INDEPENDENT NEWS

PGG Wrightson expects FY19 operating earnings to match

Published: Thu 11 Oct 2018 08:58 PM
PGG Wrightson expects FY19 operating earnings to match prior year's record
By Rebecca Howard
Oct. 11 (BusinessDesk) - PGG Wrightson expects full-year operating earnings to be on par with last year's record, including earnings from the seed and grain business that it is selling to Danish cooperative DLF Seeds
The company said it expects its operating earnings before interest, tax, depreciation and amortisation to June 30, will be approximately $70 million. In August, it said its operating ebitda was a record $70.2 million in the year ended June.
"We are optimistic about the prospects for our trading performance for the year ahead and we have confidence that we can match last year’s performance at an operating ebitda level. It is early days, as the first quarter is traditionally a quiet trading period and we have seen a late start to spring, however, activity has picked up across the business during October," chief executive Ian Glasson said in a statement to the stock exchange.
PGG Wrightson did not provide a forecast stripping out the sale of the seed and grain business. It agreed in August to sell the operation to DLF for $421 million in cash and $18 million of debt repayment. The deal is subject to several conditions, including shareholder and Commerce Commission approval.
Nor did it provide a net profit forecast. It reiterated that a successful sale of the seed and grain business would deliver a "net capital gain of more than $120 million which would flow through NPAT."
Regarding its other business, it said it expects a slightly improved operating ebitda from the retail and water group. It also expects the livestock and wool business to perform well. It did note, however, that New Zealand’s rural real estate market has softened since mid-2017 which has made trading conditions difficult for the real estate business.
It said it is making good progress on a strategic review and will provide the board's recommendation for the sale of the seed and grain business and an independent appraisal report from KordaMentha to shareholders ahead of the Oct. 30 meeting and vote.
The stock fell 4.8 percent to 59 cents in a day when stocks across the bourse were battered. The announcement came out after the close of trading.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

The Narrow Divide: New Poll Shows Tight Political Race For SME Votes
By: MYOB
Further Easing In Monetary Policy Delivered
By: Reserve Bank
Post-lockdown Retail Card Spending Picks Up
By: Statistics New Zealand
Contact delivers for customers, employees and shareholders
By: Contact Energy
OceanaGold Announces Receipt Of WKP Mining Permit
By: OceanaGold
COVID-19 lockdown has widespread effects on labour market
By: Statistics New Zealand
New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3
By: New Zealand Post
Ice-olation For Antarctica New Zealand
By: Antarctica New Zealand
July House Price Index illustrates market resilience
By: QV Valuations
Queenstown Rents Experience Biggest Drop In Seven Years
By: Trade Me Property
The Quiet Earth
By: Auckland University
James Shaw says Kiwibank, not ministers should decide on investors
By: RNZ
Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments
By: Financial Markets Authority
Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off
By: FIRST Union
Stronger Green Voice Needed Next Term To Stop More Mining On Or Under Conservation Land
By: Green Party
View as: DESKTOP | MOBILE © Scoop Media