Half Year Results Announcement
27 February 2018
PGG Wrightson delivers impressive first half performance
PGG Wrightson Ltd* (PGW) announced today that at the half-year it is on track to surpass last year’s strong
operating result.
For the half year ending 31 December 2017 operating earnings before interest, tax, depreciation and amortisation
(Operating EBITDA)** of $34.2 million were up $8.2 million on the prior corresponding period ($26.0 million) and
is PGW’s best first half result in a decade. Net profit after tax was $14.6 million, $0.4 million lower than the same
period last year due in part to movement in the New Zealand dollar.
PGW Chairman Alan Lai said, “We advised in October last year that against a backdrop of higher commodity
prices, lower agricultural production and a delayed start to spring we expected our Operating EBITDA to be at a
similar level to 2017. It is pleasing to be able to report that the business has achieved a first half performance at
an Operating EBITDA level that is stronger than last year. Furthermore, we expect this strength to continue and
anticipate Operating EBITDA to exceed 2017’s result and be in a $65 million to $70 million range. Previously we
also expected that net profit after tax (NPAT) for FY2018 would be approximately 30 percent lower than FY2017
due to a reduction in gains on property sales given that our divestment programme is now largely complete. With
this stronger trading performance we now expect NPAT to be approximately 20 percent lower.
PGW’s Board declared an interim dividend of 1.75 cents per share, which will be paid to shareholders registered
at the record date of 16 March 2018. The dividend will be fully imputed and paid to shareholders on 5 April 2018.
PGW Chief Executive Ian Glasson noted, “This is a very pleasing result for the first half. We have a highly-
engaged team who continue to deliver good results through the market cycles and weather variability that impact
the agri-sector. The lift in Operating EBITDA on this time last year is heartening and puts us in a strong position
as we move into the second half. This performance was achieved with most of our businesses trading well through
the first half.
“The Agency group delivered an excellent result with a more than two-fold increase in Operating EBITDA. The
Livestock business benefited from strong international demand for protein and reduced tallies which combined to
push up livestock prices across New Zealand. In addition, our Livestock supply chain products continue to perform
well. There was an improved performance by our Wool procurement and brokering business despite reduced
demand for global crossbred wool. The Real Estate business had a challenging first six months but maintained
market share and remains well positioned when market conditions improve.
“The Retail and Water group performed superbly with a 25 percent increase in Operating EBITDA over the same
period last year and was largely built on the operating performance in our Retail business.
“The Retail business performed extremely well during a period when they look to deliver more than 85 percent of
their full year Operating EBITDA. It was pleasing to see that they finished with Operating EBITDA higher than the
same period last year despite some challenges with weather. Wet growing conditions in spring were followed by
dry conditions in November and December. The impact on horticulture was the advance of harvest dates. This
resulted in spray programme applications being brought forward and as a consequence some of the sales that
were planned for January occurred during December. All three Retail business areas (Rural Supplies, Fruitfed
Supplies and Agritrade) contributed to the pleasing result.
“The Water business continues to be challenged by the lack of on farm development. Despite this, the business
is seeing a number of opportunities come to fruition, such as the successful tendering to supply irrigation to the
Royal Auckland and Grange Golf Club, and Millbrook developments.
$
34.2m
$
14.6m
1.75
Per Share,
Fully Imputed
“Seed and Grain performed well increasing Operating EBITDA by $2.2 million over the same period last year.
“The New Zealand Seed and Grain business had a strong result due to favourable weather conditions in spring,
compared to the same period last year. Recovery in the grain and forage seeds market along with a lift in
performance in international shipments due to high yields resulted in an increased Operating EBITDA in New
Zealand.
“However, a reduction in spring sales increased closing inventory levels in both the Australian and South American
businesses. Initiatives are in place to alleviate working capital demands across the Seed and Grain group and
we expect that to improve as the Australian business performance is traditionally focused in the second six months
of the financial year.
“The Seed and Grain group’s continued investment in research and development was highlighted in spring with
the launch of our environmentally functional programme, NSentinel 4, which includes our new plantain product,
Ecotain. We also had impressive demand for the first full commercial year of our Raphanobrassica product.
“Net cash outflows from operating activities was $49.8 million up from $16.2 million on the same period last
year. Receivables increased largely as a result of the continued success of our Go range of livestock products
and the weather-driven seasonal delay in planting, which pushed our seasonal peak in working capital closer to
December than usual. However, due to our continued focus on cash management, we have seen good collections
in January and February. We continue to invest into the business to improve facilities and operating systems,
and we continue to foresee growth in our Go products. Currently we expect year end debt levels in June to be
approximately $30 million higher than June 2017 due to increased working capital across Seed and Grain, Retail
and Water, and Go livestock receivables. Much of the growth in debt over the last two years can be attributed to
our working capital investment in Go product receivables that are proving to be popular for both our clients and
profitable for the company. If you exclude the effect of Go products from our net interest-bearing debt you will
see that our debt as at December 2017 is within a few million dollars of our debt levels as at December 2015,”
said Ian Glasson.
In October it was announced that the Board had made a joint appointment of Credit Suisse (Australia) Ltd and
First NZ Capital Ltd as financial advisers to assist with a strategic review of PGW’s business, its growth
opportunities, capital and balance sheet requirements, and potentially shareholding structure. PGW Chairman
Alan Lai noted that “the review remains ongoing and it is hoped that the Company will be in a position to comment
further on outcomes from this work later in the year”.
Ian Glasson noted, “As PGW enters the second half of the financial year, we do so with confidence. We remain
optimistic that the positive trading environment will continue through the second half of the year in New Zealand,
but as always, across all markets, we wait to see what autumn conditions will bring and how these will impact our
business as we move into the key planting and harvesting periods. In particular, our Australian and South
American business are dependent on favourable autumn weather conditions.
“Dairy price expectations for the season have softened but are still ahead of this time last year. Milk production
companies are expecting production to fall for the remainder of their season. We have seen some increase in
confidence in the dairy market but activity is still constrained as dairy farmers remain cautious in their decision
making.
“We expect continued strong lamb and beef commodity demand and pricing. This is buoyed in part by good feed
supply across the country, except for Southland and parts of Otago where drought was officially declared in late
January. Our staff continue to work alongside local rural support and industry groups to assist customers in all
drought-affected areas who remain impacted despite recent rain events.
“Crossbred wool prices have stabilised at low levels and growers are starting to meet the market and with inventory
beginning to move through auctions again. The demand for fine wool is heartening and we are making gains in
that market with international supply chain contracts increasing.
“The second six trading months for the Retail and Water group are always lower revenue months which reflect
the role the business has in farm activity at that time of the year. The excellent result delivered by the Fruitfed
horticulture business in the first half of the financial year is set to continue with large-scale grape, kiwifruit, apple
and avocado producers experiencing favourable returns and forging ahead with extensive development. The
added benefit of this customer investment to our business is the increase in sales in fencing, machinery,
horticulture merchandise, water and irrigation categories.
“The outlook for the Seed and Grain group remains positive for the second half of the financial year. Subject to
favourable autumn planting and climatic conditions in our key market, we expect these businesses to deliver good
second half results. The South America business continues to recover from the impact of the devastating floods
of 2016.
“Of course, as a business we cannot continue to perform well without a highly-engaged team. When I joined
PGW last year, I was immediately impressed with the commitment and passion for agriculture that our staff
display. I have visited customers and our staff in the field and I see many examples of the enduring relationships
our people have with our customers. We share our expertise and are invested in our customers’ performance.
“With this in mind, along with confidence in continued positive market conditions, I believe we are on track to
deliver a full-year operating result to surpass last year at an Operating EBITDA level. Much of the earnings of our
South American, Australian and Livestock businesses won’t be certain until later in the financial year, but currently
we expect FY2018 Operating EBITDA to be in the $65 million to $70 million range and NPAT to be approximately
20 percent lower than last year,” concluded Ian Glasson.
Ian Glasson
Chief Executive Officer
PGG Wrightson Limited
*All references to PGG Wrightson Limited or the Group refer to the Company, its subsidiaries and interests in associates and jointly
controlled entities.
**Disclosure Statement: Non-GAAP profit reporting measures:
PGW’s standard profit measure prepared under New Zealand GAAP is “Net profit after tax”. PGW has used non-GAAP profit measures
when discussing financial performance in this document. The directors and management believe that these measures provide useful
information as they are used internally to evaluate performance of business units, to establish operational goals and to allocate
resources. They also represent some of the performance measures required by PGW’s debt providers. For a more comprehensive
discussion on the use of non-GAAP profit measures, please refer to the policy “Non-GAAP Accounting Information” available on our
website (www.pggwrightson.co.nz
).
