PGW announces strong FY21 half year result and dividend

PGG Wrightson Ltd | NZX Announcement 1

23 FEBRUARY 2021

PGG Wrightson announces strong
FY21 half year result and dividend




Results Summary & Dividend
PGG Wrightson Limited (“PGW”)* today announced its results for the first half of FY21.
Key highlights of the first six months to 31 December 2020 included:
 Revenue of $499.3 million (up 6%)
 Operating EBITDA** of $42.1 million (up $7.4 million or 21%)
 Net Profit after Tax (“NPAT”) of $18.0 million (up 41%)
 Fully imputed interim dividend of 12 cents per share
 Very strong performances from our Retail, Livestock and Real Estate businesses
 Strong balance sheet and improvement in cash flows from the prior comparative period
 Reconfirmed full year Operating EBITDA guidance of around $57 million
PGW Chairman Rodger Finlay said “Our strong half year results reflect well on the health of the business
and the performance of our people as they continue to deliver for our customers in the agri-sector that
is the powerhouse of New Zealand’s economy. It is particularly pleasing to be able to report that our
Operating EBITDA for the six months to 31 December 2020 was $42.1 million; up 21% on the same
period last year (1H20, $34.7 million).”
PGW delivered a NPAT of $18.0 million from continuing operations which was also up 41% on the
corresponding period (1H20, $12.8 million).
“The Directors are delighted with the performance of the business over the first half as PGW has traded
very well and executed upon its strategy to drive consistent performance and growth. Our focus remains
on serving and adding value to our customers’ businesses by supplying on farm and grower solutions
together with leading technical advice.”
“We are seeing the results of our continued investment in the business and our customers are also
benefitting from the enhancements in the PGW Group offering. Recent examples include the launch of
our eCommerce channel last year, our on-farm hybrid bidr
®
auctions, and the promotion of our popular
livestock programme, GO-STOCK. These initiatives, along with the investment we are making in R&D
enable us to bring new technically proven products and solutions to the New Zealand primary sector
and demonstrates our commitment to innovation and the bright future of the primary sector.”
Mr Finlay said, “Following the strong performance of the business over the first half the Board declared
a fully imputed interim dividend of 12 cents per share which will be paid on 24 March 2021 to
shareholders on PGW’s share register as at 5pm on 3 March 2021.
12 cents

Per Share, Fully Imputed
Interim dividend
$18.0m
Net profit after tax
$42.1m
Operating EBITDA
[

PGG Wrightson Ltd | NZX Announcement 2

First Half Trading Performance
PGW CEO, Stephen Guerin commented that “The result reinforces the combined strength of PGW Group
and the diverse portfolio of businesses that serve farmers and growers across the length and breadth of
the country.”
Retail & Water
“The first six months of the 2021 financial year provided a very good start with all business units within
Retail and Water trading ahead of the corresponding period last year. Operating EBITDA for this group
was $35.8 million (up 15%) and revenue was $413.4 million (up 8%) on the solid performance in the first
half last year.”
“The superior technical ability of our staff and our very stable rep force, who are well supported by our
expert technical and R&D teams, have contributed to an increase in market share. Growth has also
been supported by the uptake in our new PGW eCommerce offering which was launched in June 2020.
While online orders are a relatively small channel for us at this time we are seeing orders come in from
all corners of the country which serves to increase the awareness of our product range, as well as
influencing in-store purchases and attracting new customers.”
“In Rural Supplies we have seen solid growth across most categories. The outlook for our Rural Supplies
business is tempered with sheep and beef farmers cautious about the meat company schedules which
are back on last year. However, dairy farmers are more positive with solid pay-outs expected.”
“The forecast remains very positive for our Fruitfed Supplies business with positive returns for the sector
and stability in prices being obtained by our growers. Crops not affected by the recent weather events
are in good health, with harvest for a number of significant crops underway or commencing shortly.”
“The horticultural sector continues to be buoyant, experiencing good yields, profitable returns, and a
positive outlook, which is driving investment and further development. Our market leading Fruitfed
Supplies business is diversified across a range of crops and continues to adapt to our customer and
market needs.”
“We are heartened by the improvement in our Water business in its first half trading results following our
restructure of the business undertaken at the beginning of this financial year. It is pleasing to see these
early positive signs and we see room for further gains for our Water business as we focus on growing
our service offering.”
“We are conscious of the challenges in international supply chains given widespread
disruption caused
by the impacts of COVID-19.
We are remaining vigilant in this space and doing what we can to mitigate
supply risks for our Agritrade wholesale and retail businesses
.
Our stores have reviewed their forecasts
and stock levels and are ordering for early delivery to assist with continuity of supply in coming months.”
Agency

“Trading for our Agency group delivered an Operating EBITDA of $9.5 million for the first six months of
the 2021 financial year (up 44%) and revenue was $84.8 million, in-line with the same period last year.”
“With many parts of the country coming out of drought conditions we saw a number of farmers rebuilding
their capital stock numbers. Buoyant prices and widespread rain throughout the South Island created
good conditions with plenty of feed on-farm stimulating farmer confidence.”
“Strong global demand for dairy persists with farmgate prices continuing to rise and underpin confidence
in the dairy sector.”
“With capital available to support growth of our GO-STOCK livestock grazing programme for trading and
finishing beef and sheep, we have increased the promotion of our GO-STOCK offering. With good
demand for this popular livestock trading solution we expect to see further demand and utilisation of
GO-STOCK.”
“bidr
®
continues its commitment to offering buyers and sellers of livestock a seamless online experience
whether they are bidding on-farm or at a saleyard auction. Following the launch of the on-farm hybrid
auctions for on-farm/auctioneer sales, bidr
®
announced it will expand into livestreaming auctions at
saleyards from April 2021.”
“Uncertainty around global markets and the effects of COVID-19 are causing farmers to take a more
conservative approach than normal in the cattle and lamb trading space. The venison market has also
been affected with schedules having been reduced by over half with most companies only processing if
they have orders.”

