Graincorp (ASX:GNC) - Managing Director and Chief Executive Officer, Robert Spurway
Managing Director and Chief Executive Officer, Robert Spurway
Source: Graincorp
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  • Graincorp’s (GNC) share price climbed 6.4 per cent after the company upped its earnings guidance and declared a higher interim dividend for HY21
  • The company reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $140 million for the half-year compared to $105 million on the prior corresponding period
  • Net profit after tax (NPAT) and revenue from continuing operations also increased, clocking in at $51 million and $2.5 million, respectively
  • On account of the stronger performance, the agribusiness elected to increase its full year earnings guidance for underlying EBITDA and underlying NPAT, citing strong global demand and pricing for Australian grain and oilseeds
  • Additionally, Graincorp is to shell out an 8 cent fully franked interim dividend to shareholders
  • Graincorp shares are up 4.94 per cent, trading at $5.42

Graincorp’s (GNC) share price climbed 6.4 per cent after the company upped its earnings guidance and declared a higher interim dividend for HY21.

The company reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $140 million for the half year compared to $105 million on the prior corresponding period.

Further to this, GNC’s underlying net profit after tax (NPAT) from continuing operations clocked in at $51 million in contrast to the $27 million recorded for the previous half-year.

Meanwhile, revenue from continuing operations increased by 30.8 per cent to $2.5 million compared to $1.9 million for HY20.

On account of the stronger performance, the agribusiness elected to increase its full year earnings guidance for underlying EBITDA and underlying NPAT to a $255-$285 million range and an $80-$105 million range, respectively.

The ASX-lister attributed the growth to a much larger crop and increased grain volumes in its network, explaining that receivals and exports were up materially due to strong global demand and pricing for Australian grain and oilseeds.

Graincorp is also set to shell out an 8 cent fully franked interim dividend to its shareholders, a 1 cent increase on its seven-cent final dividend paid in December.

As at March 31, 2021, GrainCorp’s core debt was up from $37 million to $90 million in September 2020, which the company affirms is in line with seasonal working capital requirements.

Graincorp’s Managing Director and Chief Executive Officer Robert Spurway said he was pleased with the positive momentum across the business.

“There is good export demand, that extends well into FY22, supported by high levels of carry-out grain anticipated at the full year,” he commented.

“We are looking forward to working with growers and preparing for the next harvest,” he added.

Graincorp shares are up 4.94 per cent, trading at $5.42 at 4:04pm AEST.

GNC by the numbers
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