Non-GAAP profit measures are not prepared in accordance with NZ IFRS and are not uniformly defined, therefore the non-GAAP profit
measures reported in this document may not be comparable with those that other companies report and should not be viewed in isolation
or considered as a substitute for measures reported by PGW in accordance with NZ IFRS.
PGW’s definition of non-GAAP profit measures used in this document:
Operating EBITDA: Earnings before net interest and finance costs, income tax, depreciation, amortisation, the results from discontinued
operations, fair value adjustments and non-operating items.
GAAP to non-GAAP reconciliation:
($m) Dec
2017
Jun
2017
Dec
2016
Net Profit after Tax (GAAP) 14.6 46.3 15.0
Add (Profit)/loss from discontinued operations (net of income tax) 0.0 (0.0) (0.0)
Add Income tax expense 6.6 10.4 4.6
Add Net interest and finance costs 8.0 6.2 1.5
Add Depreciation and amortisation expense 6.1 10.7 5.2
Add Fair value adjustments expense / (income) 0.1 0.4 0.3
Add Non-operating items expense / (income) (1.3) (9.5) (0.5)
Operating EBITDA 34.2 64.5 26.0
---
PB | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 1
15,000 lambs and ewes on the move
in the Airies Station sheep yards, near
Burkes Pass, February 2018.
The financial statements contained
on pages 2– 19 have been approved
by the Board of Directors on
26 February 2018.
Alan Lai
Chairman
Bruce Irvine
Director and Audit
Committee Chairman
for the six months ended 31 December 2017
Key
Financial
Disclosures
2 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 32 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 3
KEY FINANCIAL DISCLOSURES
UNAUDITED AUDITED UNAUDITED
D
EC 2017
J
UN 2017
D
EC 2016
NOTE $000 $000 $000
Continuing operations
Operating revenue 628,177 1,132,963 607,771
C
ost of sales (457,241) (804,317) (450,308)
Gross profit 170,936 328,646 157,463
O
ther income
4
388
30
Emplo
yee benefits expense (82,257) (160,851) (79,969)
Research and development (2,811) (4,542) (2,650)
O
ther operating expenses
(52,012)
(99,268)
(49,215)
E
quity accounted earnings of investees 312 126 323
(136,764) (264,147) (131,481)
O
perating EBITDA
34,172
64,499
25,982
Non-operating items
1,293
9,521
529
F
air value adjustments
1
(106)
(420)
(283)
D
epreciation and amortisation expense
(6,115)
(10,733)
(5,188)
EBIT
29,244
62,867
21,040
Net int
erest and finance costs
2
(7,997)
(6,158)
(1,511)
P
rofit from continuing operations before income taxes
21,247
56,709
19,529
I
ncome tax expense
(6,604)
(10,428)
(4,562)
P
rofit from continuing operations
14,643
46,281
14,967
D
iscontinued operations
Profit / (loss) from discontinued operations (net of income taxes) (3) 30 12
Net profit after tax
14,640
46,311
14,979
Profit attributable to:
Shareholders of the Company
14,488
45,607
14,988
Non-
controlling interest
152
704
(9)
Net pr
ofit after tax
14,640
46,311
14,979
Earnings per shar
e
Basic earnings per share (New Zealand Dollars)
3 0.019 0.061 0.020
C
ontinuing operations
Basic earnings per share (New Zealand Dollars)
3
0.019
0.061
0.020
T
he accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF PROFIT OR LOSS
For the six months ended 31 December 2017
2 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 32 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 3
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME
For the six months ended 31 December 2017
UNAUDITED AUDITED UNAUDITED
D
EC 2017
J
UN 2017
D
EC 2016
$000 $000 $000
Net profit after tax 14,640 46,311 14,979
Other comprehensive income/(loss) for the period
Items that will never be reclassified to profit or loss
Changes in fair value of equity instruments
– 240 504
R
emeasurements of defined benefit liability
1,992
3,121
4,745
D
eferred tax on remeasurements and change of defined benefit liability (550) (2,389) (2,956)
1,442
972
2,293
I
tems that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations 3,885 (1,550) 942
E
ffective portion of changes in fair value of cash flow hedges
–
(2,039)
(2,039)
I
ncome/deferred tax on changes in fair value of cash flow hedges – 571 571
3,885
(3,018)
(526)
O
ther comprehensive income/(loss) for the period, net of income tax
5,327
(2,046)
1,767
T
otal comprehensive income for the period
19,967
44,265
16,746
T
otal comprehensive income/(loss) attributable to:
Shareholders of the Company
19,818
43,579
16,773
Non-controlling interest 149 686 (27)
T
otal comprehensive income for the period
19,967
44,265
16,746
T
he accompanying notes form an integral part of these financial statements.
4 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 54 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 5
KEY FINANCIAL DISCLOSURES
(a) Operating Segments
During 2017 the Group reorganised its operating structure to have three primary operating segments: Agency, Retail and Water and Seed and
Grain which are the Group’s strategic divisions. Agency and Retail and Water operate within New Zealand. Seed and Grain primarily operates
within New Zealand with additional operations in Australia and South America. Comparative segmental information has been restated in respect
of the change in operating structure.
The three operating segments offer different products and services, and are managed separately because they require different skills, technology
and marketing strategies. There is also a Group General Manager for each segment. Within each segment, further business unit analysis may be
provided to management where there are significant differences in the nature of activities. The Chief Executive Officer or Chairman of the Board
reviews internal management reports on each strategic business unit on at least a monthly basis.
– Agency. Includes rural Livestock trading activities, Export Livestock, Wool, Insurance, Real Estate and Finance Commission.
– Retail and Water. Includes the Rural Supplies and Fruitfed retail operations, PGG Wrightson Water, AgNZ (Consulting), Agritrade and ancillary
sales support, supply chain and marketing functions.
– Seed and Grain. Includes Australasia Seed and Grain (New Zealand and Australian manufacturing and distribution of forage seed and turf,
sale of cereal seed and grain trading, international trading and seed production), South America (various related activities in the developing
seeds markets including the sale of pasture and crop seed and farm inputs, together with operations in the areas of livestock, real estate and
irrigation), and other Seed and Grain (research and development and corporate seeds).
– Other. Other non-segmented amounts relate to certain Group Corporate activities including Finance, Treasury, HR and other support services
including corporate property services and include adjustments for discontinued operations (PGW Rural Capital Limited) and consolidation/
elimination adjustments.
(b) Operating Segment Information
AGENCY RETAIL AND WATER SEED AND GRAINOTHERTOTA L
UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITED
DEC 2017 JUN 2017 DEC 2016 DEC 2017 JUN 2017 DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016
$000 $000 $000 $000 $000 $000 $000$000$000$000$000$000 $000$000$000
Total segment revenue 84,304 197,098 91,415 381,732 562,162 348,569 208,790 428,711 203,521 305 1,040 685 675,131 1,189,012 644,190
Intersegment revenue – – – – – – (46,954)(56,049)(36,419)––– (46,954) (56,049) (36,419)
Total external operating revenues 84,304 197,098 91,415 381,732 562,162 348,569 161,836 372,663 167,102 305 1,040 685 628,177 1,132,963 607,771
Operating EBITDA 4,633 17,996 2,012 23,621 18,295 18,922 10,813 37,045 8,613 (4,895) (8,836) (3,565)34,172 64,499 25,982
Non-operating items 350 3,275 745 600 (12) 67 253 7,604 (118) 90 (1,347) (165)1,293 9,521 529
Fair value adjustments (18) 26 17 – – – (88) (324) (300)– (121)– (106) (420) (283)
Depreciation and amortisation expense (513) (1,130) (561) (1,445) (1,737) (863) (2,912) (5,517) (2,658) (1,245) (2,349) (1,106) (6,115) (10,733) (5,188)
EBIT 4,452 20,167 2,213 22,776 16,546 18,126 8,066 38,807 5,538 (6,050) (12,654) (4,837) 29,244 62,866 21,040
Net interest and finance costs (1,370) 472 1,134 291 272 592 (4,131) (4,127) (1,437) (2,787) (2,774) (1,800) (7,997) (6,158) (1,511)
Profit / (loss) from continuing operations before income taxes 3,082 20,639 3,347 23,067 16,819 18,719 3,935 34,680 4,101 (8,837) (15,428) (6,637)21,247 56,709 19,529
Income tax (expense) / income (584) (4,171) (1,925) (6,354) (5,253) (7,411) (1,231) (7,513) (2,831) 1,565 6,509 7,605 (6,604) (10,428) (4,562)
Profit/(loss) from continuing operations 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,272) (8,920) 969 14,643 46,281 14,967
Discontinued operations – – – – – – ––– (3) 30 12 (3) 30 12
Net profit after tax 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,275) (8,890) 981 14,640 46,311 14,979
Segment assets 142,539 145,410 114,303 275,372 137,081 241,042 361,463 367,753 324,870 39,028 27,704 38,588 818,402 677,949 718,803
Investment in equity accounted investees – – – – – – 24,234 20,892 21,107 62 81 78 24,296 20,973 21,185
Assets held for sale – 37 88 218 500 264 –– 5,497 2,398 2,690 2,311 2,616 3,227 8,160
Total segment assets 142,539 145,447 114,391 275,590 137,581 241,306 385,697 388,645 351,475 41,488 30,475 40,977 845,314 702,148 748,148
Segment liabilities (39,283) (71,296) (43,903) (171,920) (72,117) (150,193) (171,754) (187,209) (161,806) (168,223) (81,816) (116,361) (551,180) (412,437) (472,263)
The accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT
For the six months ended / as at 31 December 2017
Assets allocated to each business unit combine to form total assets for the Agency, Retail and Water and Seed and Grain business segments.