PGG Wrightson Ltd | NZX Announcement 3

“All three categories of our PGW Real Estate business including rural, lifestyle, and residential
experienced the strongest six months of sales in the past six years. Every sector of rural, particularly
sheep and beef, grazing, and finishing properties experienced significant activity with dairy farms also
enjoying heightened interest.”
“The outlook for real estate for the second half of the financial year remains positive subject to the
availability of listings, especially within the lifestyle and residential sectors. We anticipate there will be
a steady flow of rural properties with new rural listings coming to the market ahead of the traditional
autumn selling period.”
“PGW Wool continues to proactively navigate through depressed crossbred wool prices, associated
international demand challenges, and supply chain issues accentuated by impacts of the global
pandemic. Despite these challenges, Operating EBITDA for PGW Wool was up modestly compared to
the same period last year.”
Cashflow and Debt
Cashflow from operating activities saw a $3.9 million inflow; an $18.8 million improvement on the prior
period’s result. Capital expenditure was $1.5 million, $3.0 million lower than the comparative period,
with cashflows from the disposal of property, plant, equipment, and investments totalling $0.5 million.
Net interest bearing debt as at 31 December 2020 was $39.2 million, which was 34% lower than 31
December 2019. PGW renewed and extended its bank facilities during the period.
New Insurance JV Offering
“I am pleased to note the new joint venture relationship that PGW has entered into in recent days with
BrokerWeb Risk Services Limited (“BWRS”) who will take customer referrals and provide leading
insurance broking services to PGW’s customers and the wider rural community.” Mr Guerin said.
“The relationship has a strong strategic fit for us given that BWRS already has a solid presence in the
rural sector and our association will provide an excellent opportunity to deliver another important and
tailored service to our customer base. BWRS’s brokers have local knowledge access to market-leading
insurance products and risk advice that our customers will benefit from. Both PGW and BWRS place
customers at the centre of everything we do and focus on building enduring relationships by working
together and delivering outstanding service.”
Outlook
Mr Finlay said “Global markets continue to support New Zealand’s primary exports while international
supply chains may pose some challenges in the short to medium term. Following the roll out of vaccines
in our trading market countries we anticipate these challenges will ease over time. With these dynamics
at play we are seeing reasonable confidence from our farmer and grower customers and remain
optimistic about the prospects for the sector. Although there will always be unforeseen events, PGW
and the country are in a stronger position than we were at the outbreak of the virus to navigate these.”
“The Directors are very pleased with the progress achieved in the first half and the financial performance
of the business. We remain cautiously optimistic about the remainder of the financial year and believe
the company is well placed to deliver our 2021 full year Operating EBITDA guidance of around $57
million.”

For media enquiry contact:
Julian Daly
General Manager Corporate Affairs / Company Secretary
PGG Wrightson Limited
Mobile: +64 27 553 3373
* All references to PGG Wrightson Limited refer to the company, its subsidiaries and interests in associates and jointly
controlled entities.
** 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. 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

---

2021 HALF YEAR RESULTS
PRESENTATION
—
For the six months ended 31 December 2020
23 February 2021

HIGHLIGHTS
—

TRADING PERFORMANCE
& DIVIDEND
—
Half year Operating earnings
before interest, tax,
depreciation, and amortisation
(“Operating EBITDA”) of $42.1
million was 21% higher than
the comparative period at
$34.7 million.
Net profit after tax of $18.0
million; up $5.3 million from the
comparative period.
A fully imputed interim dividend
of 12 cents per share will be
paid on 24 March 2021 to
shareholders on PGW’s share
register as at 5pm on 3 March
2021.
INTERIM DIVIDEND OF
12 cents
per share, fully imputed
NET PROFIT AFTER TAX
$18.0 million
OPERATING EBITDA
21% higher

OPERATING EBITDA
Three Year Summary
—
HY 2019
($ million)
HY 2020
1
($ million)
HY 2021
1
($ million)
Retail and Water23.031.135.8
Agency1.66.69.5
Other-6.8-3.0-3.2
Total17.834.742.1
1
Including NZ IFRS 16 -leases

INTERIM DIVIDEND
—
An interim dividend
of 12 cents per
share has been
declared.
Dividend to be fully
imputed.
To be paid on 24
March 2021 to
shareholders on the
share register on 3
March 2021.

OUTLOOK FOR FY2021
(Full Year to 30 June 2021)
—
• The Directors are very pleased with the progress achieved in the first half and the financial performance
of the business.
• We remain cautiously optimistic about the remainder of the financial year and believe the company is well
placed to deliver our 2021 full year Operating EBITDAguidance of around $57 million.

DISCLAIMER
—
This presentation has been prepared by PGG Wrightson (“PGW”) with due care and attention.
The Half Year Results 2021 are to 31 December 2020.
Forward looking statements regarding the potential future performance of PGW have been expressed by
management using information currently available. These are based on current expectations, estimates
and assumptions and do not guarantee or predict future performance.
Actual results may differ from those predicted as there are a number of uncertainties and risks beyond
PGW’s control that may affect the results.
Please read this presentation in conjunction with Half Year Results 2021 Announcement and Report.

---

Template
Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer PGG Wrightson Limited
Financial product name/description Ordinary shares
NZX ticker code PGW
ISIN (If unknown, check on NZX
website)
NZREIE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 03/03/2021
Ex-Date (one business day before the
Record Date)
02/03/2021
Payment date (and allotment date for
DRP)
24/03/2021
Total monies associated with the
distribution
1

$9,058,089.96000000
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.16666667
Gross taxable amount
3
$0.16666667
Total cash distribution
4
$0.12000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.02117647
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.04666667
Resident Withholding Tax per
financial product
$0.00833333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Julian Daly
Contact person for this
announcement
Julian Daly
Contact phone number 027 5533373
Contact email address jdaly@pggwrightson.co.nz
Date of release through MAP

23/02/2021





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

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Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer PGG Wrightson Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$499,345 +6.4%
Total Revenue $499,414 +6.4%
Net profit/(loss) from
continuing operations
$18,046 +38.1%
Total net profit/(loss) $18,040 +41.4%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.12

Imputed amount per Quoted
Equity Security
$0.0467

Record Date 03/03/2021
Dividend Payment Date 24/03/2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.03

$1.97

A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the accompanying market commentary and
unaudited interim consolidated financial statements.


Authority for this announcement
Name of person

authorised
to make this announcement
Julian Daly
Contact person for this
announcement
Julian Daly
Contact phone number 027 5533373
Contact email address jdaly@pggwrightson.co.nz
Date of release through MAP

23/02/2021

Unaudited financial statements accompany this announcement.

---

Helping grow the country
Half Year Report
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

2 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
$18.0m
$42.1m
OPERATING EARNINGS
BEFORE INTEREST,
TAX, DEPRECIATION
AND AMORTISATION
(“OPERATING EBITDA”) OF
FULLY IMPUTED
INTERIM DIVIDEND
12¢/share
NET PROFIT AFTER TAX
(“NPAT”) OF
$5.3m or 41%
$7.4m or 21%
HIGHLIGHTS
Strong balance sheet and
improvement in operating
cash flows from the prior
comparative period
Reconfirmed full year
Operating EBITDA
guidance of around
$57 m
Very strong
performances from our
Retail, Livestock and Real
Estate businesses
6%
$499 m
Operating revenue
Fruitfed Supplies Technical Advisor, Chloe Hannah
inspects leaves for mealy bug at a Fruitfed Supplies wine
grape trial site in Marlborough in February 2021
Fruitfed Supplies Orchard-Write portable
wind machine at Osawa Wines near
Hastings, Hawkes Bay in December 2020

CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S
REPORT
Stephen Guerin
Chief Executive Officer
Rodger Finlay
Chairman
3 | PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
PGG Wrightson Limited (“PGW” or “the company”) delivered a
NPAT of $18.0 million from continuing operations which was
up 41% on the corresponding period (1H20, $12.8 million).
Our strong half year results reflect well on the health of the
business and the performance of our people as they continue
to deliver for our customers in the agri-sector that is the
powerhouse of New Zealand’s economy. It is particularly
pleasing to be able to report that our Operating EBITDA for
the six months to 31 December 2020 was $42.1 million; up
21% on the same period last year (1H20, $34.7 million).

