Because of difficult trading conditions, PGG Wrighston has foretasted decrease in their profit.

Since most of their business was dependent on the rural sector and the situation there has been difficult, so the condition has reached at this point. Moreover, there has been bad weather spell and above that the farmers are not spending the way they have been doing till now.

The retailer said that earnings for the H1 of this year are 40 per cent lower than they were last year. The good thing is that for the second half there will be no change in the figures at all.

As for the profit, it has said that expectations are that it would lie between $15-18 million. For last year, the profit figure was at $23 million.

Besides that, the termination of its management contract with New Zealand Farming Systems Uruguay has also impacted the financial. The earnings have gone down by $4 million.

However, it has managed to use the money that it generated from stake sale in Kiwi firm. The money was used for reducing its $157 million worth of debt by paying $20 million. The company is now hopeful that another $133 million can be generated by the end of this year.