Rural focus pays off for Wrightson
PGG Wrightson's focus on its core rural businesses has paid off, with the firm's books returning back to the black thanks to improved performances from it rural supplies and livestock divisions.
The rural services provider posted a net profit of $24.5 million for the year ending June 30, up from a net loss of $30.7m in the previous year. The result was shy of the $25.4m consensus forecast and Forsyth Barr's estimate of a $26.2m profit.
The firm's operating revenues rose by 7.2 per cent to $1.3 billion, boosted by improved performances from the firm's livestock, retail and real estate operations as well as reintegration of wool brokerage into the business.
The one soft spot was Wrightson's seeds business, which was hit by one of the wettest Australian seasons on record, although the firm said it still demonstrated earnings momentum.