Australia: United Malt reaffirms previous earnings forecast for financial year 2022
The worlds fourth largest maltster United Malt reaffirmed its previous earnings forecast for financial year 2022 to be in the range of A$115 million to A$140 million, disappointing investors while, underlying EBITDA came in line with Bloomberg consensus of A$57 million, the Finance News Network reported on May 17.
Here are the key metrics compared to the same time a year ago from March:
Net income: A$10.3 million, down 24.3 per cent
Interim dividend per share: 1.5 cents from 2 cents, down 25 per cent
Underlying EBITDA: A$57.3 million, down 5.3 per cent
Revenue: A$651.6 million, up 11 per cent
EBITDA: A$51.5 million, down 3 per cent
Despite pubs reopening and demand on the rise, the Canadian drought impacting barley quality, strained supply chains, rising input costs weigh on the maltster.
Operating cash flow was negative during the first half. Working capital draw was higher reflecting the typical seasonal build up in preparation for second half shipment and due to increased barley and malt inventory costs.
For the next few years, the United expects base capital expenditure to be in the range of about A$55 million to A$60 million, including stay-in-business and safety-related investment in the range of around A$30 million to A$35 million.
In the UK, the company remains focused on servicing the Scottish whisky market which requires quality malt to meet the long-term requirements of distillers to produce aged whisk while expecting incremental EBITDA of about A$18 million on a full year run rate basis to come from their Scottish expansion project.
Despite the downside pressure, the company is optimistic that sales volumes will continue to recover with full year sales volumes to exceed financial year 2021 levels and approach pre-Covid financial year 2019 levels.
Shares in United Malt closed at session low of 1.6 per cent to A$3.95.