Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


PGG Wrightson posts 24% gain in operating income

PGG Wrightson posts 24% gain in operating income on strong sales across the board

By Suze Metherell

Feb. 25 (BusinessDesk) – PGG Wrightson reported an operating earnings gain of 24 percent in the first-half as the rural services firm controlled by China’s Agria Corp achieved growth in all its business units except wool. The shares jumped 6 percent to 44 cents.

Earnings before interest, tax, depreciation and amortisation were $22.3 million in the six months ended Dec. 31, from $18 million in the same period a year earlier. Net profit jumped to $13 million from $4.8 million, reflecting gains made from accounting adjustments of continuing operations including derivatives and biological assets.

The Christchurch-based company expanded its irrigation business, buying Water Dynamics and Aquasec from Switzerland’s Pentair for an undisclosed sum last year. Its PGG Wrightson Water business reported 32 percent sales growth to $33 million from the same comparable period a year earlier.

It also launched an internal ‘One PGW’ strategy in October to streamline its interests, which are divided into retail, livestock, seed & grain and other rural services, which includes PGG Wrightson Water.

Other rural services grew EBITDA by 74 percent to $5.1 million, although earnings from wool declined 42 percent, which the company said reflected farmers reducing sheep numbers following the drought and continued land conversion to dairy. There was significant growth in real estate earnings to $2 million from a break even position of $174,000 a year earlier.

Its livestock division sales slumped 42 percent and earnings rose to $2.7 million from $812,000. The retail division, which includes Rural Supplies and Fruitfed brands, grew sales 12 percent to $297 million, and reported an EBITDA rise of 13 percent to $21 million. Seed & grain revenue rose 17 percent to $255 million and earnings nearly doubled to $12 million.

Last year the company sold its shares in Heartland Bank for $11.2 million, to reduce debt and shift to growth.

The company will pay a dividend of 2 cents a share down from 2.2 cents a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news