Australia's Graincorp hits record high on strong profit outlook
08/04/2022 01:58
(Adds analyst comments)
** Shares of Graincorp Ltd GNC.AX jump as much as 8.9% to
A$9.46, a record high
** Graincorp expects underlying profit for fiscal 2022 to be
around 2.5 times that of last year, as it benefits from global
supply constraints stemming from Ukraine conflict urn:newsml:reuters.com:*:nL3N2W53G3
** "The conflict in Ukraine and resulting trade disruptions
in the Black Sea region have created uncertainty in global grain
markets, with buyers looking for alternate sources of supply," -
CEO Robert Spurway
** Buyers have turned to Australian grains to fill the gap
in supply, Spurway said
** Across all businesses in its (GNC's) agricultural exposed
portfolio, recent weather events have delivered a 'perfect
storm' of buoyant harvest conditions and positive market pricing
- RBC Capital Markets
** RBC adds this trend looks set to continue into FY23
** GNC posts its biggest intraday pct gain since Feb 7
** Stock up 5.2% this year, as of last close
(Reporting by Harish Sridharan in Bengaluru)
((harish.sridharan@thomsonreuters.com))