Ruralco net profit falls 70% from restructuring and divestments

Company News

by David Chau

Diversified agricultural company, Ruralco Holdings Ltd (ASX:RHL), has announced its full year results ending 30 September 2016.  Ruralco’s revenue increased 10% to $1.8 billion last financial year.

However, the company reported that its NPAT plunged 70% to $4.2 million, compared with its FY15 NPAT (which was $14.1 million).

The company says its profit figure is in line with guidance and that it is satisfied with the result. The fall in profit was due to Ruralco's $14 million restructure in water and live exports, and divestment of its non-core farm machinery business.

Ruralco has declared a fully franked final dividend of 2 cents per share. This brings its full-year dividend to 10 cents per share. Whereas last year, its dividend was 16 cents.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.