At the group level, our operating ebitda for the year to 30 June 2016 will reflect two opposing forces," chief executive Mark Dewdney said. Photo / Sarah Ivey
PGG Wrightson has raised its earnings guidance, saying its retail unit is likely to beat last year's record result, although the rural services firm expects 2017 to be tough.
Earnings before interest, tax, depreciation and amortisation are expected to be between $65 million and $68 million in the year ending
June 30, up from a previous forecast for ebitda of $61 million to $67 million, the Christchurch-based company said in a statement.
That's still down from $69.6 million a year earlier due to the slump in dairy prices eroding farmers' incomes.
Wrightson said its retail unit will beat last year's record operating ebitda with horticulture and beef sectors making up for the dairy downturn, while its seed and grain business will deliver higher earnings as its Australasian customers offset weaker South American results. Wrightson had warned that flooding in Uruguay posed a risk to earnings, but has downgraded its assessment of the threat.
At the group level, our operating ebitda for the year to 30 June 2016 will reflect two opposing forces," chief executive Mark Dewdney said.
