Annual Report for Financial Year to 30 June 2022

For the year ended 30 June 2022 | Mō te tau i mutu i te 30 Hune 2022
Annual Report
Pūrongo ā-tau
Helping grow the country

ANNUAL REPORT 2022
|
1
Performance
Highlights

Tau Pūtea 2022 | Ngā Whakatutukitanga Hira
2022 Financial Year
Front cover image: PGG Wrightson Technical Horticultural Representative
for Fruitfed Supplies, Alastair Reed, discusses canopy density and vigour
with Adam Alexander, owner of Cultivate Co., an organic orchard in
Katikati, near Tauranga, Bay of Plenty.
PGG Wrightson Technical Field
Representative, Lester Howden, discusses
the benefits to stock after putting in a
water scheme supplied by PGG Wrightson
Water over the summer months with Andy
Wells, owner of Dunmore Farms Limited,
near Clinton, South Otago.
$24.3m
$67.2m
30¢/share
Operating Earnings before interest,
tax, depreciation and amortisation
(“Operating EBITDA”) of
Fully imputed dividends
for the year of
Net Profit After Tax (“NPAT”) of
$1.6m or 7%
$11.1m or 20%

PGW Group Strategic
2
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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3
Share Price
Post Share Consolidation (NZ$)
PGW share price (from 13 August 2019 to 30 June 2022).
13 AUG 19 13 FEB 20 13 AUG 20 13 FEB 21 13 AUG 21 13 FEB 22 30 JUN 22
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0
!
"
#
$
%
&
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(
!"#$
Results and Measures
Ā Mātau Otinga me Ngā Whakaritenga
Financial Performance
Whakaaturanga Pūtea
Financial Growth Measures
+ 29%
KPI:
Normalised EBIT
1
growth
exceeding CPI
2
EBIT excluding non-operating gains/
(losses) and impairment and fair value
gains/(losses)
+ 38%
KPI:
Total shareholder return
exceeding 10% target
FY22 result:
FY22 result:
Safety Performance Measure
since FY20 baseline
3%
KPI:
Safety and wellbeing
TRIFR
3

➔
FY22 result:
Customer Experience Measure
See also further commentary on these PGW Group
Strategic Results and Measures on page 8.
from previous year’s NPS survey
KPI:
Target incremental
improvement in
PGW Group NPS
4
5 pts
➔
FY22 result:
1
Earnings Before Interest and Taxes
2
Consumer Price Index
3
Total Recordable Injury Frequency Rate
4
Net Promoter Score
Operating EBITDA
70
60
50
40
30
20
10
0
-10
2020 2021 2022
Retail & Water
Agency
Corporate
Total Operating EBITDA
33
38
52
16
25
22
-7-7-7
42
56
67
Revenue
1000
800
600
400
200
0
2020 2021 2022
Profit or Loss
30
25
20
15
10
5
0
2020 2021 2022
8
788
23
848
24
953
All Business Units
$ million$ million
$ million
All Business Units Total Revenue
Three-year summary post divestment of PGG Wrightson Seeds.

PGG Wrightson Store Manager, Andrew Baker,
discusses using Maxcare Calf Milk Replacer with
Kirsty Bodle, co-owner of Braintra Farms Limited,
near Winton, Southland.
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PGG WRIGHTSON LIMITED
Contents | Ngā Kaupapa
Annual Shareholders’ Meeting
18 Oc
tober 2022
Half-year earnings announcement
21 Februar
y 2022
Year-end earnings announcement
15 August 2022
Introduction
2022 Financial Year Performance Highlights 1
PGG Group Strategic Results and Measures 2
Financial Performance 3
Chair and Chief Executive Officer’s report 6
Our C
ompany
Board of Directors
12
Executiv
e Team
14
The y
ear in review
16
PGG W
rightson's Hub Training
24
PGG W
rightson's Academy Programme 26
Merchiston Angus' long term genetic legacy 28
PGG Wrightson in the community 30
Environmental, Social and Governance Reporting 36
Financial information
Key Financial Disclosures 41
Dir
ectors’ Responsibility Statement
42
Additional F
inancial Disclosures including
Notes to the Financial Statements
51
Indep
endent Auditor’s Report
86
Go
vernance
Corporate Governance and Board Charter 90
Sta
tutory Disclosures
99
Gener
al Disclosures
104
Shar
eholder Information
105
Global Rep
orting Index
107
Corp
orate Directory
113
Calendar | Maramataka
Sustainability | Toitūtanga
As part of our commitment to sustainability, this annual report
is printed on environmentally responsible paper, produced
using Elemental Chlorine Free (ECF), Third Party certified pulp
from Responsible Sources, and manufactured under the strict
ISO14001 Environmental Management System.
