Graincorp flags rise in EBITDA
GrainCorp Limited (GNC) said this morning that following the harvest of the winter crop the grain handler is expecting EBITDA in the range of between $180 million and $210 million for the financial year ended 30 September 2010. For the year recently completed, EBITDA was $165.2 million, however in today's forecast there is a contribution from the recently purchased malt business of between $100 million and $120 million, indicating other businesses were contributing less.
GrainCorp managing director Mr Mark Irwin said the result was buoyed by a strong harvest in Victoria offsetting marginally lower harvests in NSW and Queensland.
“So far the harvest in Victoria, while being slowed by rain, has met our budget expectations,” Mr Irwin.
“Our ‘summer crop’ receival estimate is 600,000t which represents an average intake of sorghum for our network in Queensland and Northern NSW."
The group had received 6.3 million tonnes so far this year, while anticipating it would receive between 7 million and 8.5 million in total for the year.
Looking at the EBITDA prediction, Graincorp said this included the NPAT from 60% share of Allied Mills through joint venture partner Cargill Australia.
At the close Monday, Graincorp shares were $5.81.
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