GrainCorp expects profit

author avatar
Good grain gains: GrainCorp is expecting a strong year. Photo by Supplied

GrainCorp is forecasting earnings of about half a billion dollars for the current financial year.

The company issued the profit forecast on February 7, with the estimate that the earnings before interest, taxes and depreciation would be in the range of $480 to $540 million.

The performance comes on the back of improved seasonal conditions for much of the country and a move by the company to expand its receival facilities, including sites in north-east Victoria.

The company expects to see total receivals of between 16 and 17 million tonnes and exports of 8.5 to 9.5 million tonnes for this financial year.

“The strong harvest, coupled with supply shortages and adverse weather conditions in the Northern Hemisphere is driving excellent global demand for Australian grain and oilseeds and strong supply chain margins for grain exports,” managing director Robert Spurway said.

“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 financial year 2022.

“Our processing business has also continued to perform well, with oilseeds benefiting from strong gross crush margins and high utilisation.”

The company expects net profit after tax of between $235 million and $280 million.