Certain other assets are held at a Corporate level including those for the Corporate functions noted above.
The profit/(loss) for each business unit combines to form total profit/(loss) of the Agency, Retail and Water and Seed and Grain segments.
Certain other revenues and expenses are held at the Corporate level for the Corporate functions noted above.
Other cost allocation
The Group has adopted an allocation methodology which allocates certain corporate costs where they can be directly attributed to the
operating segment or attributed based on the use of the following methods:
–IT hardware, support, licence and other costs attributed on a per user basis.
–Property costs allocated, where not directly attributable, on a property space utilisation basis.
–Business operations costs (Accounts Payable, Accounts Receivable, Credit Services, Call Centre) allocated based on FTE usage by each
operating segment, transactional volumes or for Credit Services allocated based on the operating segment to which overdue accounts
relate to.
Other costs including non-operating items, fair value adjustments, net interest and finance costs, income tax expense as well as the reporting
of discontinued operations are not fully allocated by the Group. Accordingly, these items have not been allocated across the operating
segments. The Group Finance, Risk and Assurance, Treasury, HR, Credit and the Executive Team functions continue to be reported outside of
the operating segments.
4 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 54 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 5
KEY FINANCIAL DISCLOSURES
(a) Operating Segments
During 2017 the Group reorganised its operating structure to have three primary operating segments: Agency, Retail and Water and Seed and
Grain which are the Group’s strategic divisions. Agency and Retail and Water operate within New Zealand. Seed and Grain primarily operates
within New Zealand with additional operations in Australia and South America. Comparative segmental information has been restated in respect
of the change in operating structure.
The three operating segments offer different products and services, and are managed separately because they require different skills, technology
and marketing strategies. There is also a Group General Manager for each segment. Within each segment, further business unit analysis may be
provided to management where there are significant differences in the nature of activities. The Chief Executive Officer or Chairman of the Board
reviews internal management reports on each strategic business unit on at least a monthly basis.
–Agency. Includes rural Livestock trading activities, Export Livestock, Wool, Insurance, Real Estate and Finance Commission.
–Retail and Water. Includes the Rural Supplies and Fruitfed retail operations, PGG Wrightson Water, AgNZ (Consulting), Agritrade and ancillary
sales support, supply chain and marketing functions.
–Seed and Grain. Includes Australasia Seed and Grain (New Zealand and Australian manufacturing and distribution of forage seed and turf,
sale of cereal seed and grain trading, international trading and seed production), South America (various related activities in the developing
seeds markets including the sale of pasture and crop seed and farm inputs, together with operations in the areas of livestock, real estate and
irrigation), and other Seed and Grain (research and development and corporate seeds).
–Other. Other non-segmented amounts relate to certain Group Corporate activities including Finance, Treasury, HR and other support services
including corporate property services and include adjustments for discontinued operations (PGW Rural Capital Limited) and consolidation/
elimination adjustments.
(b) Operating Segment Information
AGENCYRETAIL AND WATERSEED AND GRAIN OTHER TOTA L
UNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITEDUNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED
DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017 JUN 2017 DEC 2016DEC 2017 JUN 2017 DEC 2016 DEC 2017 JUN 2017 DEC 2016
$000$000$000$000$000$000$000 $000 $000 $000 $000 $000 $000 $000 $000
Total segment revenue 84,304 197,098 91,415 381,732 562,162 348,569 208,790 428,711 203,521 305 1,040 685 675,131 1,189,012 644,190
Intersegment revenue–––––– (46,954) (56,049) (36,419) – – – (46,954) (56,049) (36,419)
Total external operating revenues 84,304 197,098 91,415 381,732 562,162 348,569 161,836 372,663 167,102 305 1,040 685 628,177 1,132,963 607,771
Operating EBITDA 4,633 17,996 2,012 23,621 18,295 18,922 10,813 37,045 8,613 (4,895) (8,836) (3,565) 34,172 64,499 25,982
Non-operating items 350 3,275 745 600 (12) 67 253 7,604 (118) 90 (1,347) (165) 1,293 9,521 529
Fair value adjustments (18) 26 17 ––– (88) (324) (300) – (121) – (106) (420) (283)
Depreciation and amortisation expense (513) (1,130) (561) (1,445) (1,737) (863) (2,912) (5,517) (2,658) (1,245) (2,349) (1,106) (6,115) (10,733) (5,188)
EBIT 4,452 20,167 2,213 22,776 16,546 18,126 8,066 38,807 5,538 (6,050) (12,654) (4,837) 29,244 62,866 21,040
Net interest and finance costs (1,370) 472 1,134 291 272 592 (4,131) (4,127) (1,437) (2,787) (2,774) (1,800) (7,997) (6,158) (1,511)
Profit / (loss) from continuing operations before income taxes 3,082 20,639 3,347 23,067 16,819 18,719 3,935 34,680 4,101 (8,837) (15,428) (6,637) 21,247 56,709 19,529
Income tax (expense) / income (584) (4,171) (1,925) (6,354) (5,253) (7,411) (1,231) (7,513) (2,831) 1,565 6,509 7,605 (6,604) (10,428) (4,562)
Profit/(loss) from continuing operations 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,272) (8,920) 969 14,643 46,281 14,967
Discontinued operations––––––– – – (3) 30 12 (3) 30 12
Net profit after tax 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,275) (8,890) 981 14,640 46,311 14,979
Segment assets 142,539 145,410 114,303 275,372 137,081 241,042 361,463 367,753 324,870 39,028 27,704 38,588 818,402 677,949 718,803
Investment in equity accounted investees–––––– 24,234 20,892 21,107 62 81 78 24,296 20,973 21,185
Assets held for sale– 37 88 218 500 264 – – 5,497 2,398 2,690 2,311 2,616 3,227 8,160
Total segment assets 142,539 145,447 114,391 275,590 137,581 241,306 385,697 388,645 351,475 41,488 30,475 40,977 845,314 702,148 748,148
Segment liabilities (39,283) (71,296) (43,903) (171,920) (72,117) (150,193) (171,754) (187,209) (161,806) (168,223) (81,816) (116,361) (551,180) (412,437) (472,263)
The accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT
For the six months ended / as at 31 December 2017
Assets allocated to each business unit combine to form total assets for the Agency, Retail and Water and Seed and Grain business segments.
Certain other assets are held at a Corporate level including those for the Corporate functions noted above.
The profit/(loss) for each business unit combines to form total profit/(loss) of the Agency, Retail and Water and Seed and Grain segments.
Certain other revenues and expenses are held at the Corporate level for the Corporate functions noted above.
Other cost allocation
The Group has adopted an allocation methodology which allocates certain corporate costs where they can be directly attributed to the
operating segment or attributed based on the use of the following methods:
– IT hardware, support, licence and other costs attributed on a per user basis.
–Property costs allocated, where not directly attributable, on a property space utilisation basis.
– Business operations costs (Accounts Payable, Accounts Receivable, Credit Services, Call Centre) allocated based on FTE usage by each
operating segment, transactional volumes or for Credit Services allocated based on the operating segment to which overdue accounts
relate to.
Other costs including non-operating items, fair value adjustments, net interest and finance costs, income tax expense as well as the reporting
of discontinued operations are not fully allocated by the Group. Accordingly, these items have not been allocated across the operating
segments. The Group Finance, Risk and Assurance, Treasury, HR, Credit and the Executive Team functions continue to be reported outside of
the operating segments.
4 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 54 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 5
KEY FINANCIAL DISCLOSURES
(a) Operating Segments
During 2017 the Group reorganised its operating structure to have three primary operating segments: Agency, Retail and Water and Seed and
Grain which are the Group’s strategic divisions. Agency and Retail and Water operate within New Zealand. Seed and Grain primarily operates
within New Zealand with additional operations in Australia and South America. Comparative segmental information has been restated in respect
of the change in operating structure.
