Guidance and Dividend Update

PGG Wrightson Ltd | NZX Announcement 1

20 OCTOBER 2020

Guidance and Dividend
Update


Operating EBITDA* forecast to be up 30% (on a NZ IFRS 16 exclusive basis)
PGG Wrightson Limited** (PGW) Chairman, Rodger Finlay, announced today ahead of the Annual
Shareholders’ Meeting in Blenheim that “Whilst it remains too soon to provide firm guidance about
expectations for FY2021, particularly given the additional uncertainty posed by the COVID-19 pandemic
on global markets, the Board considers that it is nevertheless desirable to provide guidance in relation
to expectations.”
“Based on our current assessment, the Board considers that PGW is well placed to deliver an Operating
EBITDA result of around $52 million (or around $30 million excluding the impact of the new lease
accounting standard). Achievement of a result at this level would represent a very healthy circa 15%
improvement on the prior year on a NZ IFRS 16 inclusive basis (or a circa 30% improvement excluding
NZ IFRS 16).”
“We have had a pleasing start over the first quarter of the financial year with the business trading well
and in line with expectations. We are seeing good demand in our Rural Supplies and Fruitfed Supplies
retail businesses over the early spring period. Livestock trading volumes have been sound with saleyard
throughput bouncing back post the COVID-19 related closures and increased meat processing capacity.
There has also been a recent uptick in the rural and lifestyle real estate sectors with increased buyer
interest. Conversely, the Wool market remains challenging and it is still early in the trading year with
several critical crop growing months ahead of us along with the peak livestock trading window in the
second half.”
“We will maintain a close watching brief on the impacts that the global pandemic continues to have on
trade flows and demand for New Zealand primary exports and consequential implications for PGW. We
anticipate being able to provide a further update on our outlook when announcing our half-year results
in February 2021.”
“In the meantime, I would also reiterate that it is the intention of the Board to resume the payment of
regular dividends. Although a decision on the interim dividend will not be made until the release of
PGW’s half-year results in February, it is the expectation of the Board that an interim dividend of not
less than 8 cents per share would be declared based on trading performance remaining within current
guidance.”
Ends
All media enquiries to:
Julian Daly
General Manager Corporate Affairs
PGG Wrightson Limited
Mobile: +64 27 553 3373

*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. PGW has used non-GAAP profit measures when
discussing financial performance in this document. Please refer to our full accounts for details of how Operating EBITDA relates
to GAAP. For a 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

**All references to PGG Wrightson Limited or the Group refer to the Company, its subsidiaries and interests in associates and
jointly controlled entities.