PGG Wrightson's decision to write off goodwill of $321.1 million has seen it report a $306.5 million loss for the year to June 30.
In a statement, the company said the goodwill largely arose as an accounting entry from the 2005 merger of Pyne Gould Guinness and Wrightson.
Various factors, including the company's share price, slower-than-expected recovery and a range of external variables, led to the board's decision.
Ignoring the write-down, a profit of $14.6 million would have been posted compared to last year's profit of $24.5 million.
The decision to write off goodwill would have no impact on the company's operations, chairman Sir John Anderson said in a statement.
''The investment market currently does not attribute value to the goodwill and writing it down has no effect on the company's day-to-day business or banking arrangements and no bearing on our ability to generate cash or on our dividend policy,'' he said.
The company expected to see continued improvement in the fundamental performance of the business through 2013-14, based on stronger agricultural commodity prices and assuming a return to normal conditions on farm, he said.
The company's operating earnings before interest, tax and depreciating of $45.8 million was down on the previous year's result of $55.2 million, but within its profit guidance range announced in May.
New chief executive Mark Dewdney said the operating result was a solid achievement. Drought in the North Island and parts of Australia, as well as reduced prices for key agricultural commodities, made late-autumn trading conditions challenging and the company's business units experienced ''varying fortunes'' in the year to June.
The company's retail, wool and irrigation businesses performed strongly with improved market share across various key categories, while livestock, real estate, seeds and grain faced challenges.
The result was slightly ahead of Forsyth Barr's ebitda forecast of $43.4 million. One of the disappointing aspects was that net debt was still about $100 million and in line with the first half of 2013, broker Peter Young said.
A dividend of 2.2c per share was paid in March and a further fully imputed divided of 1c per share would be paid to shareholders next month.
Given challenging trading conditions, that was a positive indication of outlook for the next 12 months, Mr Young said.