ANNUAL REPORT 2022
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PGG WRIGHTSON LIMITED
Chair and Chief Executive
Officer’s report |
Pūrongo a te Heamana me te Tumuaki
PGG Wrightson Limited (“PGW”, “the Group”, or “the
Company”) delivered Operating Earnings before Interest,
Tax, Depreciation, and Amortisation (Operating EBITDA)
for the year ended 30 June 2022 of $67.2 million. Net
profit after tax (NPAT) was $24.3 million.
Fully imputed
dividends for the
year of 30 cents
per share
Total Shareholder
Return* of +38 per
cent (exceeding our
10 per cent target)
An Exceptional Year for PGW
2022 $M2021 $M2020 $M
Revenue952.7847.8788.0
Gross Profit248.5223.2204.0
Operating EBITDA67.256.042.2
Net Profit After Tax24.322.77.7
Net Cash Flow from Operating Activities23.757.731.5
Trading performance
Our exceptional financial year results are a
record for the business and is an outcome
the PGW team is very proud of, especially
after a challenging year at many levels. Like
all businesses we have had to navigate
managing COVID-19 protocols, dealing with
a high proportion of health related staffing
absences, responding to supply chain
challenges, and resourcing the business in
an extremely tight labour market.
Operating EBITDA of $67.2 million is an
outstanding result and an increase of $11.1
million or 20 per cent on last year’s strong
result.
NPAT in this financial year was $24.3 million
which was up $1.6 million or seven per cent
on last year.
Normalised EBIT (excluding non-operating
gains/(losses), impairment, and fair value
gains/(losses)) increased by 36 per cent
compared to FY21 to $39.1 million.
Importantly, these results were achieved
as a result of significantly higher revenue
of $952.7 million, up $105 million or 12 per
cent from FY21, with margins broadly in line
with last year.
Joo Hai Lee
Chair
Stephen Guerin
Chief Executive Officer
*
Total Shareholder Return is calculated based
on the movement in share price during the
financial year, plus the dividend (cents per
share) paid, divided by the opening share price.
Business highlights
It was pleasing to see PGW recognised
earlier this year as a finalist in the 2021
Deloitte Top 200 business awards
for outstanding change in business
performance among New Zealand’s
largest companies.
During the year we refreshed our
websites and client Online Account
Services Portal. The new websites
have a consistent contemporary
design and provide an improved
experience for users. Our updated
client Online Account Services Portal
provides enhanced performance, with
the capacity to add new features and
functionality over time.
We also initiated a company-wide
Business Improvement Programme
that will simplify PGW’s IT systems and
streamline our processes so we can
be more flexible, secure and efficient
when it comes to the fundamentals of
our operations and client service. This
programme of work is underway and
will span several years and we look
forward to the operational benefits and
efficiencies this will deliver over time.
ANNUAL REPORT 2022
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2021 Deloitte Top 200
‘Most Improved
Performance Award’
finalist
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PGG WRIGHTSON LIMITED
Chair and Chief Executive Officer’s report continued
PGG Wrightson Technical Field Representative,
David Wheeley, discusses Lucerne management
with David Nind, owner of Remarkables Farming
Limited, near Queenstown, Otago.
PGW Group Strategy
We launched our Group Strategy refresh
in 2021 which builds on our proud
heritage and strong fundamentals, while
focusing on the fast evolving future
landscape for agriculture and growth
opportunities. The strategic pillars
highlighted in the strategy provide clarity
and focus, and we have been embedding
these into our operations. The strategy
leverages our collective nationwide
reach and scale while also leveraging
our differentiated offering. In particular,
our client focused technical offering and
innovation focus to grow our market
share and further cement PGW’s position
as leaders in the field.
