Australia's GrainCorp eyes biggest gain in over 2 years on higher forecast, expanded buyback
15/05/2025 05:00
By Jasmeen Ara Islam Shaikh
May 15 (Reuters) - Shares in Australia's GrainCorp GNC.AX were set for their biggest single-day gain in over two years on Thursday after the company raised its annual earnings forecast and expanded its share buyback following a higher first-half profit.
The stock, which jumped as much as 9.2%, was the top gainer on the benchmark ASX200 .AXJO, which was flat. It rose to A$7.81, its highest level since December 3, 2024.
The stock was up 7% as of 0338 GMT, trimming some of its earlier gains.
The firm, which deals in the grains and edible oils business, expects underlying net profit after tax of A$65 million ($41.9 million) to A$95 million for fiscal year 2025, up from previous estimates of A$60 million to A$95 million.
It also upgraded its forecast for underlying earnings before interest, taxes, depreciation and amortization to A$285 million to A$325 million, from A$270 million to A$320 million.
GrainCorp increased its on-market share buyback to A$75 million from A$50 million, it said. Jefferies said the company has a robust balance sheet and is seeing continued long-term opportunities.
Chief Executive Robert Spurway said GrainCorp remains “well positioned to manage evolving global trade flows, by servicing a broad and geographically diverse range of end markets, with minimal exposure to the United States”.
The company reported a profit of A$58.1 million for the first-half, 17% higher than a year earlier, reflecting a large harvest in Australia's east coast.
Its revenue jumped 21% to A$4.09 billion.
($1 = 1.5521 Australian dollars)
(Reporting by Jasmeen Ara Shaikh and Kumar Tanishk in Bengaluru; Editing by Sonia Cheema)
((JasmeenAraIslam.Shaikh@thomsonreuters.com;))