GRAINCORP continues to take advantage of the near ideal grain growing conditions through its east coast footprint, this week announcing beefed up earnings advice.
The bulk handler said it expected full year 2022 earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $480 - 540million, a big step up from FY21's $331 million.
It is a similar story for net profit after tax (NPAT) with a forecast of a FY22 underlying NPAT2 of $235 - 280 million, up from $139 million for FY21.
GrainCorp managing director Robert Spurway said the strong outlook reflects a big year for the company's supply chain business, continued delivery of operating initiatives, and high global demand for Australian grain and oilseeds.
"GrainCorp delivered an excellent result in FY21, and I am pleased to report that we expect this performance to be further improved in FY22," Mr Spurway said.
He said the results were not just down to the good grain growing conditions.
"In addition to a second consecutive bumper crop and the global demand for Australian grain, our strong start to FY22 demonstrates the efficiency of our supply chain and the resilience of our industry," Mr Spurway said.
He said GrainCorp had provided an extra 1.5 million tonnes of storage at harvest, which led to a number of site receival records being broken along the way to a 13.7 million tonne season.
And the good news on the receival front does not end there.
"We also expect good summer crop receivals in FY22, which are benefitting from optimal weather conditions," Mr Spurway said.
At the export end, Mr Spurway said solid demand internationally meant GrainCorp ports had been flat out.
"Our ports have been operating at capacity for the last year to send Australian grain out to the world and we expect this to continue well into FY23," he said.
Outside the bulk handling and grain marketing business, Mr Spurway said the company's processing business had continued to perform well, underpinned by good crush margins.
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