Shares in GrainCorp (GNC) jumped yesterday after the company again upgraded earnings guidance for its year to September 2022 results.
The company told the ASX that the new range was $680-$730 million, up a possible $60 million as the company enjoys plentiful supplies, exports and solid prices.
Net after tax profit for the year to September is now estimated to be in the range of $365 to $400 million, up from the previous estimate of $310 to $370 million.
That saw GNC shares close up more than 5% at $8.03, still a long way under the high of $10.86 hit in early May as global wheat prices soared in the aftermath of the confusion caused by Russia’s invasion of Ukraine.
GrainCorp CEO Robert Spurway said in Wednesday’s statement that the improved outlook reflects outstanding execution across each of GrainCorp’s business areas and expectations for the east coast Australian (ECA) crop in 2022/23.
“We are pleased to upgrade our FY22 earnings guidance, with both our Agribusiness and Processing businesses on track to deliver record financial results,” Mr Spurway said.
“We are operating our supply chains at close to full capacity and our teams have done an outstanding job in overcoming disruptions relating to weather and COVID to export 7.9 million tonnes of grain year-to-date.
“We expect another well above average East Coast Australia (ECA) crop in 2022/23 based on crop development we have seen to date, and a favourable 3-month rainfall outlook.
“This positive outlook is driving an increase in fourth quarter activity and supporting export volumes, forward contracted grain sales and supply chain margins.”
GrainCorp said its Processing and Feeds, Fats and Oils (FFO) businesses had also performed well, “benefitting from strong ongoing demand for crude and refined vegetable oils, and renewable fuel feedstocks such as used cooking oil (UCO) and tallow.”
“In preparation for the upcoming harvest, GrainCorp is investing in additional bunker storage and grain handling equipment to maximise receival capacity at key sites across our network,” Mr Spurway said.
“We are also well underway with our recruitment programme to source harvest casuals across the ECA.
