Diversity delivers big profit boost for Ruralco
Townsville AGRIBUSINESS Ruralco has posted a big rise in first- half profit as additional earnings from acquisitions offset cattle price declines and tough trading conditions in its live export business.
The company has delivered a record interim net profit of $ 16.1 million for the six months through to March, up 29 per cent on the same period a year earlier.
“The future farming strategy has delivered diversified earnings across our activities and geographies,” chief executive Travis Dillon said yesterday.
“We have achieved double digit growth by focusing on what we can control and getting the foundation right rather than relying on commodity price movements.
“In particular this half it is pleasing to see the benefits of the diversification strategy at play, with the group able to cycle the tough trading conditions in live export and declining earnings from livestock agency activity as cattle prices continue to soften.”
Despite the profit lift, the company warned that seasonal and market volatility could put pressure on earnings in the second half, which Ruralco will look to offset by diversifying its activities.
Underlying net profit for the first half, which strips out one- off restructuring and costout initiatives, lifted 21 per cent on the prior year to $ 16.7 million. Revenue was up 7 per cent to $ 919.9 million for the period.
The company declared an interim dividend of 9c per share, fully franked, in line with the interim dividend paid last year.