlying EBITDA of $255 million to $285 million, from $230 million to $270 million. The company’s underlying profit is now forecast to be $80-$105 million, up from $60-$85 million.
“The upgrade to guidance reflects strong margins due to high global demand for Australian grain and oilseeds and the delivery of key operating initiatives”.
A fully franked interim dividend of 8 cents per share was declared to be paid in July, its first since 2018.
Shares in GrainCorp
(ASX:GNC) are trading 5.62 per cent higher at $5.45.
