21 Jul 2020

PGG Wrightson expects less earnings in 2020

2:21 pm on 21 July 2020

PGG Wrightson expects slightly softer earnings this year as it has managed to weather the worst of the Covid-19 pandemic.

PGG Wrightson

Photo: Facebook / PGG Wrightson

The rural services company is forecasting full year operating earnings of between $23 million and $24 million, compared to $24.5m a year ago.

"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," company chair Roger Findlay said.

The forecast excludes the effect of new accounting rules for leases.

At the end of March, PGG Wrightson withdrew a forecast of $30m because of uncertainty caused by the pandemic.

Findlay said the result was down to its staff and their efforts to support customers.

He said further details on trading would be given when the company released its full year earnings report in mid August.

The company received nearly $3.7m in wage subsidies, while its real estate offshoot got $430,000.