Around 920,000 bales of cotton have been ginned across Namoi Cotton Limited’s gins in Australia for the 2024 season.
The Australian ginner confirmed this is around 100,000 bales less than last season, which recorded a ginning volume of 1.16 million, and below the expected volume of 1.05 million.
“Ginning should be completed in mid-October 2024 following an extended season for our southern gins,” Namoi reported.
Despite the lower ginning volume, Namoi Cotton expects FY2025 financial performance to be similar to FY2024.
“The company is expecting an underlying EBITDA of $26-29 million in FY20253 excluding $3.5 million in estimated transaction expenses related to the potential change of control transactions,” the company continued.
“Overall financial performance has been positively supported by improved cost management and Cottonseed Marketing despite the negative impact on Ginning and Supply Chain margin due to increased energy costs and rainfall during picking that interrupted the delivery of cotton and lowering cotton quality.
“As announced on 30 July 2024, above-average rain and dam water storage levels in most of our production valleys is expected to support above-average planting for the 2025 season.
“The latest 2025 season forecast for Australian cotton production is around 5 million bales, similar to this 2024 season.”
The latest update comes as Namoi Cotton Limited fields two takeover offers from two different global agricultural firms, Louis Dreyfus Company and Olam Agri. Namoi is calling on shareholders to accept the Olam Agri offer.