PGW
11/08/2015 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS PGG Wrightson Limited
FLLYR: PGW: PGG Wrightson results show sustained momentum
PGG Wrightson Ltd (PGW) today announced its third straight year of earnings
growth with an 18% uplift in Operating EBITDA.
For the year ending 30 June 2015, PGW achieved operating earnings before
interest, tax, depreciation and amortisation (Operating EBITDA excluding
earnings of associates)** of $69.5 million, up from $58.7 million for the
prior financial year. The company also announced that it will pay a fully
imputed dividend of 2 cents per share, which will be paid on 1 October 2015.
This will bring the total fully imputed dividends paid for the year to 4
cents per share.
Chief Executive Mark Dewdney said "This is a very strong result given
challenges facing some sectors of New Zealand agriculture over much of the
year. PGW is not immune to the challenges being experienced in some sectors,
but the diversified portfolio of our agriculture business offers a degree of
protection from cyclical volatility in any individual sector. This is
demonstrated by recently released Statistics NZ data that show dairy exports
declining 24% in the same period that the value of fruit exports reached an
all-time high, up almost 20% from a year earlier.
"Just as importantly, the improvements in operating performance that we are
delivering continue to boost the bottom line and sustain the momentum PGW has
generated in recent years.
"Challenging market conditions in the dairy sector have resulted in reduced
demand for some of our lower margin activity such as grain, fertilizer and
supplementary feed, and this partly explains the flat revenue year on year.
Despite the dairy sector challenge in the second half, most of our individual
business unit financial results have improved. These results come through a
combination of PGW having a clear strategic focus, highly engaged and stable
staff, the strongest product portfolio in the market, backed by deep
technical expertise and a constant focus on building extremely close
relationships with our customers." Mr Dewdney said.
The increase in Operating EBITDA contributed to a net profit after tax of
$32.8 million. "This is lower than last year," Mr Dewdney explained,
"because last year's number benefited from a low effective tax rate and a
number of non-operating gains that weren't repeatable, such as the gain on
sale of our investment in 4Seasons Feeds Limited."
Regarding the larger business units, Operating EBITDA excluding earnings of
associates for Retail increased 7%, Livestock increased 15% and Seed & Grain
increased 19% year on year.
Chairman, Alan Lai said "The Board and I are very pleased with the financial
result, and also with the progress PGW has made on delivering its "One PGW"
strategy. Important milestones such as the recently announced investment in
Agrocentro Uruguay and Grainland in Australia are strengthening our future
growth potential."
In concluding, Mr Dewdney said "The headwinds facing the dairy sector made
increasing this result in the 2016 financial year a genuine stretch target.
Further improvements will be made within the business and we will continue to
look for new growth opportunities. Given the current volatility in a number
of markets, and the need to assess the likely impact of this on PGW's
clients, it is the company's intention to defer providing a forecast for the
current fiscal year until the annual shareholders meeting in October."
Further information:
Mark Dewdney
Ph 027 248 3151
End CA:00268173 For:PGW Type:FLLYR Time:2015-08-11 08:30:57
