Floods hit Wrightson's Uruguay seed-cleaning site

Photo / iStock
Photo / iStock

Agricultural products and services company PGG Wrightson has warned investors that its seed cleaning site in Uruguay has fallen victim to that country's widespread flooding.

The company told shareholders in February that its South American business was expected to perform better between January and June.

But yesterday chief executive Mark Dewdney told the NZX that was no longer the case. "The strength of beef prices gave us reason to believe we would see a recovery in our Uruguayan business at the full year.

"While it remains too soon to quantify the full impact of the current flooding, we are now not expecting to see that full recovery in the current financial year".

Even so, Wrightson kept its outlook for full-year operating earnings before interest, tax, depreciation and amortisation of between $61 million and $67 million, saying it still believed the guidance range was appropriate.

The office and the machine-processing room at the seed-cleaning site near Rosario were hit by flooding.

All staff were safely evacuated after moving as much seed and plant as possible to higher ground.

Dewdney said the physical damage was not expected to be material, but the broader agricultural sector in the country would be hit.

Businesses in NZ and Australia continue to perform well, the company said. But its PGW Water business has been hit by fewer dairy conversions and irrigation upgrades due to the slump in dairy prices.

Shares closed down 0.5c yesterday at 40.5c.

- BusinessDesk

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