Ruralco records 11% profit increase

Company News

by Kathy Skantzos

Agribusiness company Ruralco (ASX:RHL) has recorded an 11 per cent increase in underlying gross profit to $334.5 million in its FY2017 results to September.

The underlying EBITDA of $65.4 million is up 58 per cent and includes $6.6 million of earnings from the portfolio of acquisitions executed in the first half of the financial year.

The results reflect growth in the company’s core rural supplies and agency services businesses.

Ruralco’s CEO & Managing Director Travis Dillon said the integration of business acquisitions added scale as well as regional and operational diversity to the network which bolstered the financial year results.

The final dividend was fully franked at 6 cents a share, representing a 52 per cent dividend payout ratio.

Shares in Ruralco (ASX:RHL)are trading 3.46 per cent higher to $2.99.
 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.