“FRUITFED SUPPLIES IS
DIVERSIFIED ACROSS A
RANGE OF CROPS AND
CONTINUES TO ADAPT
TO OUR CUSTOMER
AND MARKET NEEDS.”
4 | PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020Afourer Mandarins at Sherwood
Agriculture Limited in Gisborne
in September 2020

CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S REPORT
CONTINUED
“GROWTH HAS ALSO
BEEN SUPPORTED BY THE
UPTAKE IN OUR NEW PGW
ECOMMERCE OFFERING
WHICH WAS LAUNCHED
IN JUNE 2020.”
5 | PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
Retail & Water
The first six months of the 2021 financial year provided a very good start with all business units
within Retail and Water trading ahead of the corresponding period last year. Operating EBITDA
for this group was $35.8 million (up15%) and revenue was $413.4 million (up 8%) on the solid
performance in the first half last year.
The superior technical ability of our
staff and our very stable rep force,
who are well supported by our
expert technical and R&D teams,
have contributed to an increase in
market share. Growth has also been
supported by the uptake in our new
PGW eCommerce offering which was
launched in June 2020. While online
orders are a relatively small channel
for us at this time we are seeing
orders come in from all corners of the
country which serves to increase the
awareness of our product range, as
well as influencing in-store purchases
and attracting new customers.
In Rural Supplies we have seen solid
growth across most categories.
The outlook for our Rural Supplies
business is tempered with sheep
and beef farmers cautious about the
meat company schedules which are
back on last year. However, dairy
farmers are more positive with solid
pay-outs expected.
The forecast remains very positive
for our Fruitfed Supplies business
with positive returns for the sector
and stability in prices being obtained
by our growers. Crops not affected
by the recent weather events
are in good health, with harvest
for a number of significant crops
underway or commencing shortly.
The horticultural sector continues
to be buoyant, experiencing
good yields, profitable returns,
and a positive outlook, which is
driving investment and further
development. Our market leading
Fruitfed Supplies business is
diversified across a range of crops
and continues to adapt to our
customer and market needs.
We are heartened by the
improvement in our Water
business in its first half trading
results following our restructure
of the business undertaken at the
beginning of this financial year. It is
pleasing to see these early positive
signs and we see room for further
gains for our Water business as
we focus on growing our service
offering.
We are conscious of the challenges
in international supply chains given
widespread disruption caused by
the impacts of COVID-19. We are
remaining vigilant in this space
and doing what we can to mitigate
supply risks for our Agritrade
wholesale and retail businesses. Our
stores have reviewed their forecasts
and stock levels and are ordering for
early delivery to assist with continuity
of supply in coming months.

6 | PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
“WITH CAPITAL AVAILABLE
TO SUPPORT GROWTH OF
OUR GO-STOCK LIVESTOCK
GRAZING PROGRAMME, WE HAVE
INCREASED THE PROMOTION OF
OUR GO-STOCK OFFERING.”
Susan Soppet, Waikato
– 2020 Landmarks Photo Collection

CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S REPORT
CONTINUED
6 yrs
STRONGEST 6 MONTHS OF
REAL ESTATE SALES ACROSS
RURAL, LIFESTYLE AND
RESIDENTIAL CATEGORIES IN
7 | PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
Agency
Trading for our Agency group delivered an Operating EBITDA of $9.5 million for the first
six months of the 2021 financial year, an increase of 44% compared with the same period
last year, and revenue was $84.8 million, in-line with the same period last year.
With many parts of the country
coming out of drought conditions
we saw a number of farmers
rebuilding their capital stock
numbers. Buoyant prices and
widespread rain throughout
the South Island created good
conditions with plenty of feed on-
farm stimulating farmer confidence.
Strong global demand for dairy
persists with farmgate prices
continuing to rise and underpin
confidence in dairy sector.
With capital available to support
growth of our GO-STOCK livestock
grazing programme for trading and
finishing beef and sheep, we have
increased the promotion of our GO-
STOCK offering. With good demand
for this popular livestock trading
solution we expect to see further
demand and utilisation of GO-STOCK.
bidr® continues its commitment
to offering buyers and sellers
of livestock a seamless online
experience whether they are bidding
on-farm or at a saleyard auction.
Following the launch of the on-
farm hybrid auctions for on-farm/
auctioneer sales, bidr® announced
it will expand into livestreaming
auctions at saleyards from April 2021.
Uncertainty around global markets
and the effects of COVID-19 are
causing farmers to take a more
conservative approach than normal
in the cattle and lamb trading space.
The venison market has also been
affected with schedules having been
reduced by over half with most
companies only processing if they
have orders.
All three categories of our PGW
Real Estate business including rural,
lifestyle, and residential experienced
the strongest six months of sales in
the past six years. Every sector of
rural, particularly sheep and beef,
grazing, and finishing properties
experienced significant activity with
dairy farms also enjoying heightened
interest.
The outlook for real estate for the
second half of the financial year
remains positive subject to the
availability of listings, especially
within the lifestyle and residential
sectors. We anticipate there will
be a steady flow of rural properties
with new rural listings coming to
the market ahead of the traditional
autumn selling period.
PGW Wool continues to proactively
navigate through depressed
crossbred wool prices, associated
international demand challenges,
and supply chain issues accentuated
by impacts of the global pandemic.
Despite these challenges, Operating
EBITDA for PGW Wool was up
modestly compared to the same
period last year.

Fruitfed Supplies Technical
Horticultural Representative, Stuart
Paull discusses ornamental cuttings
with Adriana Barada at Ambrosia
Nurseries in Prebbleton, Canterbury
in September 2020
60 +250
PERFORMED BY PGW TECHNICAL TEAM
TRIALS
CONDUCTED
INDIVIDUAL
TREATMENTS
8 | PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020

CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S REPORT
CONTINUED
9 | PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
Cashflow and Debt
Cashflow from operating activities saw a $3.9 million
inflow, an $18.8 million improvement on the prior period’s
result. Capital expenditure was $1.5 million, $3.0 million
lower than the comparative period, with cashflows
from the disposal of property, plant, equipment, and
investments totalling $0.5 million.
Net interest bearing debt as at 31 December 2020 was
$39.2 million, which was 34% lower than 31 December
2019. PGW renewed and extended its bank facilities
during the period.
Dividend
Following the strong performance of the business over
the first half the Board declared a fully imputed interim
dividend of 12 cents per share which will be paid on 24
March 2021 to shareholders on PGW’s share register as at
5pm on 3 March 2021.
Environment and Sustainability
During the first half of the financial year the Retail
Environmental Strategy group has been involved in a
range of projects. They studied and summarised the
new Healthy Water Ways legislation and ran more than
40 internal virtual training sessions across the country,
updating and informing many members of our business
units about the immediate changes to policy and the
effect it will have on our customers and their operations.
The team also worked on recycling initiatives within our
store network, with our new Alexandra Fruitfed Supplies
and Rural Supplies store being set up as a trial site for
new environmentally beneficial practices around waste
management.
At a national level, the team has contributed to
various bodies in developing sustainability policies by
contributing to and interacting with the Ministry for
Primary Industries, the Ministry for the Environment, the
Environment Protection Authority, and Agrecovery.
PGG Wrightson Technical Field Representative, Allister Gauldie
inspects a kale crop with Richard Blackmore at Birch-Holm
Holdings Limited in Seaward Downs, Southland in December 2020
HELD ACROSS THE
COUNTRY TO UPDATE AND
INFORM THE BUSINESS ON
THE HEALTHY WATER WAYS
LEGISLATION.
40 +
INTERNAL VIRTUAL
TRAINING SESSIONS

CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S REPORT
CONTINUED
10 | PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
Safety and Wellbeing
Leading Safety undertook a PGW Group wide Safety and
Wellbeing Review in July 2020 to assess PGW’s progress
in our approach to safety and wellbeing in the areas
of strategy, framework, culture, and compliance. The
findings have helped to reshape our Safety and Wellbeing
Strategy and Roadmap, which will be a focus for the
remainder of FY21 and
beyond.
A key objective of our Safety and Wellbeing strategy is
to ensure our senior leaders visibly demonstrate their
commitment in this area through their actions. Two
activities our senior leaders are actively participating in
at our sites are Leadership Safety Walks and conducting
Critical Control Checks to learn and understand what can
be done to help improve our safety performance. These
are designed to engage with team members in the field
by observing how work is done and how effective our
controls (identified from our Critical Risk Standards) have
been implemented to keep our people safe.
As part of our culture of learning, we also reviewed our
response to the announcement of the global COVID-19
pandemic and lockdowns. It was pleasing to learn
our people considered our response to the COVID-19
lockdowns were managed very well and with many
valuable lessons learnt. Most pleasingly, the review
highlighted the talents of our people, with a recurring
theme that there was a willingness to just get on and do
what was required in some challenging and uncertain
conditions. The key recommendations to ensure PGW
is better prepared for subsequent lockdowns (or other
large scale disruptive events) have been taken on
board to aid preparedness. A number of actions have
been implemented, including a refresh of our Business
Continuity Policy and business resilience initiatives.
Our COVID-19 Response Working Group remains in
place and meets regularly to monitor developments and
consider developments as they arise.
New Insurance JV Offering
PGW has entered into a new joint venture relationship in
recent days with BrokerWeb Risk Services Limited (“BWRS”)
who will take customer referrals and provide leading
insurance broking services to PGW’s customers and the
wider rural community.
The relationship has a strong strategic fit for us given
that BWRS already has a solid presence in the rural sector
and our association will provide an excellent opportunity
to deliver another important and tailored service to our
customer base. BWRS’s brokers have local knowledge,
access to market-leading insurance products, and risk
advice that our customers will benefit from. Both PGW
and BWRS place customers at the centre of everything
we do and focus on building enduring relationships by
working together and delivering outstanding service.
Outlook
Global markets continue to support New Zealand’s
primary exports while international supply chains may
pose some challenges in the short to medium term.
Following the roll out of vaccines in our trading market
countries we anticipate these will ease over time.
With these dynamics at play we are seeing reasonable
confidence from our farmer and grower customers and
remain optimistic about the prospects for the sector.
Although there will always be unforeseen events, PGW
and the country are in a stronger position than we were at
the outbreak of the virus to navigate these.
The Directors are very pleased with the progress achieved
in the first half and the financial performance of the
business. We remain cautiously optimistic about the
remainder of the financial year and believe the company is
well placed to deliver our 2021 full year Operating EBITDA
guidance of around $57 million.
Acknowledgements
The growth of the business and the results achieved
would not have been possible without the enduring
commitment and enthusiasm demonstrated by of all
our PGW team. On behalf of the Board and Executive
team, we thank our 1,800 exceptional individuals for their
extraordinary effort.
We also thank our loyal customers, suppliers, and
shareholders for their continued support.
Rodger Finlay
Chairman
Stephen Guerin
Chief Executive Officer

11 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
CONTAINED ON PAGES 12– 24
HAVE BEEN APPROVED BY
THE BOARD OF DIRECTORS
ON 22 FEBRUARY 2021.
Rodger Finlay
Chairman
David Cushing
Director and Audit
Committee Chair
KEY
FINANCIAL
DISCLOSURES
FOR THE SIX MONTHS ENDED
31 DECEMBER 2020
$
PGG Wrightson Technical Field
Representative, Henry Wardell utilises
the Greenlight Grower Management
(GLGM) crop monitoring app in a
field of wheat with Hayden Cowan
at H J Cowan in Greta Valley, North
Canterbury in September 2020

12 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
KEY FINANCIAL DISCLOSURES
UNAUDITED AUDITED UNAUDITED
DEC 2020 JUN 2020 DEC 2019
NOTE $000 $000 $000
Continuing operations
Operating revenue 499,345 788,036 469,403
C
ost of sales (375,960) (583,855) (348,811)
Gross profit 123,385 204,181 120,592
Other income 69 300 112
Emplo
yee expenses (59,742) (113,964) (61,347)
Other operating expenses (21,621) (45,327) (24,646)
O
perating EBITDA 42,091 45,190 34,711
Non-operating gains/(losses) 588 132 (279)
I
mpairment and fair value gains/(losses)
64

(807)

–
Depreciation and amortisation expense
(14,670)

(29,464)

(14,454)
EBIT 28,073 15,051 19,978
Net interest and finance costs
1

(2,884)

(5,032)

(1,920)
Profit from continuing operations before income tax
25,189

10,019

18,058
Income tax benefit/(expense) (7,143) (2,886) (4,987)
Profit from continuing operations, net of income tax 18,046 7,133 13,071
D
iscontinued operations
Results from discontinued operations, net of income tax
(6) (371) (315)
Gain on sale of discontinued operations, net of income tax – 1,078 –
Profit/(loss) from discontinued operations, net of income tax (6) 707 (315)
Net profit after tax 18,040 7,840 12,756
Profit attributable to:
Shareholders of the Company 18,040 7,840 12,756
Non-controlling interest – – –
Net profit after tax 18,040 7,840 12,756
B
asic & diluted earnings per share (EPS)
UNAUDITED AUDITED UNAUDITED
D
EC 2020
J
UN 2020
D
EC 2019
NOTE $ $ $
Basic & diluted EPS on issued ordinary shares at the end of period 2 0.239 0.104 0.169
Basic & diluted EPS on issued ordinary shares at the end of period
2

0.239

0.094

0.173

– continuing operations
Basic & diluted EPS on a weighted average basis
2

0.239

0.050

0.053
Basic & dilut
ed EPS on a weighted average basis – continuing operations
2

0.239

0.045

0.055
T
he accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the six months ended 31 December 2020

13 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the six months ended 31 December 2020
UNAUDITED AUDITED UNAUDITED
DEC 2020 JUN 2020 DEC 2019
$000 $000 $000
Net profit after tax 18,040 7,840 12,756
Other comprehensive income/(loss):
Continuing operations
Items that will never be reclassified to profit or loss
Changes in fair value of equity instruments
136 – –
Remeasurements of defined benefit liability 4,255 (3,942) 2,985
Tax on remeasurements of defined benefit liability
(1,192)

1,104

(836)
Other comprehensive income/(loss) for continuing operations 3,199 (2,838) 2,149
Total comprehensive income for the period 21,239 5,002 14,905
T
otal comprehensive income attributable to:
Shar
eholders of the Company
21,239

5,002

14,905
Non-
controlling interest
–

–

–
T
otal comprehensive income for the period
21,239

5,002

14,905
T
he accompanying notes form an integral part of these financial statements.

