PGG Wrightson sees steady earnings, despite Covid-19

PGG Wrightson expects to report steady earnings for the June year, despite the Covid-19 pandemic. Photo / Supplied.

Rural services firm PGG Wrightson, which paid its workers $3.67 million from the Government's Covid-19 wage subsidy scheme, says it expects to report steady operating earnings for the June financial year.

The company has forecast operating earnings before interest, tax, depreciation and amortisation of $23m to $24m for the year, compared with $24.4m in the previous financial year.

The forecast excludes the application of the new accounting lease standard, NZ IFRS 16.

Chairman Rodger Finlay said it was pleasing financial result in what had been an extraordinary year.

"To record a trading performance similar to last year in these circumstances demonstrates remarkable resilience given the very challenging operating conditions we have seen over the second half of the year including a global pandemic," he said in a statement.

"The business has responded to these challenges and has performed well through our dedicated staff who have risen to the challenges and supported our customers and the sector through the lock-down and the various alert levels we have seen over recent months."

PGG Wrightson expects to report its result on August 18.

According to the Ministry of Social Development website, PGG Wrightson received $3.67m for 549 of its workers from the wage subsidy scheme.

In April, PGG Wrightson said Beijing Holdings BAIC Ltd had acquired about 6.8 million shares in the company, giving it a 9.02 per cent stake.

In its most recent disclosure, BAIC said its stake had risen to 11.1 per cent.

BAIC is a Hong Kong domiciled investment company that has interests in international agricultural and food investments.

The company is ultimately owned and controlled by Beijing Capital Agribusiness and Foods Group (BCAG).

PGG Wrightson shares last traded at $2.99, having rallied by 26 per cent over the past 12 months.