“Although this is a good start to the financial year it remains early days with the peak of the busy spring trading period still ahead of us,” he said to shareholders gathered in Marlborough.
Chair Rodger Finlay says the directors were forecasting the company would deliver operating earnings before interest, tax, depreciation and amortization (Ebitda) of $52 million.
This would be a healthy increase of 30% on the FY2020 result.
“We are seeing good demand in our Rural Supplies and Fruitfed Supplies retail businesses over the early spring trading period,” he said.
“Livestock trading volumes have been sound with sale yard throughput bouncing back after the covid-19 closures and increased meat processing capacity.
“There has also been a recent uptick in the rural and lifestyle real estate sectors with increased buyer interest.
“Conversely, the wool market remains challenging and it is still early in the trading
year with several critical crop growing months ahead of us along with the peak livestock
trading window in the second half.”
Finlay says the trading performance would be updated at the release of the first-half results in February.
The directors expected to be able to resume regular payment of dividends and have indicated that an interim of not less than 8c would be possible if current trading continues.
