GrainCorp Limited (ASX:GNC) Announces FY25 Earnings Guidance and $50 Million Share Buy-Back
Financial Performance
GrainCorp Limited expects FY25 Underlying EBITDA of $270-320 million and Underlying NPAT of $60-95 million, excluding Business Transformation costs.
Operating Update
Managing Director and CEO Robert Spurway stated that despite varying growing conditions, East Coast Australia production remains robust. Year-to-date receivals have increased to 11.9mmt from 8.5mmt, supported by a carry-in of 2.5mmt. Summer crop prospects are encouraging with a forecasted FY25 ECA sorghum crop of 2.1mmt.
Strategy
GrainCorp is progressing key initiatives for earnings diversification, including expanding its bulk materials program and assessing a renewable fuels facility. The company is also implementing its Business Transformation program to enhance efficiency.
Capital Management
GrainCorp announced an on-market share buy-back of up to $50 million, reflecting its strong balance sheet and commitment to shareholder returns.
Executive Comments
“The share buy-back reflects the strength of our balance sheet and delivers on our ongoing commitment to continue generating returns for shareholders through the cycle. The capital discipline GrainCorp has demonstrated over several years allows us to both return capital and to continue assessing earnings-accretive organic and inorganic growth opportunities to improve GrainCorp’s earnings resilience over time,” Mr Spurway said.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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