GNC +10%: first half numbers for the agricultural commodities and processing business were better than expected, helped by a bid for United Malt Group (UMG) of which they own ~8.5%. Both the Agricultural and Processing sides of the business beat by similar dollar amounts, with EBITDA of $383m a 40% beat to consensus. The mark-to-market of their investment in United Malt (UMG) boosted profit by ~20%, adding $41m. GrainCorp upgraded EBITDA for FY23 by ~6% to $500-560m as a result of the strong start, 7.5% above consensus at the midpoint. They also upgraded ‘through the cycle’ guidance, reflecting earnings in a ‘normal’ year, by ~30% to $310m on higher oilseed margins, operating leverage and better pass-through of interest costs.
MM is neutral to bullish GNC
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