Bumper crop on the horizon for Australia's GrainCorp, says Morningstar
14/11/2024 23:11
** Morningstar says Australia's GrainCorp GNC.AX annual
earnings remained broadly in line with expectations as cropping
conditions have significantly normalised
** Agribusiness firm reported net profit after tax (NPAT) of
A$62 million for fiscal 2024, a 75.2% drop from A$250 mln last
year
** Morningstar expects eastern Australian winter grain
production to normalise beyond fiscal 2026
** Brokerage says co's yearly EBITDA of A$268 mln was 1%
below their forecast as east coast Australian grain production
was about 24 mln metric tons in FY24, down from 30 mln metric
tons the prior year
** "While not the bumper crop enjoyed in recent years, we
think fiscal 2024 was an above-average year" - Morningstar
** Maintains fair value estimate of A$7.9
** Upgrades co's FY26 EBITDA forecast to A$315 mln, up by
A$21 mln, on the back of its cost-out program
** GNC up 19.2% as of last close YTD, outpacing a 5.4% rise
on the ASX Agribusiness index .AXAG
(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com;))