When farmers are confident, they spend more on agricultural goods - much to the benefit of Wynnstay (WYN). Feed sales, both direct-to-farm and through Wynnstay’s agricultural retail stores, have been better than expected in recent months. As a result, the company now expects to beat market forecasts for both pre-tax profits and EPS at its upcoming full-year results.
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The hot summer weather limited grass and hay availability, resulting in stronger farmer demand for feed, fertiliser, and seeds. Management also said the integration and turnaround of the Countrywide Farmers stores it bought from administrators is “proceeding to plan” and that they are expected to make a positive contribution to 2019 results.
