Agribusiness GrainCorp (ASX:GNC)
said that strong harvest, coupled with supply shortages and adverse weather conditions in the northern hemisphere, has contributed to “excellent” global demand.
Strong supply chain margins for grain exports has also buoyed its results. The company expects to report full year EBITDA of $480 to $540 million which is above market expectations of $368 million.
Underlying net profit for the 2022 financial year is expected to be between $235 million and $280 million. In 2021, it was $139 million.
“In addition to a second consecutive bumper crop and the global demand for Australian grain, our strong start to FY22 demonstrates the efficiency of our supply chain and the resilience of our industry," said chief executive officer Robert Spurway.
“Once again, Australian growers faced numerous challenges, including flooding and a wet, interrupted harvest, while our operational and processing teams continued to work under heightened Covid-19 restrictions."
“The strong harvest, coupled with supply shortages and adverse weather conditions in the northern hemisphere, is driving excellent global demand for Australian grain and oilseeds and strong supply chain margins for grain exports.”
Shares in GrainCorp (ASX:GNC)
are trading 13.5 per cent higher at $8.18.