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PGG Wrightson says profit up 20 per cent

NZN 1/08/2016 Paul McBeth

PGG Wrightson shares gained 4.5 per cent after it said full-year profit rose about 20 per cent and operating earnings beat guidance, which had already been upgraded on the strength of the horticulture and beef sectors.

The Christchurch-based company on Monday said trading beat expectations "due to a variety of factors" and that operating earnings before interest, tax, depreciation and amortisation exceeded $68 million in the year ended June 30. Wrightson raised its earnings forecast in June, predicting ebitda of between $65m and $68m in the year, though down from $69.6 million in 2015.

It also said net profit was "around 20 per cent up on last year" when the rural services firm reported a profit of $32.7m, implying a bottom line profit of $39.2m for the year ended June 30. The company will formally report earnings on Aug. 9.

"We are still working through the audit process for our full year results and will be better placed to talk to the detail at the time of our results announcement," chief executive Mark Dewdney said in a statement.

"This will be an excellent outcome that the business can be proud of and we look forward to discussing the detail when our results have been finalised in the coming days."

The shares rose 2 cents to 46.5 cents, having gained 7.2 per cent so far this year.

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