United Malt Group Limited (ASX: UMG) has provided a trading update on expected earnings for the half-year ending 31 March 2023 and maintains its earnings guidance for the full year. The company expects underlying EBITDA for 1HFY23 to be around AU$51 million, lower than previous guidance of AU$ 58-66 million, due to lower than anticipated sales volumes and the delayed start of its Inverness facility. The company successfully started production at the facility in March 2023, but the two-month delay reduced anticipated sales volumes in the first half, resulting in an EBITDA impact of approximately AU$3 million.
One-off costs have also impacted EBITDA, including an approximate AU$5.6 million impact from closing out ineffective currency hedges and restructuring costs of AU$2 million. The company expects SaaS costs for 1HFY23 to be approximately AU$6.8 million, higher than previously anticipated. The company maintains its earlier guidance for FY23, with underlying EBITDA to be in the range of AU$140-160 million, assuming no further material decline in market conditions and continued gross margin improvements.
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