Full Year 2026 Pgg Wrightson Ltd Earnings Call Transcript
Key Points
- PGG Wrightson Ltd (NZSE:PGW) reported a 10% increase in operating revenue to $1.1 billion, marking the first time revenue exceeded $1 billion since divestment, and a 15% rise in operating EBITDA to $64.3 million.
- Net profit after tax surged 46% to $15.6 million, with earnings per share up to $0.206, exceeding the company's target.
- The livestock business delivered outstanding results, driven by elevated livestock prices and strong international demand for red meat, contributing significantly to the agency group's 23% EBITDA growth.
- The Nexen acquisition, a strategic reverse integration into animal health, has traded ahead of expectations, with revenue of $8.1 million and net profit after tax of $1 million, and has not deterred other retailers from supporting the brands.
- Operating cash flow improved dramatically to $52.6 million, up $40.2 million, reflecting strong earnings conversion and favorable working capital movements, while the company also achieved a 3.5% reduction in its total recordable injury frequency rate.
- PGG Wrightson Ltd (NZSE:PGW) missed its return on capital target, achieving an average of 8.1% over the three-year rolling cycle versus the 10% goal, impacted by tough market conditions in FY24.
- The Retail & Water segment's EBITDA growth was limited to 6% despite a 10% revenue increase, partly due to an impairment charge on a large receivable, which dampened operating leverage.
- Challenging conditions persist in the horticulture sector, particularly for grapes and wine, with global wine consumption falling 4% annually, leading to reduced demand and lower returns.
- Net debt increased by $2.4 billion (likely a typo for $2.4 million) due to strategic investments like Nexen and growth in the GoStock portfolio, though the company expanded banking facilities to $265 million to support this.
- The outlook for FY27 is uncertain due to risks from geopolitical tensions, supply chain disruptions, elevated input costs, and potential dry conditions (El Nino), which could impact production and customer confidence, leading the company to defer guidance until October.
Goodbye, and welcome to the PGG Wrightson full-year results announcement. (Operator Instructions) I would now like to hand the conference over to Mr. Stephen Guerin, Chief Executive Officer. Please go ahead.
Thank you, Ashley. Good morning, and welcome to the PGG Wrightson results presentation for the financial year to 30th of June 2026. As Ashley has introduced, I am Stephen Guerin, the Chief Executive Officer for PGG Wrightson (inaudible) today to provide a brief overview of our results for the financial year to June 2026. With me on this webcast are Peter Scott, our CFO; and Julian Daly, our General Manager of Corporate Fields, who is also the Company Secretary.
During the call today, I will cover year's financial results, our trading performance key themes and initiatives and some thoughts on the year ahead. There will be some time for questions at the end of the call, both on the telephone call and via the new technology we're using today. For guys who are on the webcast and the slide and
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