We have targeted three Results and
Measures areas as part of our Group
Strategy to track our performance in
relation to financial performance,
safety performance, and customer
experience. These measures cover three
important areas where we want to grow
and improve.
Financial Performance Measures: Our
internal financial performance measures
include two key indicators. Firstly, we
target growth through the cycles in
excess of Consumer Price Index (CPI).
This is measured by comparing our
normalised Earnings Before Interest
and Tax (EBIT ) growth against the CPI
and for FY22 we achieved a normalised
EBIT growth of 29 per cent above CPI.
We normalise EBIT by excluding non-
operating gains/(losses) and impairment
and fair value gains/(losses). This was an
extremely pleasing growth performance
against our strategic KPI.
A second financial measure that we
target is to achieve a Total Shareholder
Return (TSR) exceeding 10 per cent per
annum. TSR is calculated annually based
on the movement in our share price plus
the dividend(s) (cents per share) paid.
The TSR for FY22 was +38 per cent and
exceeded our KPI by +28 per cent.
Health & Safety Measure: The health,
safety, and wellbeing of our people is of
critical importance to PGW. To track our
safety performance, we measure our Total
Recordable Injury Frequency Rate (TRIFR)
performance so we can demonstrate
continuous improvement in our safety
outcomes. For FY22 PGW achieved a
TRIFR reduction of three per cent versus
our FY20 baseline. This reflects well on
our Group wide focus to continue to
improve on our safety performance
outcomes.
Customer Experience Measure: A key
feature of PGW’s success as a business
is the trust our clients place in our
company, people, and brand. Given
customer experience is so important to
our continued success as a business, a
key objective in our strategy is to target
incremental improvement in our PGW
Group Net Promoter Scores (NPS). NPS
is a commonly used measurement of
customer satisfaction and loyalty which
is based on a customer’s likelihood to
recommend a service or business. For
FY22 we achieved a positive five point
improvement in PGW Group’s NPS from
last year’s survey. This positive result is
consistent with our KPI to continually
strive for incremental improvement.
Market conditions
The profitable run for most New Zealand
agri sectors looks likely to continue
through the remainder of 2022 and into
the coming year. However, inflationary
pressures on input costs will likely
translate into reduced on-farm profits,
and exporters will still need to navigate
high shipping costs and challenging
logistics.
While input prices are increasing, rising
food prices are expected to be beneficial
overall for New Zealand’s agricultural
sector. With a predominance of pasture-
based production, New Zealand’s sheep,
beef, and dairy farmers are relatively
less exposed than international peers
to the disruption to grain markets from
geopolitical unrest. In the near term,
most agricultural industries are facing
similar pressures to other businesses,
including a tight labour market and
disruption to production from ongoing
challenges presented by the pandemic.
Labour shortages are constraining
production, including limiting fruit
harvesting and leading to delays in
meat
processing.
These macro-economic factors, coupled
with concerns relating to the raft of
regulatory and compliance change
impacting the sector, have resulted in
recent poll results that show record lows
in New Zealand farmer sentiment.
However, the reopening of New
Zealand’s borders should over time help
to ease the tight labour market. The
war in Ukraine has tightened the global
commodity market and although there
have been recent drops in the global
dairy auction, elevated dairy prices are
expected to remain in the medium term.
Negotiations for the United Kingdom
and EU Free Trade Agreements have
concluded and provide further clarity for
our exporters and some benefits to the
sector, such as kiwifruit growers.
ANNUAL REPORT 2022
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Refreshed
websites & client
online account services portal
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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Our people
At 30 June 2022 PGW employed 1,844
employees (including casual, fixed-term,
commission and permanent staff ).
Our continued focus on investing in
our people to provide them with the
tools and competence to succeed in
their roles, sees us introducing a revised
People & Safety Strategy in FY23 to best
support the refreshed Group Strategy.
Three key pillars of Leadership &
Expertise, Safe & Certain, and Recognition
are the anchors of this strategy and will
provide the foundation for the coming
three years.
