21 Oct 2014

PGG Wrightson confident on profit

1:27 pm on 21 October 2014

PGG Wrightson says it believes it can produce a higher operating profit this year than last, despite the significant uncertainty caused by the lower forecast milk payout.

Chief executive Mark Dewdney told the annual shareholders' meeting the outlook for his company's core sheep, beef and crops markets is positive.

PGG Wrightson reported $58.7 million in operating profit for the year ended June.

Mr Dewdney said confidence in these key sectors is high and supported by solid prices, a lower New Zealand dollar and, so far at least, good weather.

He said growth in the sheep, beef and crops sectors, as well as in Australia and South America, will be the company's focus and should offset some of the weakness expected from the dairy sector.

Mr Dewdney said spring and autumn are the company's two key periods and it is too early to have high levels of certainty yet about how the year will play out, but the first quarter was strong.