GraninCorp hit by trade tension, $40m drop in EBITDA

Company News

by Jessica Amir

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.

 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.