PGW recognises the importance of
robust learning and development
initiatives, and we continue to ensure
our programmes are fit for advancing
our Group Strategy. With a wide-ranging
suite of Safety & Wellbeing, Sales,
Leadership, Management Skills, and
Technical Competence courses available
to our people both in-person and
through eLearning, we are encouraged
by the growth and depth of expertise in
our business.
Our people’s ‘can do’ attitude as we
responded to COVID-19’s constantly
evolving challenges was appreciated
as we best managed the changing
environment to ensure the ongoing
safety and wellbeing of our teams and
communities. The pandemic brought
disruption to our business in a myriad
of ways, and we are proud of our team
members’ commitment to our business,
clients, and communities under very
demanding circumstances.
Two key programmes which were
successfully re-established after the
COVID-19 lockdowns have been our
PGW Academy (see pages 26 to 27) and
Trainee programmes which focus on
developing our internal talent pipeline
and ‘TO LEAD’ which combines proven
leadership principles with what is critical
in a PGW
cont
ext.
Chair and Chief Executive Officer’s report continued
Safety and wellbeing
With a revised Safety and Wellbeing
roadmap and resourcing model PGW
is honouring our commitment to
continuous improvement in our vision
to embed a safety culture of ‘citizenship’,
whereby safety is a core part of everyone’s
role and is a shared responsibility.
A cornerstone of the revised roadmap is
ensuring we have a disciplined approach
to controlling our critical risks. We
partnered with HSE Global and spent time
with our people to best understand first-
hand the risk management challenges
they face in their daily work and to
identify opportunities for improvement.
The popular Zero Incident Process (ZIP)
training sessions continued across the
company. Our TRIFR reduced by three per
cent since the FY20 baseline.
Cashflow and debt
PGW recorded operating cash flows
during the year of $23.7 million which
benefited from our strong Operating
EBITDA performance.
PGW Group invested in working capital
during the year, including growing the
range of GO-STOCK receivables to $66.1
million at 30 June 2022, an increase of
$20.2 million or 44 per cent from 30 June
2021. In addition, inventories were $20.6
million higher than 30 June 2021 which
reflects a conscious decision to have
product available for clients together with
higher values of inventory.
Capital expenditure of $8.8 million was
$2.0 million higher than 30 June 2021
which was impacted by a slowing in
the implementation of projects as a
consequence of COVID-19 related
disruption.
Our net interest-bearing debt was $32.8
million as at 30 June 2022. PGW renewed
and extended its bank facilities for a three-
year term in late 2021.
Distributions
The Board is delighted with this year’s
financial results and declared a fully
imputed final dividend of 16 cents per
share. The dividend will be paid on 3
October 2022 to shareholders on PGW’s
share register as at 5pm on 9 September
2022. This will effectively bring the total
fully imputed dividends for the year up to
30 cents per share.
Environment and sustainability
Development of our Environment and
Sustainability strategy is a PGW Group
strategic priority and we have been
progressing our sustainability journey.
We are working towards determining
our environmental and sustainability
positioning, objectives and measures,
and embedding these in everything
we
do.
During the year the Environment,
Social, and Governance (ESG) Working
Group engaged with colleagues across
the business and with our suppliers to
determine PGW’s carbon emissions. We
now have an established process in
place to capture our emissions so we can
report on these in the future.
We undertook a Materiality Assessment
to determine which ESG factors are
important to our stakeholders and
material to our business objectives
and activities, as well as our societal
and environmental impact. Further
information about our ESG initiatives and
our Materiality Assessment are included
in the PGW in the Community section
(see pages 30 to 35) and the ESG section
(see pages 36 to 40) of this annual report.
Outlook
After a very wet winter, soil moisture
levels are currently ranging from
between normal to well above normal
across much of the country. On balance,
this should be positive for the sector
and PGW as we look towards the spring
season. PGW is well positioned to assist
our farmer and grower clients with their
cultivation needs as they gear up their
operations and we move towards the
warmer production months.
We remain cautiously optimistic about
the financial year ahead. Consumers in
export countries want high-quality and
safe food that our farmer and grower
clients produce.
New Zealand producers are renowned
for their technical innovations to improve
the quality of their produce and PGW is
well placed to support our farmer and
grower clients.
