By Joe Hope
Wynnstay Group PLC said Wednesday that it now expects pretax profit for fiscal 2022 to exceed market expectations and for revenue to rise significantly, as fertilizer commodity prices remain abnormally high amid the Ukraine war.
The UK supplier of agricultural products and services didn’t provide a forecast for pretax profit for the year ending Oct. 31, though in fiscal 2021 it recorded a pretax profit of 11 million pounds ($13.8 million).
The company had said on March 22 that its fiscal 2022 performance to date was meeting management views, while fertilizer operations at Glasson, England had continued to experience substantial one-off gains on the back of significant increases in the world prices of natural gases.
Since then, fertilizer prices remained abnormally high, reflecting consequences from Russia’s invasion of Ukraine, including the disruption of supplies from Russia.
Revenue for the year will also be significantly increased by commodity price inflation across all activities, including feed, though operating profit won’t benefit proportionately due to the company’s absolute unit margin model.
Shares at 0735 GMT were up 14.0 pence, or 2.3%, at 620.0 pence.
Write to Joe Hoppe at [email protected]
Credit: www.marketwatch.com /