The strong performance of the agricultural sector has lifted PGG Wrightson's half-year profit to a record level, leading it to raise its dividend and full year forecast.
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The country's biggest rural services company said it had overcome market volatility and disrupted supply chains to make the most of booming agricultural exports.
"Commodity prices in general and across the sector for New Zealand primary exports remain positive," chief executive Steve Guerin said.
"Whilst a degree of volatility in international markets continues with disrupted supply chains, inflationary pressures and a global pandemic, our business is diversified and continues to adapt to our clients' and market needs."
Key numbers (six months ended Dec 2021 vs year ago)
* Net profit: $22.5 million vs $17m
* Revenue: $552m vs $499.4m
* Operating earnings: $47.4m vs $39.6m
* Dividend: 14 cents
Its retail and water business was the strongest performing with earnings up 30 percent as demand increased, and farmers moved to beat price rises and supply delays.
Guerin said the division had moved to lessen supply chain problems and ensure continuity of products.
"The cost of moving products through the supply chain is increasing due to inflated freight charges. To ease the supply chain risks, we have been sourcing products earlier and are carrying more inventory, as well as working closely with our suppliers on product forecasts and availability."
Its livestock selling business had lower earnings because of bad weather and Covid-19 related closures, but real estate sales were remaining strong.
The company raised its forecast full year operating earnings to around $62m from last year's $56m because of the high demand and prices for meat, record dairy payout expectations, and buoyant horticultural export demand.
