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- Release Date: 27/02/13 10:30
- Summary: HALFYR: PGW: Half Year Results for period ended 31 Dec 2012
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PGW
27/02/2013 08:30
HALFYR
REL: 0830 HRS PGG Wrightson Limited
HALFYR: PGW: Half Year Results for period ended 31 Dec 2012
PGG Wrightson Reports Improved First Half Result
PGG Wrightson Limited (NZX:PGW) today announced an increased profit of $4.8
million for the six months to 31 December 2012, up from $3.1 million a year
ago. PGW also reported strong cash flows from operating and investing
activities, delivering a combined total of $24.4 million (up from $6.0
million last year). This result follows a strong profit for the full year to
30 June 2012 announced last August and has allowed the company to halve its
net debt position over the course of the last 12 months. PGW Managing
Director, George Gould, credited the improvement to stronger operating
earnings across all major businesses along with working capital efficiencies
and collection of the Crafar Farms debt in December.
In line with the dividend policy announced in December, directors have
declared a fully imputed dividend of 2.2 cents per share which will be paid
to shareholders registered at the record date of 14 March 2013. The dividend
will be paid on 28 March 2013.
Mr Gould said that the improved earnings reflected strong operating
performance across all major activities of the company. "The tougher
conditions being faced by farmers clearly impact on some areas of our
business, but overall our businesses have performed strongly and most have
lifted earnings year-on-year," Mr Gould said.
"We are especially pleased with the performance of our New Zealand Seed,
Retail, Wool and Irrigation & Pumping businesses - all of which showed
sizeable gains."
Mr Gould said he was pleased with progress being made in PGG Wrightson Rural
Supplies and Fruitfed Supplies, both being retail businesses facing intense
competition from farmer owned co-operatives.
"Our job is to add value to our farmer clients, helping them make their
farming businesses more profitable. If we do add value, there is worthwhile
margin for us, and the track record shows we are achieving success on this
front."
"It's about having the best rural servicing reps across all businesses, in
every region throughout New Zealand."
"While our trading businesses such as Livestock, Grain and Real Estate are
more susceptible to overall market conditions, their underlying performance
remains solid. In Livestock, our tallies remain broadly in-line with last
year but the decline in sheep and deer values impacted on earnings."
"Our investment in R&D continues to underpin the performance of our Seeds
businesses and we achieved outstanding growth in sales from the newly
launched CleanCrop(TM) Brassica system and continue to see strong growth from
the AR37 range of rye-grass seeds. Confirmation last week of arrangements
for the Primary Growth Partnership for Seed and Nutritional Technology
Development were positive and will be valuable in further enhancing our R&D
programmes."
Revenue for the Retail business is not directly comparable to last year due
to a move to transacting some categories as an agent rather than a principal.
This did not impact on profit but resulted in a $91.2 million reduction in
stated revenue.
For more information, please contact:
George Gould, Managing Director | +64 21 220 2342
Email: Corporate Communications | [email protected]
End CA:00233475 For:PGW Type:HALFYR Time:2013-02-27 08:30:22
