Australia's Graincorp jumps 8% on annual outlook hike, special dividend (updated)
11/05/2023 02:16
(Adds detail on guidance in paragraphs 3 & 7, shares in
paragraph 6, CEO comments in paragraphs 4 & 5, first-half
results and special dividend in paragraph 8 & 9)
May 11 (Reuters) - Graincorp Ltd GNC.AX raised its
annual earnings guidance on Thursday, encouraged by strong
demand for Australian grain and oilseeds and upbeat performance
in its oilseeds business, sending the agribusiness firm's shares
8.2% higher.
The company now expects fiscal 2023 net profit after tax of
between A$220 million ($149.23 million) and A$260 million, up
from prior forecast of between A$180 million and A$220 million,
it said in a statement.
That guidance compares with a net profit after tax A$380
million posted last year.
"We are seeing good global demand for Australian grain and
oilseeds and expect the strong export program to continue in the
second half," Graincorp CEO Robert Spurway said.
"Our Oilseeds business is performing exceptionally well with
high volumes and crush margins."
Shares of the firm gained as much as 8.2% to A$7.680, their
best intraday gains since Oct. 31 and highest level since March
10.
The Sydney-based firm expects earnings before interest,
taxes, depreciation, and amortisation of A$500 million and A$560
million in fiscal 2023, above earlier expectation of between
A$470 million and A$530 million.
For six months ending March 31, Graincorp's net profit after
tax declined 18.6% to A$200.3 million, while revenue jumped
18.2% to A$4.54 million.
Graincorp also declared an interim dividend of 14 Australian
cents per share and a special dividend of 10 Australian cents
apiece.
($1 = 1.4743 Australian dollars)
(Reporting by Sameer Manekar in Bengaluru; editing by Uttaresh
Venkateshwaran and Rashmi Aich)
((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))