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Uruguay Investor revenue tops $1b after dairy boom

5:00AM Wednesday August 20, 2008
By Owen Hembry

Craig Norgate says that improvements were achieved over every area of PGG Wrightson’s business. Photo / Martin Sykes

Revenue at PGG Wrightson has topped a billion dollars and the rural services business says the global outlook for agriculture is strong.

Revenue for the year ending June 30 was $1.22 billion, up from $948.6 million the previous year. Net profit was up more than 80 per cent to $73.2 million.

Chairman Craig Norgate was one of the brains behind the merger of Pyne Gould Guinness and Wrightson in 2005 and became chairman at last year’s annual meeting.

The merger had delivered, Norgate said.

“The company’s now executing very well across the business and is beginning to provide industry leadership.

“Performance improvements were achieved by each of our divisions despite the impact of long periods of dry weather, adverse exchange rates and poor returns to sheep and beef farmers.”

A more comparative measure of profit excluding capital gains, one-off items and a new earnings stream from NZ Farming Systems Uruguay, was up 35 per cent to $39.2 million, the company said.

 

 

NZ Farming Systems Uruguay was set up by PGG Wrightson to develop dairy-farm operations in Uruguay and floated on the NZX in December.

PGG Wrightson holds the fund and farm manager contracts for NZ Farming Systems, and was paid a performance fee of $17.8 million for the year.

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