PGG Wrightson (PGW) H2 2024 earnings summary

Executive summary

• Revenue declined to NZD 915.9 million, down 6.1% or NZD 59.7 million year-over-year, marking the first drop since FY2018.

• Operating EBITDA for FY2024 was NZD 44.2 million, down from NZD 61.2 million, reflecting margin pressure, higher costs, and challenging sector conditions.

• Net profit after tax (NPAT) was NZD 3.1 million, down from NZD 17.5 million, with a one-off non-cash tax expense of NZD 900,000 due to legislative changes.

• No final dividend was declared for FY2024 due to ongoing sector and economic pressures; dividends paid totaled NZD 7.8 million, down from NZD 21.7 million.

• Directors confirm financial statements present a true and fair view, with an unqualified audit opinion.

Financial highlights

• Operating cash flows increased to NZD 57.7 million, up NZD 32.2 million from the prior year.

• Capital expenditure rose to NZD 22.8 million, mainly for IT improvements and asset acquisitions.

• Net interest-bearing debt was NZD 59.2 million at year-end, a reduction of NZD 6.1 million.

• Gross profit decreased to NZD 235.7 million from NZD 252.8 million.

• Total assets at year-end were NZD 477.6 million, with total liabilities of NZD 312.9 million.

Outlook and guidance

• The rural servicing market in New Zealand is expected to remain subdued in the near term, with moderate growth anticipated over the longer term.

• Inflationary pressures are easing and input costs are stabilizing, but subdued demand for agricultural imports and services is expected to persist short-term.

• MPI forecasts food and fiber export revenue to grow to NZD 67 billion by June 2028.

• Guidance for FY2025 will be provided after the key trading period, at the October 2024 annual shareholder meeting.

• The business is subject to significant seasonality, with first-half earnings weighted to Retail and second-half to Livestock.