Ruralco profit slumps 47%
November 23, 2009
Ruralco Holdings Limited (RHL) said profit for the full year to 30 September slumped 47% to $8.5 million from the previous corresponding period. Despite the downturn, the company predicted better times ahead as trading conditions improve and strong winter rainfall boosts crops.
Looking at the current results, managing director, John Maher said the company’s results were within the previous guidance offered, while the underlying net profit after tax and before significant items was $11.2 million, down 32% though still ahead of expectations.
Mr Maher attributed the result to difficult growing conditions and a slump in demand for core products.
“A reduction in world dairy prices significantly impacted the Stock Feed, Seed and Grain operations and the profitability of its dairy customers resulting in decreased demand for its products and services,” Mr Maher said.
”Real estate markets were generally depressed and, while there has been some recent increase in activity across property markets, results are yet to return to the previous year’s levels.”
At 1058 AEDT, Ruralco shares were trading flat at $2.40.
Looking at the current results, managing director, John Maher said the company’s results were within the previous guidance offered, while the underlying net profit after tax and before significant items was $11.2 million, down 32% though still ahead of expectations.
Mr Maher attributed the result to difficult growing conditions and a slump in demand for core products.
“A reduction in world dairy prices significantly impacted the Stock Feed, Seed and Grain operations and the profitability of its dairy customers resulting in decreased demand for its products and services,” Mr Maher said.
”Real estate markets were generally depressed and, while there has been some recent increase in activity across property markets, results are yet to return to the previous year’s levels.”
At 1058 AEDT, Ruralco shares were trading flat at $2.40.
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