14 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT
For the six months ended / as at 31 December 2020
(a) Operating Segments
The Group has two primary operating segments, Agency and Retail
& Water, which are the Group's strategic divisions. These operating
segments operate within New Zealand.
The two operating segments offer different products and services,
and are managed separately because they require different skills,
technology and marketing strategies. 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.
The Group's segments are described below:
–

A
gency: This segment derives its revenue primarily from
commissions in respect of rural Livestock, Wool and Real Estate
transactions. This segment also derives revenue from wool and
velvet product sales, and interest revenue from its Go receivables.
–
Retail & Water: This segment includes the Rural Supplies and
Fruitfed Supplies retail operations, PGG Wrightson Water, PGW
Consulting, Agritrade, ancillary sales support and supply chain
functions. This segment derives its revenue primarily from the
sale of goods as well as the design, installation and servicing of
irrigation solutions.
–
O
ther: Other relates to certain Group Corporate activities such
as Governance, Finance, Treasury, Risk and Assurance and other
support services (including corporate property services) and
includes consolidation/elimination adjustments. The Marketing
function derives sales revenue from its rewards and on-charging
programmes.
–

D
iscontinued operations: Relates to PGG Wrightson Seeds
Holdings Limited together with its subsidiaries and investments in
jointly controlled entities (formerly the Seed and Grain segment)
which was sold in May 2019; and PGW Rural Capital Limited
(PGWRC) which was established in 2012 to hold and recover
certain excluded loans related to the sale of the Group's finance
subsidiary, PGG Wrightson Finance Limited. Also includes the
Standardbred business (previously included within Agency) which
was closed in January 2020.
Assets and liabilities allocated to each business unit combine to form
total assets and liabilities for the Agency and Retail & Water business
segments. Certain other assets and liabilities are held at a Corporate
level including those for the Corporate functions noted above. Similarly,
the profit/loss for each business unit combines to form total profit/
loss of the Agency and Retail & Water business segments. Certain
other revenues and expenses are held at the Corporate level for the
Corporate functions noted above.
Corporate costs allocation
The Group allocates certain corporate costs to an operating segment
where they can be directly attributed to that segment or using the
following methods:
–

IT har
dware, support, licence and other costs are attributed on a
per user basis.
–

P
roperty costs which are not directly attributable are allocated on a
property space utilisation basis.
–
Business operations costs (
Accounts Payable, Accounts Receivable,
Call Centre) are allocated based on FTE usage by each operating
segment or transactional volumes. Credit Services costs are
allocated to the operating segment to which overdue accounts
relate.
Other costs such as non-operating gains/losses, impairment and fair
value gains/losses, net interest and finance costs, income tax expense
and the results of discontinued operations are not fully allocated by the
Group across the operating segments. The Group Governance, Finance,
Treasury, and Risk and Assurance continue to be reported outside of
the operating segments.
(b) Geographical Segment
The Group operates within New Zealand only and its revenue is derived
primarily from New Zealand.

15 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
ADDITIONAL FINANCIAL DISCLOSURES
The accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT (CONTINUED)
For the six months ended / as at 31 December 2020
(c) Operating Segment Information
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTAL
UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED
DEC 2020 JUN 2020 DEC 2019 DEC 2020 JUN 2020 DEC 2019 DEC 2020 JUN 2020 DEC 2019 DEC 2020 JUN 2020 DEC 2019 DEC 2020 JUN 2020 DEC 2019
$000
$000
$000

$000

$000

$000

$000
$000
$000

$000
$000
$000

$000
$000
$000
Sales revenue 33,474 72,154 36,083 401,233 604,409 373,827 1,065 2,816 1,815 – – – 435,772 679,379 411,724
Commission revenue 48,944 88,770 46,232 51 97 62 62 112 60 – – – 49,057 88,979 46,354
Construction contract revenue – – – 11,749 13,640 8,423 – – – – – – 11,749 13,640 8,423
Interest revenue on Go livestock receivables 2,018 4,258 2,106 – – – – – – – – – 2,018 4,258 2,106
Debtor interest charges 341 659 375 388 962 497 20 159 (76) – – – 749 1,780 796
T
otal external operating revenues 84,777 165,841 84,796 413,421 619,108 382,809 1,147 3,087 1,799 – – – 499,345 788,036 469,403
Operating EBITDA
9,482

15,706

6,572

35,808

34,729

31,120

(3,199)

(5,245)

(2,981)

–

–

–

42,091

45,190

34,711
Non-
operating gains/(losses)
52

78

6

765

31

251

(229)

23

(536)

–

–

–

588

132

(279)
I
mpairment and fair value gains/(losses) 60 243 – – (1,425) – 4 375 – – – – 64 (807) –
Depreciation and amortisation expense (4,346) (8,907) (4,347) (8,317) (16,388) (8,000) (2,007) (4,169) (2,107) – – – (14,670) (29,464) (14,454)
EBIT
5,248 7,120 2,231 28,256 16,947 23,371 (5,431) (9,016) (5,624) – – – 28,073 15,051 19,978
Net int
erest and finance costs
(535)

(1,672)

(605)

(1,645)

(3,062)

(1,571)

(704)

(298)

256

–

–

–

(2,884)

(5,032)

(1,920)
P
rofit/(loss) from continuing operations before income tax
4,713

5,448

1,626

26,611

13,885

21,800

(6,135)

(9,314)

(5,368)

–

–

–

25,189

10,019

18,058
I
ncome tax benefit/(expense)
(1,275)

(1,686)

(400)

(7,727)

(3,707)

(5,963)

1,859

2,507

1,376

–

–

–

(7,143)

(2,886)

(4,987)
Profit/(loss) from continuing operations, net of income tax 3,438 3,762 1,226 18,884 10,178 15,837 (4,276) (6,807) (3,992) – – – 18,046 7,133 13,071
P
rofit/(loss) from discontinued operations, net of income tax
–

–

–

–

–

–

–

–

–

(6)

707

(315)

(6)

707

(315)
N
et profit/(loss) after tax
3,438

3,762

1,226

18,884

10,178

15,837

(4,276)

(6,807)

(3,992)

(6)

707

(315)

18,040

7,840

12,756
S
egment assets
143,349

184,714

178,352

381,579

241,827

373,837

18,915

32,872

18,011

7

–

2

543,850

459,413

570,202
A
ssets held for sale
–

–

23

63

40

218

–

–

2,003

–

–

–

63

40

2,244

Total segment assets
143,349 184,714 178,375 381,642 241,867 374,055 18,915 32,872 20,014 7 – 2 543,913 459,453 572,446
Total segment liabilities

(57,770)

(87,481)

(68,867)

(255,441)

(145,907)

(255,068)

(52,760)

(69,345)

