GRAIN exporter GrainCorp has listed the North American craft beer sector as a factor in an improved earnings guidance notice for 2018.
In a notice released this week, GrainCorp lifted its earnings guidance for the year ending 30 September 2018 to $255-$270m underlying EBITDA and $60-$75m underlying NPAT.
GrainCorp managing director and chief executive Mark Palmquist said the company benefited from the “positive performance” of the global malt business and its strong market position in the North American craft beer sector.
Mr Palmquist said the international grain trading book and liquid terminals businesses also performed strongly and they had made good progress in the foods unit within GrainCorp Oils.
However, the grains business was described as experiencing “ongoing challenging operating conditions in eastern Australia”.
“The benefits of our diversified business model are again being demonstrated in the face of the substantial drought challenges in eastern Australia,” Mr Palmquist said.
“These conditions have slowed export volumes as farmers and the domestic market move to secure supplies.”
According to GrainCorp, in eastern Australia the 2017/18 crop was below average and skewed to the south, restricting exports.
Despite tightness in supply, GrainCorp was said to have benefited from the integration of its storage and handling and trading businesses prior to harvest.