Ruralco full-year profit halves

Agribusiness says normalisation of seasonal conditions will aid profitability.

Ruralco Holdings (RHL) says its is well placed to return to the profitability of previous years as seasonal conditions normalise, following a halving of its full-year profit in fiscal 2013.

In the year to September 30, Ruralco posted a net profit of $5.74 million, a 59 per cent decrease on the $13.85 million in the previous corresponding period.

The result reflects a slightly better performance than had been flagged by agribusiness last month when it forecast its annual profit would fall in between a breakeven result and a $1 million loss on the back of lower livestock prices and lower sales of agricultural chemicals due to drought.

In the same period, revenue was $1.159 billion, a 2% increase on the $1.136 billion in the prior year.

The group will pay a fully-franked final dividend of 10 cents.

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