(75,055)

–

(18)

–

(365,971)

(302,751)

(398,990)
(d) Impact of NZ IFRS 16
Below are additional disclosures to provide comparative information for reporting periods prior to the introduction of NZ IFRS 16 (i.e. periods prior to 1 July 2019).
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTAL
UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED
D
EC 2020
J
UN 2020
D
EC 2019
D
EC 2020
J
UN 2020
D
EC 2019
D
EC 2020
J
UN 2020
D
EC 2019
D
EC 2020
J
UN 2020
D
EC 2019
D
EC 2020
J
UN 2020
D
EC 2019
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Operating EBITDA including NZ IFRS 16 9,482 15,706 6,572 35,808 34,729 31,120 (3,199) (5,245) (2,981) 42,091 45,190 34,711
Less NZ IFRS 16 adjustments:
Other operating expenses
3,606 7,300 3,630 6,495 12,773 6,317 711 1,671 916 – – – 10,812 21,744 10,863
Operating EBITDA excluding NZ IFRS 16 5,876 8,406 2,942 29,313 21,956 24,803 (3,910) (6,916) (3,897) – – – 31,279 23,446 23,848

16 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2020
UNAUDITED AUDITED UNAUDITED
DEC 2020 JUN 2020 DEC 2019
NOTE $000 $000 $000
Cash flows from operating activities
Cash was provided from:
Receipts from customers
406,796 809,733 387,793
Dividends received 1 17 2
Interest received
2,784

6,622

3,436
409,581

816,372

391,231
C
ash was applied to:
Payments to suppliers and employees
(402,684)

(772,069)

(400,090)
L
ump sum contributions to defined benefit plans (ESCT inclusive)
(563)

–

–
I
nterest paid
(346)

(923)

(387)
I
nterest paid on lease liabilities
(2,049)

(4,185)

(2,106)
I
ncome tax paid (3) (4,968) (3,519)
(405,645) (782,145) (406,102)
Net cash inflow/(outflow) from operating activities 3,936 34,227 (14,871)
C
ash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment and assets held for sale 401 855 760
P
roceeds from sale of investments
136

–

–
537

855

760
C
ash was applied to:
Purchase of property, plant and equipment
(1,503)

(5,419)

(2,293)
P
urchase of intangibles
(23)

(6,456)

(2,256)
I
nvestment sale costs (15) – –
(1,541)

(11,875)

(4,549)
N
et cash inflow/(outflow) from investing activities (1,004) (11,020) (3,789)
C
ash flows from financing activities
Cash was provided from:
Increase in external borrowings and bank overdraft
–

47,320

57,320
–

47,320

57,320
C
ash was applied to:
Share repurchase and cancellation
–

(234,000)

(234,000)
Dividends paid t
o shareholders
–

(12,564)

(5,713)
R
epayment of external borrowings and bank overdraft
(9,000)

–

–
R
epayment of principal portion of lease liabilities (9,036) (17,586) (8,757)
(18,036)

(264,150)

(248,470)
N
et cash inflow/(outflow) from financing activities
(18,036)

(216,830)

(191,150)
Net incr
ease/(decrease) in cash held
(15,104)

(193,623)

(209,809)
Opening cash

16,868

210,491

210,491
C
ash and cash equivalents
3

1,764

16,868

682
T
he accompanying notes form an integral part of these financial statements.

17 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
RECONCILIATION OF PROFIT AFTER TAX
WITH NET CASH FLOW FROM OPERATING ACTIVITIES
For the six months ended 31 December 2020
UNAUDITED AUDITED UNAUDITED
DEC 2020 JUN 2020 DEC 2019
$000 $000 $000
Profit after taxation 18,040 7,840 12,756
Add/(deduct) non-cash/non-operating items:
Depreciation and amortisation
14,671 29,503 14,478
Impairment and fair value losses (64) 807 133
Bad debts wr
itten off (net) 690 489 75
Reversal of Work-in-Progress expensed in the current period 750 – –
Loss/(profit) on sale of assets/investments and lease terminations
(579)

(1,259)

(92)
Loss/(profit) from equity accounted investees 1 (8) 5
Foeign exchange loss/(gain) (32) 135 (72)
D
eferred tax expense/(benefit) 1,248 788 1,338
Defined benefit expense/(gain) (68) 13 (3)
Pension contributions not expensed through profit or loss (563) – –
Other non-cash/non-operating items 21 (302) (1,301)
Add/(deduct) movement in working capital items:
Change in inventories (18,021) (1,110) (21,758)
Change in accounts r
eceivable and prepayments (92,818) 22,825 (102,292)
Change in trade creditors, provisions and accruals 75,719 (22,222) 81,391
Change in income tax payable/receivable 5,888 (3,661) (271)
Change in other current assets/liabilities
(947)

389

742
N
et cash inflow/(outflow) from operating activities
3,936

34,227

(14,871)
T
he accompanying notes form an integral part of these financial statements.

18 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2020
UNAUDITED AUDITED UNAUDITED
DEC 2020 JUN 2020 DEC 2019
NOTE $000 $000 $000
ASSETS
C
urrent
Cash and cash equivalents 3 1,764 16,868 682
Short-term derivative assets
1,425

707

1,089
T
rade and other receivables 234,765 122,946 241,598
Go livestock receivables
3

30,582

48,111

38,584
I
ncome tax receivable
–

2,369

–
Inventories
105,136

87,111

107,750
I
ntangible assets 929 2,056 1,037
Assets classified as held for sale
63

40

2,244
O
ther current assets – 4 12
Total current assets
374,664

280,212

392,996
N
on-current
Long-term derivative assets 222 235 454
Deferred tax asset
7,800

10,292

7,802
I
nvestments in equity accounted investees 78 79 66
Other investments
473

471

471
L
ong-term intangible assets 15,829 17,180 16,081
Right-of-use assets
5

101,905

104,625

110,796
P
roperty, plant and equipment 4 42,942 46,330 43,768
Other non-currrent assets
–

29

12
T
otal non-current assets
169,249

179,241

179,450
Total assets
543,913

459,453

572,446
LIABILITIES

Current
D
ebt due within one year
3

21,000

30,000

40,000
Shor
t-term derivative liabilities 584 562 365
Accounts payable and accruals
208,328

132,601

221,050
I
ncome tax payable 3,467 – 1,021
Shor
t-term lease liabilities 16,936 16,506 15,681
Total current liabilities
250,315

179,669

278,117

N
on–current
L
ong-term debt
3

20,000

20,000

20,000
L
ong-term derivative liabilities
–

45

56
L
ong-term lease liabilities 87,929 90,398 93,855
Other long-term liabilities
2,776

2,802

4,067
D
efined benefit liability 4,951 9,838 2,895
Total non-current liabilities
115,656

123,083

120,873
T
otal liabilities
365,971

302,751

398,990
EQUIT
Y
Shar
e capital
372,318

372,318

372,318
R
eserves
10,919

7,586

12,573
R
etained earnings
(205,296)

(223,202)

(211,435)
T
otal equity
177,942

156,702

173,456
T
otal liabilities and equity
543,913

459,453

572,446
T
he accompanying notes form an integral part of these financial statements.

