Australia's Graincorp raises profit forecast on Ukraine conflict-led supply woes (updated)
08/04/2022 24:35
(Adds details, CEO quote)
April 8 (Reuters) - Australia's Graincorp GNC.AX said on
Friday it 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 the conflict in Ukraine.
The agribusiness firm said it expects annual underlying net
profit after tax of A$310 million ($231.82 million) to A$370
million, up from its previous forecast of A$235 million to A$280
million and higher than the A$139 million reported last year.
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"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,"
Graincorp Chief Executive Officer Robert Spurway said, adding
that buyers have turned to Australian grains to fill the gap in
supply.
The company also pointed to higher export supply-chain
margins and a good crop season for its higher profit outlook.
Graincorp said its ports were operating at nearly full
capacity, despite flood-related disruptions in Australia's east
coast.
Processing business was also performing strongly, with
oilseeds benefiting from strong global demand for crude and
refined vegetable oils, the company added.
($1 = 1.3373 Australian dollars)
(Reporting by Harshita Swaminathan;
Editing by Vinay Dwivedi)
((Harshita.Swaminathan@thomsonreuters.com;))