United Malt Group (UMG) engages in the production, sale and distribution of malt, hops, yeast and related products to major brewers, craft brewers, distillers and food companies. Here’s why Raymond thinks it should be added to an investor’s portfolio.
“United Malt Group hosted its AGM today,” Raymond said. “While no formal FY22 earnings guidance was provided, we understand that the outlook comments UMG made at its November result still stand,” he added.
“UMG said that its improved second half of 2021 performance provides positive momentum into financial year 2022 and that more positive trends are emerging across its core geographies (particularly North America), as venues start to re‐open.
“Notwithstanding this, short-term challenges remain around managing volatility in freight, barley crop and inflation factors including energy costs.
“UMG is a beneficiary of a lower Australian dollar.
“We maintain our ADD rating on UMG,” Raymond said.
United Malt Group (UMG)
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