The rural supplies business PGG Wrightson (PGW) has lifted its full year earnings guidance following better than expected sales over the third quarter.
Good grass cover has resulted in PGG Wrightson's livestock clients in the North Island and Canterbury purchasing more stock. Photo: 123RF
The company now expects its underlying profit for the year ending June to be $66 million, a 6.5 percent increase on the prior forecast of $62m.
It is the third time the company has upgraded its earnings forecast this financial year.
"PGW has continued to see solid demand during the third quarter of the financial year, and this has resulted in a pleasing performance across the majority of our business units," PGW chair Rodger Finlay said.
The company's trading in the three months ended March had exceeded expectations with its retail, livestock and real estate businesses all experiencing solid demand, he said.
Good grass cover had resulted in livestock clients in the North Island and Canterbury purchasing more stock, while wet weather and humid conditions through the end of summer and autumn had led to strong sales of crop supplies and animal health products.
"Our real estate performance has also remained positive with some large kiwifruit orchards sold during March," Finlay said.
The threat of future Covid-19 variants and ongoing supply chain disruptions continued to pose challenges, he added, but the move to the orange traffic light setting and the recent opening of the border to waiver countries "had been welcomed positively".