The three operating segments offer different products and services, and are managed separately because they require different skills, technology
and marketing strategies. There is also a Group General Manager for each segment. Within each segment, further business unit analysis may be
provided to management where there are significant differences in the nature of activities. The Chief Executive Officer or Chairman of the Board
reviews internal management reports on each strategic business unit on at least a monthly basis.
–Agency. Includes rural Livestock trading activities, Export Livestock, Wool, Insurance, Real Estate and Finance Commission.
–Retail and Water. Includes the Rural Supplies and Fruitfed retail operations, PGG Wrightson Water, AgNZ (Consulting), Agritrade and ancillary
sales support, supply chain and marketing functions.
–Seed and Grain. Includes Australasia Seed and Grain (New Zealand and Australian manufacturing and distribution of forage seed and turf,
sale of cereal seed and grain trading, international trading and seed production), South America (various related activities in the developing
seeds markets including the sale of pasture and crop seed and farm inputs, together with operations in the areas of livestock, real estate and
irrigation), and other Seed and Grain (research and development and corporate seeds).
–Other. Other non-segmented amounts relate to certain Group Corporate activities including Finance, Treasury, HR and other support services
including corporate property services and include adjustments for discontinued operations (PGW Rural Capital Limited) and consolidation/
elimination adjustments.
(b) Operating Segment Information
AGENCYRETAIL AND WATERSEED AND GRAINOTHERTOTA L
UNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITED
DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016
$000$000$000$000$000$000$000$000$000$000$000$000 $000$000$000
Total segment revenue 84,304 197,098 91,415 381,732 562,162 348,569 208,790 428,711 203,521 305 1,040 685 675,131 1,189,012 644,190
Intersegment revenue––––––(46,954)(56,049)(36,419)––– (46,954) (56,049) (36,419)
Total external operating revenues 84,304 197,098 91,415 381,732 562,162 348,569 161,836 372,663 167,102 305 1,040 685 628,177 1,132,963 607,771
Operating EBITDA 4,633 17,996 2,012 23,621 18,295 18,922 10,813 37,045 8,613 (4,895) (8,836) (3,565)34,172 64,499 25,982
Non-operating items 350 3,275 745 600 (12) 67 253 7,604 (118) 90 (1,347) (165)1,293 9,521 529
Fair value adjustments (18) 26 17 ––– (88) (324) (300)– (121)– (106) (420) (283)
Depreciation and amortisation expense (513) (1,130) (561) (1,445) (1,737) (863) (2,912) (5,517) (2,658) (1,245) (2,349) (1,106) (6,115) (10,733) (5,188)
EBIT 4,452 20,167 2,213 22,776 16,546 18,126 8,066 38,807 5,538 (6,050) (12,654) (4,837) 29,244 62,866 21,040
Net interest and finance costs (1,370) 472 1,134 291 272 592 (4,131) (4,127) (1,437) (2,787) (2,774) (1,800) (7,997) (6,158) (1,511)
Pr
ofit / (loss) from continuing operations before income taxes 3,082 20,639 3,347 23,067 16,819 18,719 3,935 34,680 4,101 (8,837) (15,428) (6,637)21,247 56,709 19,529
Income tax (expense) / income (584) (4,171) (1,925) (6,354) (5,253) (7,411) (1,231) (7,513) (2,831) 1,565 6,509 7,605 (6,604) (10,428) (4,562)
Profit/(loss) from continuing operations 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,272) (8,920) 969 14,643 46,281 14,967
Discontinued operations––––––––– (3) 30 12 (3) 30 12
Net profit after tax 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,275) (8,890) 981 14,640 46,311 14,979
Segment assets 142,539 145,410 114,303 275,372 137,081 241,042 361,463 367,753 324,870 39,028 27,704 38,588 818,402 677,949 718,803
Investment in equity accounted investees–––––– 24,234 20,892 21,107 62 81 78 24,296 20,973 21,185
Assets held for sale– 37 88 218 500 264 –– 5,497 2,398 2,690 2,311 2,616 3,227 8,160
Total segment assets 142,539 145,447 114,391 275,590 137,581 241,306 385,697 388,645 351,475 41,488 30,475 40,977 845,314 702,148 748,148
Segment liabilities (39,283) (71,296) (43,903) (171,920) (72,117) (150,193) (171,754) (187,209) (161,806) (168,223) (81,816) (116,361) (551,180) (412,437) (472,263)
The accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT
For the six months ended / as at 31 December 2017
Assets allocated to each business unit combine to form total assets for the Agency, Retail and Water and Seed and Grain business segments.
Certain other assets are held at a Corporate level including those for the Corporate functions noted above.
The profit/(loss) for each business unit combines to form total profit/(loss) of the Agency, Retail and Water and Seed and Grain segments.
Certain other revenues and expenses are held at the Corporate level for the Corporate functions noted above.
Other cost allocation
The Group has adopted an allocation methodology which allocates certain corporate costs where they can be directly attributed to the
operating segment or attributed based on the use of the following methods:
–IT hardware, support, licence and other costs attributed on a per user basis.
–Property costs allocated, where not directly attributable, on a property space utilisation basis.
–Business operations costs (Accounts Payable, Accounts Receivable, Credit Services, Call Centre) allocated based on FTE usage by each
operating segment, transactional volumes or for Credit Services allocated based on the operating segment to which overdue accounts
relate to.
Other costs including non-operating items, fair value adjustments, net interest and finance costs, income tax expense as well as the reporting
of discontinued operations are not fully allocated by the Group. Accordingly, these items have not been allocated across the operating
segments. The Group Finance, Risk and Assurance, Treasury, HR, Credit and the Executive Team functions continue to be reported outside of
the operating segments.
4 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 54 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 5
KEY FINANCIAL DISCLOSURES
(a) Operating Segments
During 2017 the Group reorganised its operating structure to have three primary operating segments: Agency, Retail and Water and Seed and
Grain which are the Group’s strategic divisions. Agency and Retail and Water operate within New Zealand. Seed and Grain primarily operates
within New Zealand with additional operations in Australia and South America. Comparative segmental information has been restated in respect
of the change in operating structure.
The three operating segments offer different products and services, and are managed separately because they require different skills, technology
and marketing strategies. There is also a Group General Manager for each segment. Within each segment, further business unit analysis may be
provided to management where there are significant differences in the nature of activities. The Chief Executive Officer or Chairman of the Board
reviews internal management reports on each strategic business unit on at least a monthly basis.
–Agency. Includes rural Livestock trading activities, Export Livestock, Wool, Insurance, Real Estate and Finance Commission.
–Retail and Water. Includes the Rural Supplies and Fruitfed retail operations, PGG Wrightson Water, AgNZ (Consulting), Agritrade and ancillary
sales support, supply chain and marketing functions.
–Seed and Grain. Includes Australasia Seed and Grain (New Zealand and Australian manufacturing and distribution of forage seed and turf,
sale of cereal seed and grain trading, international trading and seed production), South America (various related activities in the developing
seeds markets including the sale of pasture and crop seed and farm inputs, together with operations in the areas of livestock, real estate and
irrigation), and other Seed and Grain (research and development and corporate seeds).
–Other. Other non-segmented amounts relate to certain Group Corporate activities including Finance, Treasury, HR and other support services
including corporate property services and include adjustments for discontinued operations (PGW Rural Capital Limited) and consolidation/
elimination adjustments.
