9 Aug 2016

Boost to PGG's profits

11:17 am on 9 August 2016

Rural services company PGG Wrightson has reported a 21 percent rise in profit on gains from asset sales and a lower tax bill.

The company has kicked off the annual listed company reporting season with a net after tax profit of $39.6 million for the 12 months ended June, compared with $32.7m last year.

PGG Wrightson's revenue was marginally lower at $1.18 billion, but expenses were markedly lower boosting the bottom line.

The company's chief executive, Mark Dewdney, said the result was "outstanding" given a much tougher market environment, and it would be difficult to repeat it in the coming year.

"Repeating this operating EBITDA (earnings before interest, tax, depreciation and amortisation) result next year will again be a stretch target given current market conditions, but we will give it our best shot."

The company's seeds and retail businesses showed the strongest gains, while those parts exposed to the weak dairy sector fared the worst.

The company declared a final dividend of two cents a share.

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