Agribusiness Ruralco has made a record profit after strong seasonal conditions in Tasmania and the eastern states helped boost sales in its rural supplies business.
Above average livestock and wool prices, an increase in real estate volumes and acquisitions that added to the size and geographical reach of Ruralco's business also contributed to profit growth, the company said.
Ruralco's net profit of $22.4 million for the 12 months to September 30 was up from $4.3 million in the previous year, when the bottom line was weighed down by the restructuring of its live export and water businesses.
Both restructured units posted earnings growth in 2016/17.
"I am pleased our core traditional businesses have again delivered strong organic growth, and there has been a positive turnaround in live export and water retail sales," chief executive Travis Dillon said in a statement.
Ruralco said good rainfall in the eastern states in September and early October should support sales of rural supplies over the next few months.
Cattle prices are expected to ease, returning to historically average prices, though in the short term prices will be largely influenced by seasonal conditions.
"Over the next twelve months management's focus will be to deliver the targeted earnings contributions from the portfolio of acquisitions completed in this calendar year, " Mr Dillon said.
Ruralco shares were up 10 cents, or 3.5 per cent, at $2.99 at 1030 AEDT.
RURALCO POSTS RECORD PROFIT
* Full-year net profit of $22.4m, up from $4.3m
* Revenue up 2pct to $1.83b
* Final dividend up 4 cents to 6 cents, fully franked
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