PGG Wrightson shares rally after earnings upgrade

PGG Wrightson had a strong third quarter across all its business units. Photo / File

Rural services group PGG Wrightson has raised its full-year operating earnings guidance after experiencing a strong third quarter.

Chairman Rodger Finlay said that following the strong half-year result announced in February, the company had continued to see solid demand.

"On the back of this strong financial performance, the Board has determined to lift our operating EBITDA guidance for the full year from $62 million to around $66m," he said.

"Our third quarter trading has exceeded expectations with Retail, Livestock, and Real Estate all experiencing solid demand."

Wet weather and humid conditions through late summer and autumn had supported robust sales in crop inputs and animal health categories, he said.

PGW's real estate performance had also remained positive with some large Kiwifruit orchards sold during March.

The earnings upgrade drove the company's share price up 28 cents or 7 per cent to $4.24 by midday.

For the June 2021 year, PGW reported operating EBITDA of $56.0m, up 33.0 per cent on the previous year. Its net profit came to $22.7m.