GrainCorp shares surge on strong profit, improved guidance and extended buyback
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More news: GrainCorp was the ASX 200's best performer in early trade, jumping 7.27% to $7.67 at 10:44am AEST.
The company today reported a 17.1% increase in first-half net profit and improved earnings guidance for the full year, as it also announced a special dividend and an extension of its share buyback.
GrainCorp posts higher first-half profit, extends share buyback
The news: GrainCorp has posted a 17.1% increase in first-half net profit and increased its earnings guidance for the full year. The agriculture group also announced it is extending its share buyback.
The numbers: Underlying EBIDTA hit $202 million, up 23% from $164 million in the same period last year, while net profit after tax rose to $58.1 million from $49.6 million.
FY25 guidance for underlying EBIDTA has been increased to $285 million to $325 million and underlying net profit after tax has been lifted to $65 million to $95 million. Previous guidance issued in February forecast underlying EBIDTA at $270 million to $320 million and underlying net profit after tax of $60 million to $90 million.
GrainCorp declared an interim dividend of 24 cents per share, made up of an ordinary dividend of 14 cents and a special dividend of 10 cents. This is the same as in the first half of FY24.
It share buyback, meanwhile, has been increased to a maximum of $75 million from $40 million.
The context: The company said its results were boosted by strong volumes in Queensland and Northern NSW, which offset below average conditions in Victoria and Southern NSW.
What they said: GrainCorp managing director and CEO Robert Spurway said the company “delivered a solid half-year result, capitalising on a large competitive global margin environment”.
The source: ASX
