Australian agribusiness company Graincorp Limited (ASX:GNC) lifted its earnings guidance for the year ended 30 September 2018. Amid severe drought conditions in New South Wales and Queensland, the company has elevated its FY18 earnings guidance with underlying earnings before interest, tax, depreciation and amortization (EBITDA) now expected to range between $255-$270 million and underlying net profit after tax (NPAT) to be within $60-$75 million.
The Group’s Managing Director and CEO Mark Palmquist accredited this upliftment to the benefits derived from the positive performance of the global Malt business as well as its strong market position in the North American craft beer sector. The company has also observed significant rise in international grain trading book and Liquid Terminals businesses along with progress over Food units in GrainCorp oil.
The advantages earned over the company’s diversified business model has helped the group to offset challenges faced in drought conditions prevailing in eastern Australia.
Looking into FY19, the company expects a substantial decline in grain production in eastern Australia resulting from lower production forecasts from drought affected areas such as Victoria and southern new South Wales.
GrainCorp’s share price has fallen by 0.377% to $7.930 on 10 August 2018 (7:29 PM AEST). The stock has seen a performance change of -6.02% over the past one year.
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