PGG Wrightson issued an earnings warning following bad weather in New Zealand and Australia and a fall in the value of livestock.
The rural services firm has downgraded its forecast gross earnings for the year to the end of June to the range of $40 million - $48 million compared with $55 million for the same time last year.
The listed company paid a dividend to shareholders for the first time at its half-year results earlier this year.
PGG Wrightson managing director George Gould says there were two main reasons for the lower earnings.
"A substantial decline in average livestock prices year on year - that has been the main negative impact - and the other one is the drought in Australia and New Zealand, particularly Australia."
He says it's been an extremely difficult trading year, with prices dropping 30% compared with last year.
The company says its earnings should improve next year with livestock prices starting to rebound, and it should be in a position to pay a dividend.
At close of trading the company's shares had fallen by more than 10%.