Overall, we consider that the
macroeconomic indicators for the New
Zealand agricultural sector are positive.
It is too soon in the year to provide
meaningful guidance, however we will
look to update expectations for FY23
at our Annual Shareholders’ Meeting in
October.
Governance changes
The PGW Board had one change to its
membership during the financial year.
PGW’s Chair, Rodger Finlay, retired from
the Board on 30 June 2022, having served
as a director and a member of the Audit
Committee for three years. The Board has
acknowledged and thanked Rodger for
his leadership during his tenure.
On 1 July 2022 Joo Hai Lee was
appointed Chair and Meng Foon
and Garry Moore joined the Board as
independent directors. Garry is also a
member of the Audit Committee.
Acknowledgements
We are extremely grateful for the
amazing dedication of our people in
serving our clients. Our continued
growth would not be possible without
their ongoing support and hard work,
in what has otherwise been another
challenging year.
To our clients, we thank you for your
loyalty and the trust that you continue to
place in us.
We want to acknowledge our suppliers
who have been exceptional at making
sure we have the products we need at
the right time to service our clients.
Finally, thank you to our shareholders
for your continued investment in PGW,
we remain focused on delivering our
strategy and creating value.
Joo Hai Lee
Chair
Stephen Guerin
Chief Executive Officer

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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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Board of Directors | Te Poari Tumuaki
Retired
Rodger Finlay
Rodger retired from the Board of PGG
Wrightson Limited effective 30 June 2022.
1. Joo Hai Lee
ACA (ICAEW ), CPA (Australia), FCCA (UK), CA (ISCA)
Chair
Joo Hai Lee was appointed Chair of PGG
Wrightson Limited on 1 July 2022 and
has been a Director since 31 October
2017. He is also a member of the
Audit Committee. He was appointed
as an Independent Director of Agria
Corporation in November 2008.
Mr Lee has more than 30 years’
experience in accounting and auditing.
He was a partner of an international
public accounting firm in Singapore until
his retirement from the firm in 2012. He
has serviced clients in the manufacturing,
hospitality, insurance, insurance broking,
and other service industries. His clients
included large multinational corporations
and listed entities. His professional
memberships include those of the
Institute of Chartered Accountants in
England and Wales, CPA (Australia), ACCA
(UK), Institute of Directors of both Hong
Kong and Singapore. Mr Lee also sits on
the Board of several listed companies in
Singapore and one in Hong Kong.
2. Sarah Brown
BA, LLB, CFInstD
Independent Director
Sarah Brown was appointed to the PGG
Wrightson Limited Board on 30 April
2019 as an independent director and is
Chair of the Audit Committee. Sarah is
from a rural background, having grown
up on a Southland sheep farm. She is
a former commercial lawyer who now
holds a number of independent director
roles, including SBS Bank.
3. Meng Foon
Independent Director
Meng Foon was appointed to the PGG
Wrightson Limited Board on 1 July
2022 as an independent director. He
has extensive business experience in
horticulture, agriculture, private wealth
creation, and property development.
Meng is the Race Relations
Commissioner for the Human Rights
Commission. He is currently Chair
of Te Pūkenga Equity Experts Group,
Chair of M Y Trust, Director of M Y Gold
Investments Limited, and a Trustee of The
Arts Foundation. He served as the Mayor
of Gisborne from 2001 to 2019 and has
held governance roles for several New
Zealand entities.
Meng is knowledgeable about best
practice organisational structures and
operating systems, and he believes
that data, science, and technology
will help ensure future sustainability
in environment and land business
profitability.
He has worked with Māori landowners
and believes that Māori land businesses
are important contributors to the
leadership of Aotearoa. He aha te mea
nui o te ao – he Tangata, inclusive people
and relationships are the success of all
things he does.
4. Garry Moore
B.Com, M.B.A, C.A.
Independent Director
Garry Moore was appointed to the PGG
Wrightson Limited Board on 1 July 2022
and is a member of the Audit Committee.
Garry was raised on farms in rural Mid-
Canterbury before attending Canterbury
University. He brings a wealth of finance
knowledge with 40 years of extensive
investment advisory experience together
with trustee and corporate governance
experience in rural services, viticulture,
pastoral farming, and education.
