GrainCorp shares dive after profit expectations announced
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More news: Shares in GrainCorp tanked more than 12% in early trading after the agribusiness company said it expected underlying profit to reduce more than 50% in FY24 compared to a year earlier.
GrainCorp shares were down to $7.20 at 10:55am AEDT.
GrainCorp profit to drop 50% as crop conditions normalise
The news: Agribusiness company GrainCorp expects its underlying profit to reduce more than 50% in FY24 compared to a year earlier, as crop growing conditions on Australia's east coast normalise.
The numbers: The company said it expects to report underlying EBITDA in the range of $270 million to $310 million for the full financial year, down from $565 million in FY23. Underlying net profit is expected to be between $55 million to $95 million, a decline from $250 million last year.
The context: Graincorp CEO Robert Spurway said that the company is seeing a return to more normalised crop volumes and a moderation of margins from historically high levels.
Spurway added that Graincorp's sites in Victoria achieved new grain receival records over the harvest period, while recent wet weather in New South Wales have boosted sorghum crop harvest prospects, as well as planting conditions for the 2024-25 winter crop harvest.
The source: ASX announcement