Lavender at Ambrosia Nurseries
in Prebbleton, Canterbury in
September 2020
19 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
ADDITIONAL
FINANCIAL
DISCLOSURES
INCLUDING NOTES TO
THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
31 DECEMBER 2020
$

20 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
PGG WRIGHTSON LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2020
ADDITIONAL FINANCIAL DISCLOSURES
1 NET INTEREST AND FINANCE COSTS
UNAUDITED AUDITED UNAUDITED
DEC 2020 JUN 2020 DEC 2019
$000 $000 $000
Interest income 17 579 529
Interest funding expense
Bank interest on loans and overdraft
(347) (923) (381)
Other interest expense – – (7)
Bank facility fees
(510)

(683)

(305)
(857)

(1,606)

(693)
N
et interest income/(expense) excluding interest on lease liabilities
(840)

(1,027)

(164)
I
nterest on lease liabilities
(2,049)

(4,183)

(2,105)
F
oreign exchange gain/(loss)
Net gain/(loss) on foreign denominated items
(723)

502

(113)
F
air value gain/(loss) on foreign exchange derivatives
728

(324)

462
5 178 349
N
et interest and finance income/(expense) (2,884) (5,032) (1,920)
2 EARNINGS PER SHARE (EPS) AND NET TANGIBLE ASSETS (NTA)
UNAUDITED AUDITED UNAUDITED
DEC 2020 JUN 2020 DEC 2019
000 000 000
Issued ordinary shares at the end of reporting period 75,484 75,484 75,484
Weighted average number of ordinary shares
Issued ordinary shares at the beginning of reporting period
75,484

754,839

754,839
Ordinary shares issued due to 2:1 share split – 663,845 573,348
Ordinary shares repurchased and cancelled – (663,845) (573,348)
Ordinary shares reduced due to 1:10 share consolidation – (597,460) (516,013)
Weighted average number of ordinary shares outstanding
during the reporting period 75,484 157,379 238,826
UNAUDITED AUDITED UNAUDITED
D
EC 2020
J
UN 2020
D
EC 2019
$000 $000 $000
Profit net of tax attributable to Shareholders of the Company 18,040 7,840 12,756
Profit from continuing operations (net of tax) attributable to Shareholders of the Company
18,046

7,133

13,071
N
et tangible assets
Total assets

543,913

459,453

572,446
T
otal liabilities
(365,971)

(302,751)

(398,990)
less
intangible assets
(16,758)

(19,236)

(17,118)
less
deferred tax
(7,800)

(10,292)

(7,802)
N
et tangible assets
153,384

127,174

148,536

21 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
PGG WRIGHTSON LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2020
ADDITIONAL FINANCIAL DISCLOSURES
2 EARNINGS PER SHARE (EPS) AND NET TANGIBLE ASSETS (NTA) (CONTINUED)
UNAUDITED AUDITED UNAUDITED
D
EC 2020
J
UN 2020
D
EC 2019
$ $ $
Basic EPS on issued ordinary shares at the end of period 0.239 0.104 0.169
Basic EPS on issued ordinary shares at the end of period – continuing operations 0.239 0.094 0.173
Basic EPS on a w
eighted average basis 0.239 0.050 0.053
Basic EPS on a weighted average basis – continuing operations 0.239 0.045 0.055
NT
A per issued ordinary shares at the end of period
2.032

1.685

1.968
3 CASH AND FINANCING FACILITIES
UNAUDITED AUDITED UNAUDITED
D
EC 2020
J
UN 2020
D
EC 2019
$000 $000 $000
Cash and cash equivalents 1,764 16,868 682
Current financing facilities (21,000) (30,000) (40,000)
Term financing facilities
(20,000)

(20,000)

(20,000)
N
et interest-bearing (debt)/cash and cash equivalents
(39,236)

(33,132)

(59,318)
Go livestock receivables 30,582 48,111 38,584
Net interest-bearing (debt)/cash and cash equivalents after
adjusting for Go livestock receivables (8,654) 14,979 (20,734)
Financing facilities
During the period, the Company renegotiated its syndicated bank facility. The amended facility, which commenced on 9 November 2020, provides
the following:
– Term debt facility of $60.00 million maturing on 2 November 2022
– Working capital facilities of up to $70.00 million maturing on 2 November 2022 (subject to an annual Clean Down)
The syndicated facilities fund the general corporate activities of the Group, the seasonal fluctuations in working capital, and the Go livestock
receivables.
The Company has granted a general security deed and mortgage over all its wholly-owned New Zealand assets to a security trust. Bank of New
Zealand acts as facility agent and security trustee for the banking syndicate, which comprises Bank of New Zealand, Cooperatieve Rabobank U.A.
(New Zealand branch) and Westpac New Zealand Limited. 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, together with limits for Go receivables,
capital expenditure and asset disposals.
The syndicated facility agreement allows the Group, subject to certain conditions, to enter into additional facilities outside of the Company's
syndicated facility. The additional facilities are guaranteed by the security trust. These facilities amounted to $6.58 million as at 31 December 2020.
–

O
verdraft facilities of $3.00 million
–
Guarant
ee, letters of credit and trade finance facilities of $3.58 million

22 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
PGG WRIGHTSON LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2020
ADDITIONAL FINANCIAL DISCLOSURES
4 PROPERTY, PLANT AND EQUIPMENT
Acquisitions
During the period to 31 December 2020, the Group acquired assets with a cost of $0.75 million (30 June 2020: $5.42 million, 31 December 2019:
$2.29 million).
Disposals
The Group disposed of assets with a net book value of $1.93 million during the period to 31 December 2020 (30 June 2020: $0.71 million,
31 December 2019: $0.52 million), resulting in a gain on disposal of $0.61 million (30 June 2020 Gain: $0.15 million, 31 December 2019 Gain: $0.08
million).
5 RIGHT-OF-USE ASSETS
Additions, modifications & reassessments
During the period to 31 December 2020, the Group had lease additions of $4.49 million (30 June 2020: $17.14 million, 31 December 2019: $10.80
million). Lease modifications and reassessments resulted in an increase in right-of-use assets of $2.26 million (30 June 2020 Decrease: $0.54 million,
31 December 2019 Increase: $0.88 million).
Terminations
During the period to 31 December 2020, the Group had lease terminations which resulted in a reduction in right-of-use assets of $0.40 million (30
June 2020: Nil, 31 December 2019: Nil).
6 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A. PGG Wrightson Loyalty Reward Programme
The Group recognises a provision for the expected level of points redemption from the PGG Wrightson Loyalty Reward Programme. As at 31
December 2020, the balance of live points which does not form part of the recognised provision total $0.09 million (30 June 2020: $0.09 million; 31
December 2019: $0.09 million). Losses are not expected to arise from this contingent liability.
B.
C
ontingent liabilities
The Group receives client claims from time to time as part of the ordinary course of business and these claims are reviewed on a case by case
basis to determine validity. As at 31 December 2020, the Group was in the process of reviewing certain claims for the supply of goods which are
typically the responsibility of suppliers under terms of trade. The amount of any potential obligation in respect of these claims cannot be estimated
with sufficient reliability and therefore, with the exception of the warranty provision of $0.5 million (30 June 2020: $0.4 million), the Group has no
provisioning in respect of these claims.
C.

