Its earnings before interest, tax, depreciation and amortisation are expected to be about $70 million, chief executive Ian Glasson said. The 2018 figure was $70.2m.
That will be a strong result, he said.
The guidance is on a same-business basis so includes earnings in the seeds and grain business which is in the process of being sold to DLF Seeds. A completed sale would substantially change the form of the group’s reported earnings, he said.
It is too early to forecast an after-tax profit for the June 30 year but the group has already said if the Seeds sale is completed it will provide a net capital gain of more than $120m.
First quarter trading from July to September is generally the quietest for PGW. Though spring late October has been busier.
After what it called an outstanding trading result in the retail and water business in 2018 a further slight improvement is expected this year, underpinned by Fruitfed’s horticulture activity.
The agency business had a record result last year and livestock and wool are expected to continue performing well but the rural real estate market has become more difficult, Glasson said.
The slower spring was felt in the seed and grain group but recent pick-up provided optimism for the New Zealand operations. Drought in key regions of Australia will affect earnings and there are liquidity issues in the rural sector in Uruguay, likely to mean lower earnings there. The overall result is expected to be in line with the $35.6m division Ebitda last year.
Good progress is being made on the seeds sale to DLF, Wrightson deputy chairman Trevor Burt said. Shareholders will vote on the deal on October 30. It also requires Overseas Investment Office approval.
Wrightson shares fell 2c to 59c on Thursday as part of the wider sharemarket fall and ahead of the guidance report. After the guidance, the shares picked up 1c to 60c in early NZX trading as the overall market fell further.