He is a registered Financial Service
Provider and member of the national
Forsyth Barr Investment Committee.
Garry is Chair of DairyCool Limited and
South Canterbury based farm owner
Burnett Valley Trust. He is a past Chair of
St Andrew’s College, Greystone Wines,
and the Canterbury Branch of the NZ
Institute of Chartered Accountants.
5. U Kean Seng
LLB (Hons), B.Ec
Director
U Kean Seng was appointed to the PGG
Wrightson Limited Board on 4 December
2012. He is Head of Corporate and Legal
Affairs for Agria Corporation, a role he
has held since December 2008. U Kean
Seng previously practiced as a partner
at Singaporean law firm, Shooklin & Bok
LLP, focused on East Asia, and he led a
corporate finance team in Allen & Overy
Shooklin & Bok, JLV, an international law
venture partnership with London based
Allen & Overy LLP.
U Kean Seng previously sat as an
Independent and Non-Executive Director
of several public listed corporations. He
received a Bachelor of Laws (Honours)
degree from Monash University
Australia. He is a Barrister and Solicitor,
Supreme Court of Victoria, Australia;
Advocate and Solicitor, Supreme Court
of Singapore and Solicitor of England
and Wales. In addition to his extensive
legal knowledge, U Kean Seng is also a
qualified economist, having completed
his degree majoring in Economics and
Accounting, B.Ec at Monash University,
Australia.
6. Dr Charlotte Severne
MSc, PhD (Geology), ONZM
Independent Director
Dr Charlotte Severne (Tūwharetoa,
Tūhoe) was a commercial scientist and
executive for 20 years. She was also a
Deputy Vice Chancellor at both Lincoln
and Massey Universities. In 2017 she
received an ONZM for her contribution
to Science and Māori. In 2018 she was
appointed, The Māori Trustee, with
various governance and agency roles for
whenua Māori across New Zealand.
1.
2.
3.
4.
5.
6.

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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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Executive Team | Ngā Kaihautū
1. Stephen Guerin
Chief Executive Officer
Stephen was appointed Chief Executive
Officer (CEO) of PGG Wrightson Limited
in June 2019. Stephen is a director of
several Group subsidiaries and a Director
of the PGG Wrightson Employee Benefits
Plan Trustee Limited. He holds a Bachelor
of Business Studies (Accounting) from
Massey University and is a member
of the Institute of Directors and
Chartered Accountants Australia & New
Zealand. Stephen is also a director on a
community charity board.
Prior to this appointment as CEO,
Stephen was responsible for all aspects of
the Retail & Water group business which
includes the Rural Supplies, Fruitfed
Supplies, Agritrade, and Water businesses.
He has worked for PGG Wrightson
Limited and its predecessor companies
since 1988.
2. Nick Berry
General Manager Retail & Water
Nick was appointed General Manager
Retail & Water in August 2019. Nick
joined PGG Wrightson Limited as New
Business Growth Manager for Agritrade
in 2014 and through his five-year period
with Agritrade, he grew the business
substantially.
Before joining PGG Wrightson Limited,
Nick was General Manager at RD1 for
eight years and prior to that he was
National Operations Manager. Nick has
an extensive track record of experience
at general management level. Nick’s
strengths are leadership, business
management, along with strong
sales and service focus, backed up
with a strong affinity for retail and the
agribusiness sector.
3. Julian Daly
General Manager Corporate Affairs
Julian is responsible for the Group
Strategy, Marketing, Legal, Corporate
Communications, Business Services,
and Investor Relations functions for PGG
Wrightson Limited. He is also Company
Secretary and previously held a number
of responsibilities including, General
Manager of PGG Wrightson Real Estate
Limited and Internal Audit. Julian has
broad operational involvement across
the business and is Chair of the Credit
Committee and Risk Committee, director
of several Group subsidiaries and a
Director of the PGG Wrightson Employee
Benefits Plan Trustee Limited.