C
ontingent assets
The Group is pursuing a claim against a contractual counterparty for repudiation of contract. The Directors are confident in the validity of the claim,
however no receivable has been recognised as at 31 December 2020 as the outcome of the claim remains uncertain.
7 SEASONALITY OF OPERATIONS
The Group is subject to significant seasonal fluctuations. The Retail businesses' earnings are weighted towards the first half of the financial year as
demand for New Zealand farming inputs are generally weighted towards the spring season. Livestock trading is weighted towards the second half
of the financial year in order for farmers to maximise their income as New Zealand generally has spring calving and lambing. 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.

23 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
PGG WRIGHTSON LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2020
ADDITIONAL FINANCIAL DISCLOSURES
8 SUBSEQUENT EVENTS
Dividend
On 22 February 2021, the Directors of PGG Wrightson Limited resolved to pay an interim dividend of 12 cents per share on 24 March 2021 to the
shareholders on the Company's share register as at 5.00pm on 3 March 2021. This dividend will be fully imputed.
9 REPORTING ENTITY
PGG Wrightson Limited (the "Company") is a company domiciled in New Zealand and registered under the Companies Act 1993 in New Zealand.
The Company's registered office is at 1 Robin Mann Place, Christchurch. The Company is listed on the New Zealand Stock Exchange and is an FMC
Entity for the purposes of the Financial Markets Conduct Act 2013.
The interim consolidated financial statements of PGG Wrightson Limited for the six months ended 31 December 2020 comprise the Company and
its subsidiaries (together referred to as the "Group").
The Group is primarily involved in the provision of goods and services within the agricultural and horticultural sectors.
10 BASIS OF PREPARATION
Statement of compliance
These interim consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
("NZ GAAP"). They comply with International Financial Reporting Standards ("IFRS) issued by the International Accounting Standards Board,
the New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable Financial Reporting Standards as
appropriate for a Tier 1 for-profit entity, and in particular NZ IAS 34 Interim Financial Reporting.
These interim consolidated financial statements do not include all of the information required for full annual consolidated financial statements.
Unless otherwise specified, the same accounting policies and methods of computation are followed in the interim consolidated financial
statements as applied in the Group's latest annual audited consolidated financial statements. Certain comparative amounts have been reclassified
to conform with the current period's presentation, including the treatment of $4.7 million of fuel oncharge revenue and corresponding cost of
sales in the December 2019 comparative period that have now been netted, resulting in no change to gross profit or net profit after tax.
These interim consolidated financial statements were approved by the Board of Directors on 22 February 2021.
Standards issued but not yet effective
A number of new standards and interpretations are not yet effective for the period ended 31 December 2020 and have not been applied
in preparing these interim consolidated financial statements. These standards are not expected to have a material impact on the Group's
financial
results.

24 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2020
REALISED CAPITAL

SHARE AND
REVALUATION
DEFINED
BENEFIT
F
AIR VALUE
RE
TAINED
T
OTAL
CAPITAL RESERVE PLAN RESERVE RESERVE EARNINGS EQUITY
$000 $000 $000 $000 $000 $000
Balance at 1 July 2019 606,318 24,662 (11,672) (2,566) (218,478) 398,264
Total comprehensive income for the period
Profit or loss
–

–

–

–

12,756

12,756
O
ther comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax – – 2,149 – – 2,149
Total other comprehensive income
–

–

2,149

–

–

2,149
T
otal comprehensive income for the period – – 2,149 – 12,756 14,905
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation
(234,000) – – – – (234,000)
Dividends to shareholders
–

–

–

–

(5,713)

(5,713)
T
otal contributions by and distributions to shareholders (234,000) – – – (5,713) (239,713)
B
alance at 31 December 2019
372,318

24,662

(9,523)

(2,566)

(211,435)

173,456
Balance at 1 Januar
y 2020 372,318 24,662 (9,523) (2,566) (211,435) 173,456
Total comprehensive income for the period
Profit or loss – – – – (4,916) (4,916)
Other comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax
–

–

(4,987)

–

–

(4,987)
T
otal other comprehensive income – – (4,987) – – (4,987)
Total comprehensive income for the period
–

–

(4,987)

–

(4,916)

(9,903)
T
ransactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders – – – – (6,851) (6,851)
Total contributions by and distributions to shareholders
–

–

–

–

(6,851)

(6,851)
B
alance at 30 June 2020
372,318

24,662

(14,510)

(2,566)

(223,202)

156,702
Balance at 1 July 2020

372,318

24,662

(14,510)

(2,566)

(223,202)

156,702
T
otal comprehensive income for the period
Profit or loss

–

–

–

–

18,040

18,040
Other comprehensive income
Changes in fair value of equity instruments
–

–

–

136

–

136
D
efined benefit plan actuarial gain/(loss), net of tax
–

–

3,063

–

–

3,063
T
otal other comprehensive income
–

–

3,063

136

–

3,199
T
otal comprehensive income for the period
–

–

3,063

136

18,040

21,239
T
ransfer to retained earnings
–

–

134

–

(134)

–
B
alance at 31 December 2020
372,318

24,662

(11,313)

(2,430)

(205,296)

177,942

25 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2020
PGG WRIGHTSON LIMITED
CORPORATE DIRECTORY
Company number 142962
NZBN 9429040323497
Board of Directors
for the six months ended
31 December 2020
Rodger Finlay
Chairman
Joo Hai Lee
Deputy Chairman
David Cushing
Sarah Brown
U Kean Seng
Executive Team
for the six months ended 31
December 2020
Stephen Guerin
Chief Executive Officer
Peter Scott
Chief Financial Officer
Julian Daly
General Manager Corporate Affairs/
Company Secretary
Rachel Shearer
General Manager Human Resources
Nick Berry
General Manager Retail & Water
Peter Newbold
General Manager Livestock & Real Estate
Grant Edwards
General Manager Wool
Peter Moore
General Manager Livestock Ventures
& Partnerships
Registered Office
PGG Wrightson Limited
1 Robin Mann Place
Christchurch Airport
Christchurch 8053
PO Box 292
Christchurch 8140
Telephone:
0800 10 22 76 (NZ only)
+64 3 372 0800 (International)
Email: enquiries@pggwrightson.co.nz
Auditors
KPMG
Level 5
79 Cashel Street
PO Box 1739
Christchurch 8140
Telephone +64 3 363 5600
Managing your shareholding online:
To change your address, update your payment instructions and to
view your investment portfolio, including transactions, please visit:
www.investorcentre.com/nz
General enquiries can be directed to:
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland 0622
enquiry@computershare.co.nz
Private Bag 92119, Auckland 1142,
New Z
ealand
Telephone +64 9 488 8777
Facsimile +64 9 488 8787
Please assist our registrar by quoting your
CSN or shareholder number.

PGG Wrightson Real Estate Salesperson,
Richard Thomson views a Waingaro
property near Raglan with the vendors in
September 2020