Agricultural & FMCG

AAC reported 1H24 Operating EBITDA ahead or our expectations at $30.1m. Our Buy rating remains unchanged.

CSS’s AGM highlighted a more sombre trading update than we would have expected, with sales volumes broadly flat YOY and frozen inventories building. We downgrade our rating from Buy to Hold.

Our key commodity call for 2020 is the unwinding of the drought induced dislocation between domestic cattle prices and export meat prices on a normalisation in weather patterns. Our three stocks carry varying degrees of exposure to this dynamic.