PGG Wrightson (PGW) H1 2025 earnings summary

Executive summary

• Operating EBITDA for the six months to 31 December 2024 was $41.4 million, up 13% year-over-year, with operating revenue at $570.3 million, a 2% increase, and net profit after tax at $16.0 million, up 25% year-over-year.

• Interim dividend of 2.5 cents per share declared, reflecting renewed confidence and to be paid 3 April 2025.

• Improved returns in Rural Supplies, strong beef demand, and a rebound in real estate supported results.

• Prudent expense control and positive market signals, including lower inflation and easing interest rates, supported performance.

Financial highlights

• Operating EBITDA increased by $4.7 million year-over-year to $41.4 million.

• Operating revenue rose by $9.4 million year-over-year to $570.3 million.

• Net profit after tax grew by $3.2 million year-over-year to $16.0 million.

• Operating cash outflow was $31.0 million, reflecting seasonal working capital build.

• Interim dividend payout resumed at 2.5 cents per share after a period of restraint.

Outlook and guidance

• FY2025 full-year operating EBITDA guidance reaffirmed at around $51 million.

• Economic signals are improving, with lower inflation, interest rates, and higher commodity prices.

• Positive outlook for dairy, beef, sheep meat, and horticultural exports in 2025.

• Cautious optimism for the remainder of the financial year.

• Farm input prices remain elevated due to weak NZD, but sector is well-positioned to meet global demand.