Strong retail and irrigation sales has delivered an improved full year result for the rural supplies business PGG Wrightson (PGW).
Photo: 123RF
Key numbers for the 12 months ended June compared to a year ago:
- Net profit $24.3m vs $22.7m
- Operating revenue $952.7m vs $847.8m
- Operating earnings $67.2m vs $56m
- Capital expenditure $16.7m vs $21.1m
[Ll] Final dividend 16 cents per share
PGG Wrightson chief executive Stephen Guerin said its retail and water business, which includes rural supplies, servicing and installation of irrigation, performed "extremely well".
Operating earnings within the retail and water group was $52.5 million, up $15m on the year before.
"Supply chain disruption has continued and has impacted timelines in sourcing products. Being able to get the right products to our clients at the right time has highlighted the importance of the strong relationships we have with our suppliers," Guerin said.
Fruitfed supplies had another "excellent" year, Guerin said, with operating earnings and revenue records.
"We maintain a high market share across most horticultural sector categories and continue to build relationships as a key supplier of winery inputs into the viticulture industry."
He said PGW continued to see significant investment by clients in large horticultural developments.
PGW's agency group, which incorporated the livestock, wool and real estate businesses, saw operating earnings fall $3.3m to $21.8m.
"In particular, the South Island recorded its strongest trading performance in a decade. Solid values were reached in all categories, especially cattle and sheep, which compensated for reduced volumes through meat processors," Guerin said.
PGW chair Joo Hai Lee said the profitable run for most of the country's agricultural sectors looked likely to continue for the remainder of 2022 and 2023.
"However, inflationary pressures on input costs will likely translate into reduced on-farm profits, and exporters will still need to navigate high shipping costs and challenging logistics," Lee said.