PGG Wrightson (PGW) H1 2025 earnings summary

Executive summary

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

• Interim dividend of 2.5 cents per share declared, to be paid April 2025, reflecting renewed confidence after a period of restraint.

• Improved returns in Rural Supplies, strong beef demand, and a rebound in Real Estate contributed to performance.

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

Financial highlights

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

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

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

• Operating cash outflow was $31.0 million, up $24.2 million from the prior period due to seasonal working capital increases.

• Net interest-bearing debt increased by $9.8 million to $106.7 million as of 31 December 2024.

Outlook and guidance

• FY25 full-year operating EBITDA guidance reaffirmed at around $51 million.

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

• Dairy, beef, sheepmeat, and horticulture sectors expected to see strong pricing and export demand in 2025.

• Weaker NZ dollar benefits exporters but raises import costs for farm inputs.

• Cautious optimism for the remainder of FY25, with sector well-positioned for global demand.