PGG Wrightson lifts 1H profit by 55% on retail, ag services

Managing director George Gould

PGG Wrightson, the rural services company controlled by Singapore-based Agria, listed first-half profit by 55 percent on earnings growth from retail and ag services, allowing it to declare a 2.2 cents a share interim dividend.

Profit rose to $4.8 million in the six months ended December 31, from $3.1 million a year earlier, the company says in a statement. Revenue from continuing operations fell to $589 million from $694 million.

Wrightson sold its finance unit to Heartland New Zealand in August 2011 and booked a loss of $3.37 million in the first half of the 2012 that was not repeated in the latest period. Revenue from discontinued operations fell to $1.5 million in the latest half from $13.6 million a year earlier.

The latest results also include $25 million in repayment of loans over the Crafar Farms after the sale of the properties to China's Shanghai Pengxin Group.

Earnings from Wrightson's retail division, which includes Rural Supplies, Fruitfed retail and AgNZ (consulting) rose to $13.4 million from $12.9 million, the company says. Livestock earnings fell to $350,000 from $668,000.

Earnings from other AgriServices, which includes insurance, real estate, wool, irrigation and pumping, AgNZ (training) and South American activities, rose to $1.6 million from $743,000. AgriServices rose to $15.3 million from about $12 million and AgriTech, which includes seeds and gain and animal feeds, fell to $23,000 from $8.9 million.

"The tougher conditions being faced by farmers clearly impact on some areas of our business, but overall our businesses have performed strongly and most have lifted earnings year-on-year," managing director George Gould says.

Wrightson shares last traded at 41 cents and have declined 2.3 percent this year.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Post Comment

4 Comments & Questions

Commenter icon key: Subscriber Verified

Slightly above average performance with operations, but balance sheet looking very strong. Resuming the dividend a very optimistic indicator from George Gould and Sir John Anderson.

Reply
Share

Wow....a 2.2c dividend, fully imputed.
George is The Man !!

Reply
Share

Sir John is doing the great work here divi man, he is the one in control. The 2.2 cent dividend was his initiative for sure.

Reply
Share

Two of the best dividend yielding stocks in the market now are PGW and NZOG. The governance of these companies is outstanding.

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7878 -0.0004 -0.05%
AUD 0.9091 0.0005 0.06%
EUR 0.6356 -0.0003 -0.05%
GBP 0.5032 0.0001 0.02%
HKD 6.1123 -0.0013 -0.02%
JPY 92.8410 0.0020 0.00%

Commods

Commodity Price Change Time
Gold Index 1201.1 7.660 2014-11-21T00:
Oil Brent 78.6 -0.120 2014-11-21T00:
Oil Nymex 76.5 0.690 2014-11-21T00:
Silver Index 16.4 0.260 2014-11-21T00:

Indices

Symbol Open High Last %
NZX 50 5526.9 5526.9 5526.9 -0.56%
NASDAQ 4751.0 4751.6 4701.9 0.24%
DAX 9521.2 9736.1 9484.0 2.62%
DJI 17721.0 17894.8 17719.0 0.51%
FTSE 6678.9 6773.1 6678.9 1.08%
HKSE 23353.7 23508.0 23349.6 0.37%
NI225 17285.7 17381.6 17300.9 0.33%