Ruralco expects up to 20% growth in FY11 profit

Ruralco expects up to 20% growth in FY11 profit

Agribusiness Ruralco (ASX:RHL) expects to report an up to 20% increase in profit for the year ending in September.

The company had reported a full-year profit of $12.1 million in the prior year.

Managing director John Maher said that a strong operational performance had helped to counteract “interruptions from floods in Queensland, Cyclone Yasi [and] the Indonesian live cattle export ban.”

The company estimates underlying profit growth of an even higher 20% to 25%.

But Maher said earnings were impacted by “some softening of commodity prices” during the second half of its financial year, as well as expected provisioning for doubtful debts.

“Nevertheless, good momentum for most business units augurs well for the group as we move into FY12,” he said.

Ruralco recently established a new rural supplies and irrigation services joint venture with Wamuran Co-Op, Suncoast Rural, and recently acquired BGA AgriServices and made several other minor M&&As.

RHL shares stayed flat on Wednesday at $3.350, after climbing 7.37% the day before.

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Tags agricultureindonesianatural disasterGuidanceJohn MaherRuralcoASX:RHL

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