Australia's United Malt says Canadian drought to hit profit as costs rise

United Malt

26/04/2022 04:40

** Shares in commercial maltster United Malt Group  UMG.AX 
slide as much as 6.9% to A$3.94, lowest since April 14
    ** Stock could see its sharpest drop since Sept. 2, if
losses hold
    ** UMG sees underlying EBITDA for fiscal 2022 between A$115
mln ($83.12 mln) and A$140 mln, compared to A$137.2 mln in FY21
 urn:newsml:reuters.com:*:nASX6fyhGt
    ** Says severe drought conditions in Canada have hit co's
barley production, crop quality and raised costs
    ** Adds that added costs are expected to be temporary
    ** "Recent cost escalations will be largely passed through
to customers over the course of the next 9 months, reducing the
impact into FY23" - UMG
    ** Confirms that capital expenditure for FY22 is expected to
be about A$110 mln
    ** UMG anticipates "a meaningful increase in underlying
EBITDA in FY23 and beyond"    
    ** Stock down about 3% this year, as of last close 


($1 = 1.3835 Australian dollars)

 (Reporting by Sameer Manekar and Savyata Mishra in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))