The Graincorp Ltd (ASX: GNC) share price is likely to fall this morning after the grains, malt and oils producer warned investors it now expects underlying EBITDA between $65 million to $85 million and a net loss between $70 million to $90 million for the financial year ending September 30, 2019.
GrainCorp CEO, Mark Palmquist, said: “This is an extremely difficult year for GrainCorp due to the significant disruptions we’ve seen in global grain markets, compounded by the drought in eastern Australia. The extraordinary circumstances in eastern Australia are highlighted by the fact we expect to ship 2.3 million tonnes of grain from South and Western Australia to meet east coast domestic demand.”
Graincorp also reported that crop forecasters are now predicting a below average year in 2019/20 due to the east coast drought-like conditions. The malt and oils production businesses are reportedly tracking to forecasts though.
The company also had net debt of $1,744 million as at March 31, 2019.
Shares in Australian Agricultural Company Ltd (ASX: AAC) have also fallen over the past year due to tough weather conditions.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
You can find Tom on Twitter @tommyr345
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- On a serendipitous day, Tom Richardson is leaving the building – December 17, 2019 11:55am
- Why Aerometrex shares have doubled their IPO price – December 16, 2019 4:32pm
- Why the National Veterinary Care share price is going nuts today – December 16, 2019 3:39pm