Friday, April 26, 2024

Wrightson can do better despite dairy doldrums

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Rural services company PGG Wrightson believes it can improve on last year’s trading result despite any impact from the forecast lower dairy payout, managing director Mark Dewdney told the annual meeting in Napier.
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The outlook for the core sheep, beef, arable, horticulture and viticulture sectors was positive and helped by solid prices, a lower currency and so far generally good weather.

That should offset any lower revenues from the dairy sector.

Wrightson made operating earnings before interest, tax, and depreciation of $58.7 million in the year ended June 30.

The group had recorded a strong first quarter, ended September 30, in the current year, Dewdney said, and while it was too early for a high level of certainty about full-year earnings, directors believed the 2014 figure could be bettered.

The market would be updated at the time of the release of first half earnings in mid-February.

There had been significant improvement across all aspects of the company, chairman Alan Lai said.

The confidence stemming from that had been one of the reasons behind the increase in dividend.

Important initiatives included expansion of the PGW Water business into the North Island and wholesale supply services, reconfiguring the South American business to focus on the business offering the best returns and long-term prospects and adding 13 new dairy positions to the group’s livestock team, Dewdney said.

Wrightson shares rose 1c to 43c in early NZX trade after the announcements.

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