Australia's GrainCorp forecasts lower annual profit on supply glut, shares tank (updated)
02/02/2026 03:04
Updates throughout with more detail, shares in paragraph 3 Feb 2 (Reuters) - Australian agribusiness GrainCorp GNC.AX forecast a sharp drop in annual profit on Monday, pressured by weak commodity prices due to oversupply, sending its shares tumbling to a more than four-year low. GrainCorp forecast post-tax underlying net profit between A$20 million and A$50 million ($13.92 million-$34.80 million) for the year ending September 2026, substantially below a Visible Alpha consensus estimate of A$89.6 million and last year's A$87 million. Shares of the Sydney-based company fell as much as 19.3% to A$5.81, their lowest level since late November 2021. The stock recouped some losses in the afternoon session to trade 14.6% lower at A$6.155 apiece. It was the top loser in the ASX 200 benchmark index .AXJO, which was down 1.1%, as of 0223 GMT. "Record global production has created an oversupply of grain, outpacing demand growth and placing downward pressure on commodity prices for the whole market," said GrainCorp CEO and Managing Director Robert Spurway. "As a result, GrainCorp is experiencing lower margins on grain handled in FY26." GrainCorp, one of Australia's biggest agribusinesses, operate an integrated grain storage, handling, logistics, marketing and processing network for agricultural commodities. The company projected underlying operating earnings between A$200 million and A$240 million for fiscal 2026, below the Visible Alpha consensus of A$302.9 million and the previous year's A$308 million. ($1 = 1.4370 Australian dollars) (Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Subhranshu Sahu) ((JasmeenAraIslam.Shaikh@thomsonreuters.com;))