30/03/2023 09:30

Australian Food businesses are back on the menu

United Malt (UMG) surged over 30% after the $1.38bn NSW-based commercial malt operator received a takeover bid from European suitor Malteries Soufflet. We felt the $5 all-cash bid was a solid one although some investors are still questioning if it’s enough.

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17/11/2022 09:36

United Malt Grp Ltd (UMG) $3.12

UMG is another stock in the sector that’s trading below its listing price, in August the company delivered a major downgrade of over 22% on top-end EBITDA which took the stock below $3 for the 1st time and it’s basically still there. The company has struggled with poor quality / high-cost North American barley which is flowing down into higher...

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02/08/2022 09:24

Do Food companies make sense after United Malt Groups (UMG) downgrade?

Yesterday we saw commercial malt business UMG, which was previously demerged from GrainCorp (GNC), tumble over -17% to fresh all-time lows following a major earnings downgrade. They’re now targeting a top-end EBITDA of $108mn, over 22% below their previous top-end $140mn guidance. The company has struggled with poor quality / high-cost North American...

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01/08/2022 17:23

United Malt (UMG) $3.04

UMG -17.17%: fell sharply today hitting a new all-time low in the process following a big earnings downgrade. They now see $100 million to $108 million on underlying EBITDA versus the previously guided range of  $115 million to $140 million. The main issue being the cost and poor quality of domestically-sourced North American barley which is resulting in increased production costs and a reduction in margins. They had flagged an improvement in the 2nd half but alas, we’re not yet seeing it.

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