Tuesday, 22 October 2024 09:55

Start of a turnaround?

Written by  Sudesh Kissun
Seeka chief executive Michael Franks. Seeka chief executive Michael Franks.

In another sign of improving agribusiness sentiment, two listed companies have lifted their forecast earnings for the year.

Fruit grower and trader Seeka expects forecast full year earnings guidance at a profit before tax level of between $21 million and $25m. The forecast range compares to a loss of $21m last year.

Rural trader PGG Wrightson is forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $51m for year ending June 2025, compared to $44m last year.

The company says that while sheep farmers are facing challenging market conditions with soft returns, there are however some positive indicators suggesting the start of a turnaround, including good quality yields in the horticulture sector.

Seeka, a major player in the hort sector, attributes its improved forecast to a clear strategy, excellent fruit quality and performance, efficiencies and margins across the business. The turnaround has prompted Seeka to declare a dividend of 10c/share to be paid on January 25, 2025.

Seeka chief executive Michael Franks notes that a full year dividend is normally paid in April.

This year the full year dividend has been varied to provide a quicker restoration of dividends and provide an earlier return on investment to Seeka's shareholders, he says.


 Read More


Franks says the company has achieved a good year.

Over at PGW, chair Garry Moore notes that the rural servicing market in New Zealand remains relatively challenged.

"Geopolitical tensions are contributing to cautiousness in the market and a slower than expected recovery in New Zealand's key export market. China continues to dampen commodity prices," he adds.

Sheep farmers are facing challenging market conditions with soft returns. Flock numbers are estimated to have reduced by 4.3%, down to 23.3 million. However, he notes confidence returning to the dairy sector with Fonterra and other processors forecasting a milk price of $9/kgMS for the season.

 

 

More like this

Featured

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.

B+LNZ launches AI assistant for farmers

Beef + Lamb New Zealand has launched an AI-powered digital assistant to help farmers using the B+LNZ Knowledge Hub to create tailored answers and resources for their farming businesses.

National

Machinery & Products

Tech might take time

Agritech Unleashed – a one-day event held recently at Mystery Creek, near Hamilton – focused on technology as an ‘enabler’…

John Deere acquires GUSS Automation

John Deere has announced the full acquisition of GUSS Automation, LLC, a globally recognised leader in supervised high-value crop autonomy,…

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards,…

» Latest Print Issues Online

The Hound

A step too far

OPINION: For years, the ironically named Dr Mike Joy has used his position at Victoria University to wage an activist-style…

Save us from SAFE

OPINION: A mate of yours truly has had an absolute gutsful of the activist group SAFE.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter