Shares of GrainCorp (ASX: GNC) drop on revised outlook for FY24

May 06, 2024 03:31 PM AEST | By Team Kalkine Media
 Shares of GrainCorp (ASX: GNC) drop on revised outlook for FY24
Image source: Pixabay

GrainCorp (ASX: GNC), the Australian commodity trader, witnessed a significant downturn in its share price, experiencing a sharp decline of 4.10% to AU$8.06 apiece on 6 May 2024. This plunge marks the largest intraday percentage drop since 14 February.

The company issued a downward revision of its fiscal year 2024 (FY24) earnings before interest, taxes, depreciation, and amortisation (EBITDA) outlook, now forecasting it to be in the range of AU$250 million ($165.25 million) to AU$280 million. This adjustment comes in contrast to the previous guidance of AU$270 million to AU$310 million.

Furthermore, GrainCorp has slashed its FY24 underlying net profit after tax (NPAT) outlook, revising it downward to a range between AU$60 million and AU$80 million, down from the prior projection of AU$65 million to AU$95 million.

The company cited softened operating conditions and a subdued outlook leading into the second half of FY24 as contributing factors to the downward revision. Additionally, GrainCorp reported weaker-than-expected margins and volumes for the month of April.

GrainCorp anticipates reporting an EBITDA of AU$164 million for the first half of FY24, a significant decline from the previous year's figure of AU$383 million. Similarly, the company expects its underlying NPAT for the first half to reach AU$57 million, a stark decrease from the AU$200 million reported in the corresponding period last year.

Despite the recent downturn, GrainCorp's stock had shown resilience earlier in the year, posting a notable gain of 15.4% year-to-date as of the last close.

The news of GrainCorp's lowered earnings outlook and weakened operating conditions has had a substantial impact on investor sentiment, reflected in the sharp decline in its share price. Investors are closely monitoring the company's performance and await further updates on its strategies to navigate through the challenging market conditions.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.