(b) Operating Segment Information
AGENCYRETAIL AND WATERSEED AND GRAINOTHERTOTA L
UNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITEDUNAUDITEDAUDITEDUNAUDITED
DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016DEC 2017JUN 2017DEC 2016
$000$000$000$000$000$000$000$000$000$000$000$000 $000$000$000
Total segment revenue 84,304 197,098 91,415 381,732 562,162 348,569 208,790 428,711 203,521 305 1,040 685 675,131 1,189,012 644,190
Intersegment revenue––––––(46,954)(56,049)(36,419)––– (46,954) (56,049) (36,419)
Total external operating revenues 84,304 197,098 91,415 381,732 562,162 348,569 161,836 372,663 167,102 305 1,040 685 628,177 1,132,963 607,771
Operating EBITDA 4,633 17,996 2,012 23,621 18,295 18,922 10,813 37,045 8,613 (4,895) (8,836) (3,565)34,172 64,499 25,982
Non-operating items 350 3,275 745 600 (12) 67 253 7,604 (118) 90 (1,347) (165)1,293 9,521 529
Fair value adjustments (18) 26 17 ––– (88) (324) (300)– (121)– (106) (420) (283)
Depreciation and amortisation expense (513) (1,130) (561) (1,445) (1,737) (863) (2,912) (5,517) (2,658) (1,245) (2,349) (1,106) (6,115) (10,733) (5,188)
EBIT 4,452 20,167 2,213 22,776 16,546 18,126 8,066 38,807 5,538 (6,050) (12,654) (4,837) 29,244 62,866 21,040
Net interest and finance costs (1,370) 472 1,134 291 272 592 (4,131) (4,127) (1,437) (2,787) (2,774) (1,800) (7,997) (6,158) (1,511)
Pr
ofit / (loss) from continuing operations before income taxes 3,082 20,639 3,347 23,067 16,819 18,719 3,935 34,680 4,101 (8,837) (15,428) (6,637)21,247 56,709 19,529
Income tax (expense) / income (584) (4,171) (1,925) (6,354) (5,253) (7,411) (1,231) (7,513) (2,831) 1,565 6,509 7,605 (6,604) (10,428) (4,562)
Profit/(loss) from continuing operations 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,272) (8,920) 969 14,643 46,281 14,967
Discontinued operations––––––––– (3) 30 12 (3) 30 12
Net profit after tax 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,275) (8,890) 981 14,640 46,311 14,979
Segment assets 142,539 145,410 114,303 275,372 137,081 241,042 361,463 367,753 324,870 39,028 27,704 38,588 818,402 677,949 718,803
Investment in equity accounted investees–––––– 24,234 20,892 21,107 62 81 78 24,296 20,973 21,185
Assets held for sale– 37 88 218 500 264 –– 5,497 2,398 2,690 2,311 2,616 3,227 8,160
Total segment assets 142,539 145,447 114,391 275,590 137,581 241,306 385,697 388,645 351,475 41,488 30,475 40,977 845,314 702,148 748,148
Segment liabilities (39,283) (71,296) (43,903) (171,920) (72,117) (150,193) (171,754) (187,209) (161,806) (168,223) (81,816) (116,361) (551,180) (412,437) (472,263)
The accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT
For the six months ended / as at 31 December 2017
Assets allocated to each business unit combine to form total assets for the Agency, Retail and Water and Seed and Grain business segments.
Certain other assets are held at a Corporate level including those for the Corporate functions noted above.
The profit/(loss) for each business unit combines to form total profit/(loss) of the Agency, Retail and Water and Seed and Grain segments.
Certain other revenues and expenses are held at the Corporate level for the Corporate functions noted above.
Other cost allocation
The Group has adopted an allocation methodology which allocates certain corporate costs where they can be directly attributed to the
operating segment or attributed based on the use of the following methods:
–IT hardware, support, licence and other costs attributed on a per user basis.
–Property costs allocated, where not directly attributable, on a property space utilisation basis.
–Business operations costs (Accounts Payable, Accounts Receivable, Credit Services, Call Centre) allocated based on FTE usage by each
operating segment, transactional volumes or for Credit Services allocated based on the operating segment to which overdue accounts
relate to.
Other costs including non-operating items, fair value adjustments, net interest and finance costs, income tax expense as well as the reporting
of discontinued operations are not fully allocated by the Group. Accordingly, these items have not been allocated across the operating
segments. The Group Finance, Risk and Assurance, Treasury, HR, Credit and the Executive Team functions continue to be reported outside of
the operating segments.
6 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 76 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 7
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CASH FLOWS
For the six months ended 31 December 2017
UNAUDITED AUDITED UNAUDITED
D
EC 2017
J
UN 2017
D
EC 2016
NOTE $000 $000 $000
Cash flows from operating activities
Cash was provided from
Receipts from customers
543,007 1,201,273 566,771
Dividends received 2 10 1
I
nterest received
2,403
3,318
1,282
545,412 1,204,601 568,054
C
ash was applied to
Payments to suppliers and employees (582,712) (1,159,853) (567,335)
Lump sum contributions to defined benefit plans (ESCT inclusive) (1,340) (7,551) (6,030)
I
nterest paid
(4,049)
(6,321)
(3,417)
I
ncome tax paid (7,090) (10,408) (7,465)
(595,191)
(1,184,133)
(584,247)
Net c
ash inflow / (outflow) from operating activities
(49,779)
20,468
(16,193)
C
ash flows from investing activities
Cash was provided from
Proceeds from sale of property, plant and equipment and assets held for sale
2,426
22,352
8,673
Net decrease in finance receivables – – 22
Net pr
oceeds from sale of investments
111
4,424
4,424
2,537 26,776 13,119
Cash was applied to
Purchase of property, plant and equipment
(5,268)
(12,803)
(6,950)
P
urchase of intangibles
(3,940)
(4,307)
(933)
Net cash paid for purchase of investments (1,056) (2,773) (2,975)
(10,264) (19,883) (10,858)
Net cash flow from investing activities (7,727) 6,893 2,261
C
ash flows from financing activities
Cash was provided from
Increase in external borrowings and bank overdraft
84,298
3,715
32,144
R
epayment of loans from related parties
3,596
–
–
87,894
3,715
32,144
Cash was applied to
Dividends paid to shareholders (15,234) (28,588) (15,252)
Dividends paid to minority interests
(310)
(646)
(289)
R
epayment of loans to related parties
–
–
(163)
(15,544)
(29,234)
(15,704)
Net c
ash flow from financing activities
72,350
(25,519)
16,440
Net incr
ease in cash held 14,844 1,842 2,508
Opening cash
9,403
7,561
7,561
C
ash and cash equivalents
4
24,247
9,403
10,069
T
he accompanying notes form an integral part of these financial statements.
6 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 76 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 7
PGG WRIGHTSON LIMITED
RECONCILIATION OF PROFIT AFTER TAX
WITH NET CASH FLOW FROM OPERATING ACTIVITIES
For the six months ended 31 December 2017
UNAUDITED AUDITED UNAUDITED
D
EC 2017
J
UN 2017
D
EC 2016
$000 $000 $000
Profit after taxation 14,640 46,311 14,979
Add/(deduct) non-cash/non operating items
Depreciation, amortisation and impairment
6,115 10,733 5,188
Fair value adjustments 106 420 283
Net (pr
ofit)/loss on sale of assets/investments
(1,327)
(9,630)
(1,636)
Bad debts wr
itten off (net) 561 1,244 494
Change in def
erred taxation
(3,834)
(811)
(8,453)
Ear
nings of equity accounted investees 312 (126) (323)
Discontinued operations 3 (30) (12)
E
ffect of foreign exchange movements
(98)
(197)
(307)
Ear
n-out provision reassessment (328) (2,373) –
Pension contributions (operating cash) not expensed through profit and loss
(1,340)
(7,551)
(6,030)
O
ther non-cash/non-operating items
445
1,988
4,189
15,255
39,978
8,372
A
dd/(deduct) movement in working capital items
Movement in working capital due to sale/purchase of businesses
(2,683) (3,378) (3,433)
Change in inventories and biological assets
10,634
(11,208)
29,739
Change in accounts r
eceivable and prepayments
(132,215)
(12,364)
(83,702)
Change in trade cr
editors, provisions and accruals
53,479
5,856
27,337
Change in income tax payable/receivable 4,357 2,156 8,040
Change in other current assets/liabilities 1,394 (572) (2,546)
(65,034) (19,510) (24,565)
Net cash flow from operating activities
(49,779)
20,468
(16,193)
T
he accompanying notes form an integral part of these financial statements.
8 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 9
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF FINANCIAL POSITION
As at 31 December 2017
UNAUDITEDAUDITEDUNAUDITED
DEC 2017 JUN 2017 DEC 2016
NOTE$000$000$000
ASSETS
Current
Cash and cash equivalents 4 24,247 9,403 10,069
Short-term derivative assets
1,501 3,528 2,595
Trade and other r
eceivables 365,924 230,022 322,498
Go livestock receivables
28,683 32,371 12,816
Assets classified as held f
or sale 2,616 3,227 8,160
Biological assets
1,897 1,553 927
In
ventories
242,677 253,600 214,251
Other in
vestments
30 3,441 3,822
Total curr
ent assets
667,575 537,145 575,138
Non-curr
ent
Long-term derivative assets
122 427 2,412
Biological assets
78 58 61
Deferred tax asset
18,979 15,145 22,787
In
vestments in equity accounted investees 24,296 20,973 21,185
Other investments
5
2,140
1,906
1,925
Intang
ible assets 11,162 9,129 6,655
Property, plant and equipment
7
120,962
117,365
117,985
Total non-
current assets 177,739 165,003 173,010
Total assets
845,314 702,148 748,148
LIABILITIES
Curr
ent
Debt due within one year
4 91,215 26,719 70,034
Short
-term derivative liabilities 2,724 991 748
Accounts payable and accruals
301,837 248,290 269,426
Income tax pa
yable 8,115 4,115 10,555
Defined benefit liability
9
1,046
942
1,117
Total cur
rent liabilities 404,937 281,057 351,880
Non-current
Long-term debt 4 130,634 110,925 96,283
Long-term derivative liabilities
824 661 762
Other long-t
erm liabilities
3,107 4,909 9,138
Defined benefit liability
9
11,678
14,885
14,200
Total non-
current liabilities
146,243 131,380 120,383
Total liabilities
551,180
412,437
472,263
EQUITY
Shar
e capital
606,324 606,324 606,324
Reser
ves
4,980
(2,956)
5,552
Retained ear
nings
(319,473)
(316,121)
(338,099)
Total equit
y attributable to shareholders of the Company 291,831 287,247 273,777
Non-controlling interest
2,303
2,464
2,108
Total equit
y
294,134 289,711 275,885
Total liabilities and equit
y
845,314 702,148 748,148
The accompanying notes form an integral part of these financial statements.
