FY18 results were strong and supported by a large cotton crop, Morgans notes. However, dry conditions and reduced dam levels will likely reduce the size of the 2019 crop. Morgans makes material downgrades to forecasts as a result.
A significant increase in the 2017 Australian cotton crop has supported a strong first half result, Morgans observes. The larger crop underpinned revenue growth of 38% and an 82% increase in underlying operating earnings.