GrainCorp reaffirms FY26 amid ‘challenging global grain market’
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The news: Agriculture group GrainCorp has reaffirmed its FY26 guidance despite reporting a slump in first-half profit and earnings.
The numbers: GrainCorp reiterated underlying EBITDA guidance of between $200 million and $240 million, and underlying net profit after tax of between $20 million to $50 million.
However, it saw first-half net profit shrink to $5 million, compared to $58 million in the prior corresponding period. Underlying EBITDA fell from $202 million to $136 million year on year, while underlying net profit dropped from $69 million to $33 million.
GrainCorp declared an interim dividend of 14 cents per share, flat year on year, though last year’s payout added a special dividend of 10 cents per share.
The context: GrainCrop’s managing director and CEO Robert Spurway warned of a “challenging global grain market”, but said the company has experienced “minimal impact” from the Middle East conflict.
What they said: “Oversupply of grain and associated low pricing have compressed margins across the supply chain and reduced grower selling activity, limiting available volumes and increasing competition for grain brought to market,” said Spurway.
“Against this backdrop, we are tightly focused on cost management, capital discipline and portfolio optimisation.”
The sources: ASX, RBC Capital analyst note
