PGG Wrightson chair Rodger Finlay forecasts the company will be able to back up a good year for earnings.
PGG Wrightson says it is trading well and the directors have made an operating earnings guidance for the 2022 financial year of $53 million, before interest, tax, depreciation and amortisation (Ebitda).
Chair Rodger Finlay says despite being only three months into the financial year, spring trading expectations are high in retail sales.
He issued a guidance on what was scheduled to be the day of the company’s annual meeting, to be held in Napier, but postponed because of covid travel restrictions.
“While the biggest trading months are ahead of us, it is pleasing to see positive early signs from the confidence shown by farmers and growers as they gear up for their production needs,” Finlay said.
The livestock business has been subject to operating restrictions, but strong schedule pricing for beef and sheepmeat is expected to stick around for the rest of the season.
“Pricing for crossbred wool remains subdued while our real estate business continues to perform well, but with fewer lifestyle and residential listings,” he said.
“The ongoing uncertainties from covid-19 and related operating restrictions, supply chain disruption and consequential market impacts continue to be a reason to be cautious about earnings projections.”
Nevertheless, the guidance of $53m would be close to repeating the FY21 Ebitda of $56m, which was up 33% on the year before.