8 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 9
Fruitfed Supplies TFR Lara Dunningham
inspects fruit trees near Hastings, October 2017.
Additional Financial Disclosures
including Notes to the Financial Statements for the
six months ended 31 December 2017
10 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 11
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 December 2017
1 FAIR VALUE ADJUSTMENTS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
Assets held for sale – (121) –
Biological assets (23) 28 10
Investments (83) (327) (293)
(106) (420) (283)
2 NET INTEREST AND FINANCE COSTS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000
$000
Finance income contains the following items:
Other interest income
183
211
80
F
inance income 183 211 80
Interest funding contains the following items:
Interest on loans and overdrafts (3,033) (5,747) (2,722)
Net interest on interest rate derivatives
(338)
(367)
(173)
Fair value change on interest rate derivatives (75) 392 585
Effective interest on expected earnout payments (420) (27) (558)
Effective interest on expected defined benefit pension ESCT payments (208) (122) (229)
Other interest expense (634) (108) (506)
Bank facility fees
(373)
(772)
(417)
In
terest funding expense
(5,081)
(6,751)
(4,020)
F
oreign exchange contains the following items:
Net gain/(loss) on foreign denominated items 1,056 (924) 120
F
air value change on foreign exchange derivatives (4,155) 1,306 2,309
F
oreign exchange income/(expense)
(3,099)
382
2,429
Net in
terest and finance costs (7,997) (6,158) (1,511)
3 EARNINGS PER SHARE AND NET TANGIBLE ASSETS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
000 000 000
Number of shares
Weighted average number of ordinary shares 754,849 754,849 754,849
Number of or
dinary shares
754,849
754,849
754,849
10 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 11
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 December 2017
3 EARNINGS PER SHARE AND NET TANGIBLE ASSETS (CONTINUED)
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
Net Tangible Assets
Total assets 845,314 702,148 748,148
T
otal liabilities (551,180) (412,437) (472,263)
less intangible assets (11,162) (9,129) (6,655)
less def
erred tax (18,979) (15,145) (22,787)
263,993 265,437 246,443
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$ $ $
Net tangible assets per share 0.350 0.352 0.326
Earnings per share 0.019 0.061 0.020
4 CASH AND FINANCING FACILITIES
UNAUDITED AUDITED UNAUDITED
D
EC 2017
J
UN 2017
D
EC 2016
$000 $000
$000
Cash and cash equivalents 24,247 9,403 10,069
Current financing facilities (91,215) (26,719) (70,034)
Term financing facilities (130,634) (110,925) (96,283)
Net interest bearing debt (197,602) (128,241) (156,248)
Go range of livestock product receivables
28,683
32,371
12,838
Net in
terest-bearing debt less Go livestock receivables
(168,919)
(95,870)
(143,410)
A
ustralia and New Zealand facilities
The Company amended and restated its syndicated facility agreement on 15 December 2017. The facility agreement provides bank facilities
of $210.00 million. The agreement contains various financial covenants and restrictions that are standard for facilities of this nature, including
maximum permissible ratios for debt leverage and operating leverage. The Company has granted a general security deed and mortgage over all
its wholly-owned New Zealand and Australian assets to a security trust. These assets include the shares held in South American subsidiaries and
equity accounted investees. ANZ Bank New Zealand Limited acts as security trustee for the banking syndicate (ANZ Bank New Zealand Limited,
Bank of China (New Zealand) Limited, Bank of New Zealand, Bank of Tokyo-Mitsubishi UFJ, Ltd and Westpac New Zealand Limited).
The Company’s bank syndicate facilities include:
–
Term debt facilities of $150.00 million maturing on 31 July 2020.
–
A w
orking capital facility of up to $60.00 million maturing on 31 July 2020.
The syndicated facility agreement also allows the Group, subject to certain conditions, to enter into additional facilities outside of the Company
syndicated facility. The additional facilities are guaranteed by the security trust. These facilities amounted to $22.59 million as at 31 December
2017 providing:
–
O
verdraft facilities of $9.60 million.
–
Guarant
ee and trade finance facilities of $10.23 million.
–
Finance lease facilities of $2.76 million.
The syndicated facilities fund the general corporate activities of the Group, the seasonal fluctuations in working capital, and the Go range of
livestock product receivables.
12 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 13
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
4 CASH AND FINANCING FACILITIES (CONTINUED)
South American facilities
Two of the Group’s wholly-owned Uruguayan subsidiaries (Wrightson Pas S.A. and Agrosan S.A.) are jointly and severally financed by a club
structure. The club facilities contain various financial covenants and restrictions that are standard for facilities of this nature. The club facilities are
denominated in USD, secured by a mortgage over the logistics centre in Uruguay and provide:
–
An amor
tising logistics centre facility of $12.23 million (USD 8.68 million) maturing on 17 September 2022.
–
A committ
ed facility of $16.90 million (USD 12.00 million) maturing on 17 September 2018.
– Finance lease facilities of $0.30 million.
Separate to the club facility, the Group’s South American operations have various unsecured financing facilities that amounted to $17.24 million
(USD 12.24 million) as at 31 December 2017.
5 OTHER INVESTMENTS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
N
OTE
$000 $000
$000
Current investments
BioPacificVentures
10
30
30
230
A
dvances to equity accounted investees
–
3,411
3,592
30
3,441
3,822
Non-
current investments
Sundry other investments including saleyards
2,140
1,906
1,925
A
dvances to equity accounted investees
–
–
–
2,140
1,906
1,925
A
dvances to equity accounted investees
This advance was a loan to the South American investee entity Fertimas S. A.. During the period the advance was repaid and replaced with
external bank funding. The Group supports the bank funding by way of guarantee. See Note 11.
Sundry other investments including saleyards
Saleyard investments, which do not have a market price in an active market and whose fair value can not be reliably determined, are carried at
cost.
6 EQUITY ACCOUNTED INVESTEE
During the period the Group made an additional investment in the jointly controlled entity Agimol Corporation S.A. (AgroCentro Uruguay). The
additional investment of $3.07 million was matched by the other joint venture partner. Consideration for the additional investment was the
capitalisation of amounts payable by AgroCentro to the Group.
12 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 13
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
7 PROPERTY, PLANT AND EQUIPMENT
Acquisitions and disposals
During the period to 31 December 2017, the Group acquired assets with a cost of $4.64 million (30 June 2017: $12.86 million, 31 December 2016:
$4.26 million), together with assets acquired through business combinations of $0.66 million (30 June 2017: nil, 31 December 2016: nil).
Assets with a net book value of $0.02 million were disposed during the period to 31 December 2017 (30 June 2017: $10.80 million, 31 December
2016: $10.08 million), resulting in a gain on disposal of $1.48 million (30 June 2017 Gain: $8.74 million, 31 December 2016 Gain: $1.10 million).
8 SEASONALITY OF OPERATIONS
The Group is subject to significant seasonal fluctuations. The Retail business is weighted towards the first half of the financial year as demand
for New Zealand farming inputs are generally weighted towards the Spring season. Livestock and the Australian and South American Seed and
Grain activities are significantly weighted to the second half of the financial year. Seed and Grain revenues reflect the fact the Group operates in
geographical zones that suit Autumn harvesting and sowing. New Zealand generally has spring calving and lambing and so Livestock trading is
weighted towards the second half of the financial year in order for farmers to maximize their incomes. Other business units have similar but less
material cycles. The Group recognises that this seasonality is the nature of the industry and plans and manages its business accordingly.
9 DEFINED BENEFIT ASSET / LIABILITY
The Group made lump sum cash contributions of $1.34 million (gross including employer superannuation contribution tax) to the PGG Wrightson
Employee Benefits Plan during the period (30 June 2017: $7.55 million, 31 December 2016: $6.03 million).
