Commodity prices were higher but indications were that production might be lower or just steady across the major dairy, lamb and beef sectors, group deputy chairman Trevor Burt said ahead of the company’s annual meeting in Christchurch today.
Wetter conditions around much of the country meant a slower start to the spring sales season, which at this stage was $2 million below this time last year.
The group was confident that ground would be made up as the season progressed.
Operating earnings (Ebitda) in the June 30, 2017 year were $64.5m.
The after-tax profit was $46.3m including $8.74m in capital gains on property sales as part of an overall, one-off gain of $9.5m, Burt said.
With the property sale programme mostly completed, after-tax profit would return to more normalised levels.
A 30% fall would put the after-tax figure around $32.5m.
“It is important to note that it remains early in the financial year to be forecasting, with the vast majority of the year’s trading still ahead.
“PGW’s optimism for the future is not diminished. Earnings are expected to return to growth in 2019.”
The group also said it had engaged financial advisers to help in a strategic review of the business.
It coincided with a change in chief executive from Mark Dewdney, who retired after the annual meeting, to Ian Glasson, who started tomorrow.
The company was in good health and the directors were confident in the group’s management and operations, Burt said.
The review would be at a strategic level looking at the capital structure, assessing what the optimal structure was to position Wrightson to execute on the growth strategies it had.