10 COMMITMENTS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
N
OTE
$000 $000
$000
There are commitments with respect to:
Capital expenditure not provided for 3,281 1,432 2,365
Investment in BioPacificVentures 5 51 51 51
C
ontributions to Primary Growth Partnership 572 867 1,167
3,904 2,350 3,583
Primary Growth Partnership–seed and nutritional technology development
The Group announced on 18 February 2013 that it had completed the contracting process for the Primary Growth Partnership (PGP) programme
with the Ministry of Primary Industries. The PGP programme is a Seed and Nutritional Technology Development Programme that aims to deliver
innovative forages for New Zealand farms. As a result of entering into the partnership the Group is committed to contributions to the partnership
of $3.61 million over the six year life of the programme which ends on 31 December 2018. As at 31 December 2017 total contributions of $3.04
million (30 June 2017: $2.74 million, 31 December 2016: $2.44 million) have been made to the programme.
Forward purchase commitments
The Group as part of its ordinary course of business enters into forward purchase agreements with seed and wool growers. These commitments
extend for periods of up to 3 years. These commitments are at varying stage of execution, therefore uncertainty exists with respect to yield, quality
and market price. The Group is unable to sufficiently quantify the value of these commitments.
14 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 15
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
11 CONTINGENT LIABILITIES
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
There are commitments with respect to:
Guarantees 3,487 – –
PGG
Wrightson Loyalty Reward Programme
100
140
120
3,587 140 120
Guarantees
The guarantee is a standby letter of credit supporting external bank funding of the jointly controlled entity Fertimas S.A. Funding was previously
provided by the respective joint venture partners. See Note 5.
PGG Wrightson Loyalty Reward Programme
PGG Wrightson operates the Max Rewards loyalty programme. A provision is retained for the expected level of points redemption. A contingent
liability of $0.10 million represents the balance of unexpired points that do not form part of the provision (30 June 2017: $0.14 million, 31
December 2016: $0.12 million). Losses are not expected to arise from this contingent liability.
Holidays Act 2003 entitlements
The Group has commenced a review of payroll payments made to determine the correctness of calculations in accordance with the Holidays Act
2003. As work on this review has not been completed to a level to reliably estimate the amount of the liability, no provision has been recognised
in respect of this review as at 31 December 2017.
12 RELATED PARTIES
Parent and ultimate controlling party
The immediate parent of the Group is Agria (Singapore) Pte Limited and the ultimate controlling party of the Group is Agria Corporation.
Transactions with key management personnel
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
Key management personnel compensation comprised:
Short-term employee benefits
5,018
7,924
3,622
P
ost-employment benefits
95
121
64
Termination benefits – – –
5,113
8,045
3,686
14 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 15
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
13 EVENTS SUBSEQUENT TO END OF INTERIM PERIOD
Dividend
On 26 February 2018 the Directors of PGG Wrightson Limited resolved to pay an interim dividend of 1.75 cents per share on 5 April 2018 to
shareholders on the Company’s share register as at 5.00pm on 16 March 2018. This dividend will be fully imputed.
14 REPORTING ENTITY
PGG Wrightson Limited (the “Company”) is a company domiciled in New Zealand, registered under the Companies Act 1993 and listed on the New
Zealand Stock Exchange. The Company is an FMC Entity in terms of the Financial Markets Conduct Act 2013.
The interim financial statements of PGG Wrightson Limited for the six months ended 31 December 2017 comprise the Company and its
subsidiaries (together referred to as the “Group”) and the Group’s interest in associates and jointly controlled entities. Financial statements have
been prepared in accordance with the requirements of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.
The Group is primarily involved in the provision of goods and services within the agricultural sector.
15 BASIS OF PREPARATION
Statement of Compliance
The interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”). They
comply with the New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and other applicable Financial Reporting
Standards as applicable for profit oriented entities, and in particular NZ IAS 34. The interim financial statements comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board, as applicable for profit oriented entities.
The interim financial statements do not include all of the information required for full annual financial statements. The same accounting policies
and methods of computation are followed in the interim financial statements as applied in the Group’s latest annual audited financial statements.
Certain comparative amounts have been reclassified to conform with the current period’s presentation.
Standards and Interpretations That Have Been Issued or Amended But Are Not Yet Effective
A number of new standards and interpretations are not yet effective for the period ended 31 December 2017 and have not been applied in
preparing these interim financial statements. The impact of these new standards and interpretations to the Group is as follows:
–
IFRS 9 (2014) F
inancial Instruments has been issued. The final component of IFRS 9 (2014) introduces a new expected credit loss model for
calculating impairment. IFRS 9 (2014) is effective for annual periods beginning on or after 1 January 2018. The Group does not plan to adopt
IFRS 9 (2014) early. Initial review has determined that this new standard will not have a significant financial impact on the Group’s financial
statements.
–
IFRS 15 R
evenue from Contracts with Customers has been issued. This standard introduced a new revenue recognition model for contracts
with customers. The standard is effective for annual periods beginning on or after 1 January 2018. Initial review has determined that this new
standard will not have a significant financial impact on the Group’s financial statements.
–
IFRS 16 L
eases has been issued. This standard eliminates the classification of leases as either operating leases or finance leases. The standard
uses a single lessee model which requires a lessee to recognise on the Statement of Financial Position assets and liabilities for all leases with
a term of more than 12 months. The standard is effective for annual periods beginning on or after 1 January 2019. The Group does not plan
to adopt IFRS 16 early. Initial review has determined that this new standard will likely have a significant financial impact on both the balance
sheet and profit and loss given the extent of operating leases the Group is exposed to.
–
A variety of minor improvements to standards have been made in order to clarify various treatments of specific transactions. These are not
expected to have an impact on the Group’s financial results.
These statements were approved by the Board of Directors on 26 February 2018.
16 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 17
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER
REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTA L
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2016 606,324 (8,749) 23,443 556 1,468 (17,170) 2,412 (336,028) 2,043 274,299
Total comprehensive income for the period
Profit or loss – – –
– – – – 14,988 (9) 14,979
Other comprehensive income
Foreign currency translation differences – 960 –
– – – – – (18) 942
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – 504 – – 504
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – (1,468) – – – – (1,468)
Defined benefit plan actuarial gains and losses, net of tax – – – – – 1,789 – – – 1,789
Total other comprehensive income – 960 – – (1,468) 1,789 504 – (18) 1,767
Total comprehensive income for the period – 960 – – (1,468) 1,789 504 14,988 (27) 16,746
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest – – –
– – – – – 381 381
Dividends to shareholders – – – – – – – (15,252) (289) (15,541)
Total contributions by and distributions to shareholders – – – – – – – (15,252) 92 (15,160)
Transfer to retained earnings – – – – – 1,807 – (1,807) – –
Balance at 31 December 2016 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Balance at 1 January 2017 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Total comprehensive income for the period
Profit or loss – – –
– – – – 30,619 713 31,332
Other comprehensive income
Foreign currency translation differences – (2,492) –
– – – – – – (2,492)
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – (264) – – (264)
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax – – – – – (1,057) – – – (1,057)
Total other comprehensive income – (2,492) – – – (1,057) (264) – – (3,813)
Total comprehensive income for the period – (2,492) – – – (1,057) (264) 30,619 713 27,519
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders – – –
– – – – (13,336) (357) (13,693)
Total contributions by and distributions to shareholders – – – – – – – (13,336) (357) (13,693)
Transfer to retained earnings – – – – – 544 (5,239) 4,695 –
Balance at 30 June 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
16 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 17
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER
REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTA L
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2016 606,324 (8,749) 23,443 556 1,468 (17,170) 2,412 (336,028) 2,043 274,299
Total comprehensive income for the period
Profit or loss – – –
– – – – 14,988 (9) 14,979
Other comprehensive income
Foreign currency translation differences – 960 –
– – – – – (18) 942
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – 504 – – 504
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – (1,468) – – – – (1,468)
Defined benefit plan actuarial gains and losses, net of tax – – – – – 1,789 – – – 1,789
Total other comprehensive income – 960 – – (1,468) 1,789 504 – (18) 1,767
Total comprehensive income for the period – 960 – – (1,468) 1,789 504 14,988 (27) 16,746
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest – – –
– – – – – 381 381
Dividends to shareholders – – – – – – – (15,252) (289) (15,541)
Total contributions by and distributions to shareholders – – – – – – – (15,252) 92 (15,160)
Transfer to retained earnings – – – – – 1,807 – (1,807) – –
Balance at 31 December 2016 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Balance at 1 January 2017 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Total comprehensive income for the period
Profit or loss – – –
– – – – 30,619 713 31,332
Other comprehensive income
Foreign currency translation differences – (2,492) –
– – – – – – (2,492)
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – (264) – – (264)
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax – – – – – (1,057) – – – (1,057)
Total other comprehensive income – (2,492) – – – (1,057) (264) – – (3,813)
Total comprehensive income for the period – (2,492) – – – (1,057) (264) 30,619 713 27,519
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders – – –
– – – – (13,336) (357) (13,693)
Total contributions by and distributions to shareholders – – – – – – – (13,336) (357) (13,693)
Transfer to retained earnings – – – – – 544 (5,239) 4,695 –
Balance at 30 June 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
16 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 17
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTA L
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2016 606,324 (8,749) 23,443 556 1,468 (17,170) 2,412 (336,028) 2,043 274,299
Total comprehensive income for the period
Profit or loss – – – – – – – 14,988 (9) 14,979
Other comprehensive income
Foreign currency translation differences – 960 – – – – – – (18) 942
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – 504 – – 504
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – (1,468) – – – – (1,468)
Defined benefit plan actuarial gains and losses, net of tax – – – – – 1,789 – – – 1,789
Total other comprehensive income – 960 – – (1,468) 1,789 504 – (18) 1,767
Total comprehensive income for the period – 960 – – (1,468) 1,789 504 14,988 (27) 16,746
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest – – – – – – – – 381 381
Dividends to shareholders – – – – – – – (15,252) (289) (15,541)
Total contributions by and distributions to shareholders – – – – – – – (15,252) 92 (15,160)
Transfer to retained earnings – – – – – 1,807 – (1,807) – –
Balance at 31 December 2016 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Balance at 1 January 2017 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Total comprehensive income for the period
Profit or loss – – – – – – – 30,619 713 31,332
Other comprehensive income
Foreign currency translation differences –
(2,492) – – – – – – – (2,492)
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – (264) – – (264)
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax – – – – – (1,057) – – – (1,057)
Total other comprehensive income – (2,492) – – – (1,057) (264) – – (3,813)
Total comprehensive income for the period – (2,492) – – – (1,057) (264) 30,619 713 27,519
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders – – – – – – – (13,336) (357) (13,693)
Total contributions by and distributions to shareholders – – – – – – – (13,336) (357) (13,693)
Transfer to retained earnings – – – – – 544 (5,239) 4,695 –
Balance at 30 June 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
16 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 17
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTA L
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2016 606,324 (8,749) 23,443 556 1,468 (17,170) 2,412 (336,028) 2,043 274,299
Total comprehensive income for the period
Profit or loss – – – – – – – 14,988 (9) 14,979
Other comprehensive income
Foreign currency translation differences – 960 – – – – – – (18) 942
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – 504 – – 504
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – (1,468) – – – – (1,468)
Defined benefit plan actuarial gains and losses, net of tax – – – – – 1,789 – – – 1,789
Total other comprehensive income – 960 – – (1,468) 1,789 504 – (18) 1,767
Total comprehensive income for the period – 960 – – (1,468) 1,789 504 14,988 (27) 16,746
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest – – – – – – – – 381 381
Dividends to shareholders – – – – – – – (15,252) (289) (15,541)
Total contributions by and distributions to shareholders – – – – – – – (15,252) 92 (15,160)
Transfer to retained earnings – – – – – 1,807 – (1,807) – –
Balance at 31 December 2016 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Balance at 1 January 2017 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Total comprehensive income for the period
Profit or loss – – – – – – – 30,619 713 31,332
Other comprehensive income
Foreign currency translation differences –
(2,492) – – – – – – – (2,492)
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – (264) – – (264)
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax – – – – – (1,057) – – – (1,057)
Total other comprehensive income – (2,492) – – – (1,057) (264) – – (3,813)
Total comprehensive income for the period – (2,492) – – – (1,057) (264) 30,619 713 27,519
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders – – – – – – – (13,336) (357) (13,693)
Total contributions by and distributions to shareholders – – – – – – – (13,336) (357) (13,693)
Transfer to retained earnings – – – – – 544 (5,239) 4,695 –
Balance at 30 June 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
18 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 19
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER
REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTA L
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
Total comprehensive income for the period
Profit or loss – – –
– – – – 14,488 152 14,640
Other comprehensive income
Foreign currency translation differences – 3,888 –
– – – – – (3) 3,885
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax – – – – – 1,442 – – – 1,442
Total other comprehensive income – 3,888 – – – 1,442 – – (3) 5,327
Total comprehensive income for the period – 3,888 – – – 1,442 – 14,488 149 19,967
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest – – – – – – – – – –
Dividends to shareholders – – – – – – – (15,234) (310) (15,544)
Total contributions by and distributions to shareholders – – – – – – – (15,234) (310) (15,544)
Transfer to retained earnings – – – – – 2,606 – (2,606) – –
Balance at 31 December 2017 606,324 (6,393) 23,443 556 – (10,039) (2,587) (319,473) 2,303 294,134
18 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 19
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER
REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTA L
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
Total comprehensive income for the period
Profit or loss – – –
– – – – 14,488 152 14,640
Other comprehensive income
Foreign currency translation differences – 3,888 –
– – – – – (3) 3,885
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax – – – – – 1,442 – – – 1,442
Total other comprehensive income – 3,888 – – – 1,442 – – (3) 5,327
Total comprehensive income for the period – 3,888 – – – 1,442 – 14,488 149 19,967
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest – – – – – – – – – –
Dividends to shareholders – – – – – – – (15,234) (310) (15,544)
Total contributions by and distributions to shareholders – – – – – – – (15,234) (310) (15,544)
Transfer to retained earnings – – – – – 2,606 – (2,606) – –
Balance at 31 December 2017 606,324 (6,393) 23,443 556 – (10,039) (2,587) (319,473) 2,303 294,134
18 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 19
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTA L
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
Total comprehensive income for the period
Profit or loss – – – – – – – 14,488 152 14,640
Other comprehensive income
Foreign currency translation differences – 3,888 – – – – – – (3) 3,885
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax – – – – – 1,442 – – – 1,442
Total other comprehensive income – 3,888 – – – 1,442 – – (3) 5,327
Total comprehensive income for the period – 3,888 – – – 1,442 – 14,488 149 19,967
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest – – – – – – – – – –
Dividends to shareholders – – – – – – – (15,234) (310) (15,544)
Total contributions by and distributions to shareholders – – – – – – – (15,234) (310) (15,544)
Transfer to retained earnings – – – – – 2,606 – (2,606) – –
Balance at 31 December 2017 606,324 (6,393) 23,443 556 – (10,039) (2,587) (319,473) 2,303 294,134
18 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT 2017 | 19
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTA L
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
Total comprehensive income for the period
Profit or loss – – – – – – – 14,488 152 14,640
Other comprehensive income
Foreign currency translation differences – 3,888 – – – – – – (3) 3,885
Effective portion of changes in fair value of equity instruments, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax – – – – – 1,442 – – – 1,442
Total other comprehensive income – 3,888 – – – 1,442 – – (3) 5,327
Total comprehensive income for the period – 3,888 – – – 1,442 – 14,488 149 19,967
Transactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest – – – – – – – – – –
Dividends to shareholders – – – – – – – (15,234) (310) (15,544)
Total contributions by and distributions to shareholders – – – – – – – (15,234) (310) (15,544)
Transfer to retained earnings – – – – – 2,606 – (2,606) – –
Balance at 31 December 2017 606,324 (6,393) 23,443 556 – (10,039) (2,587) (319,473) 2,303 294,134
---
PGG Wrightson Limited
Results for announcement to the market
Reporting PeriodSix Months ended 31 December 2017
Previous Reporting PeriodSix Months ended 31 December 2016
Amount (000s)Percentage change
Revenue from ordinary activities
$NZ 628,177+ 3.4%
Profit (loss) from ordinary activities after
tax attributable to security holder.
$NZ 14,488-3.3%
Net profit (loss) attributable to security
holders.
$NZ 14,488
-3.3%
Interim/Final DividendAmount per securityImputed amount per security
Interim0.0175$ 0.006806$
Record Date
16 March 2018
Dividend Payment Date
5 April 2018
CommentsRefer to results release and financial statements.
Net Tangible Assets per security: 31 December 2017 $0.350,
30 June 2017 $0.352, 31 December 2016 $0.326
Profit (loss) from ordinary activities after tax attributable to
security holders calculated as Profit attributable to Shareholders of
the Company as disclosed in the Interim Statement of Profit or
Loss.
Net profit (loss) attributable to security holders calculated as Profit
attributable to Shareholders of the Company as disclosed in the
Interim Statement of Profit or Loss.
---
APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumberDate
Nature of event
BonusIf ticked,Rights Issue
Tick as appropriateIssuestate whether:Taxable/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
x
whether:
Interim
X
YearSpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies (estimated)
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
EMAIL: announce@nzx.com
Notice of event affecting securities
1
PGG Wrightson Limited
Julian DalyDirectors Resolution
027 5533373 03 349 617626022018
Ordinary sharesNZREIE0001S4
In dollars and cents
Retained earnings
$0.0175
Enter N/A if not
applicable
$$0.001215$0.006806
$
NZD$0.003088
$13,209,854
Date Payable
5 April, 2018
16 March, 20185/4/2018
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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