He is a former General Counsel of DB
Breweries Limited and has previously
worked for law firms in the Middle East
and New Zealand. Outside of his PGG
Wrightson Limited role, Julian also has
a number of governance and voluntary
positions, including as a Director of Trade
Aid New Zealand, Chair of Selwyn House
School and as a Citizens Advice Bureau
community lawyer.
4. Grant Edwards
General Manager Wool
Grant was appointed as General Manager
Wool in October 2017. He is responsible
for all aspects of the Wool business
including procurement, logistics, sales,
and wool export. Grant holds a Bachelor
in Agriculture Science from Lincoln
University majoring in Wool Science.
He began his career in Livestock with
Reid Farmers Limited in the mid-1980s,
and then joined their Wool Business. He
held the position of Wool Manager at
Reid Farmers and Pyne Gould Guinness
Limited. More recently Grant held roles
with PGG Wrightson Limited as General
Manager Regions and Otago Regional
Manager. Grant has spent over 20 years
directly in the wool industry and states,
“once you have a passion for wool it
never leaves.”
1.
2.
5.
7.
3.
4.
6.
8.
5. Peter Moore
General Manager Livestock Ventures
& Partnerships
Peter took up the role of General
Manager Livestock Ventures &
Partnerships in October 2020, having
previously held the position of General
Manager Livestock for PGG Wrightson
Limited since August 2014. In this role
Peter is focused on adding value to
the Livestock business through new
initiatives and partnerships, including the
stewardship of bidr
®
.
Before joining PGG Wrightson Limited,
Peter headed up Fonterra’s international
farming ventures business from 2008
until 2013, responsible for developing
and implementing the strategy to
selectively invest in milk pools outside
of New Zealand and Australia. His major
focus was the development of the scale
farms in China, plus dairy development in
Latin America and Asia. Prior to this, Peter
worked in Fonterra’s risk management
team and before joining Fonterra in 2005
he managed AgResearch farms across
New Zealand. Peter grew up on the
family hill country sheep and beef farm
in the Waikato and spent a number of
years managing this in partnership with
his family.
6. Peter Newbold
General Manager Livestock & Real Estate
Peter is General Manager Livestock
& Real Estate. Peter has led the PGG
Wrightson Limited Real Estate business
since September 2013, and he took
responsibility for PGG Wrightson Limited
Livestock in October 2020. Peter was
previously General Manager of New
Zealand Sotheby’s International Realty.
Peter was employed by Wrightson
Limited from 1995-2005, during
which time he held a range of roles
including Marketing Manager and
Business Development Manager. Prior
to this, he had an extensive career
in retail ownership, management,
and
franchising
.
7. Peter Scott
Chief Financial Officer
Peter was appointed as PGG Wrightson
Limited’s Chief Financial Officer in
March 2015 and leads the finance and
technology functions. Peter started
his career at Fletcher Challenge and
has broad multinational experience,
spending five years in Scandinavia where
he was the Vice President of Accounting
and Tax for Norske Skog, a large global
newsprint and magazine paper producer.
He relocated to Australia in 2005 and
was appointed to the lead finance
role for Norske Skog’s Australasian
region. In 2008, Peter joined Gloucester
Coal Limited, an Australian Securities
Exchange listed mining company as the
Chief Financial Officer. In 2010 he joined
the majority shareholder Noble Group, a
leader in managing the supply chain of
agriculture, energy, metals, and mining
resources, headquartered in Hong Kong
and listed in Singapore. He was the
Chief Financial Officer for Noble Group in
Australia.
8. Rachel Shearer
General Manager People & Safety
Rachel joined PGG Wrightson Limited
in 2016 and is responsible for our
Group People & Safety strategy and
roadmap, with the key pillars being
Leadership & Expertise, Safe & Certain,
and Recognition. She leads the
functional teams of Safety, Wellbeing &
Environment, Human Resources, Payroll,
Remuneration, Learning & Development,
HR Information Systems and Shared
Services.
Rachel was previously GM Human
Resources at Solid Energy New Zealand
Limited, after gaining experience as a
human resource consultant both abroad
and in her hometown of Christchurch,
specialising in organisational
design, workforce planning,
change management and business
transformation.

PGG Wrightson Real Estate Salesperson, Roger
Nicolson, with Kate and Chris Pont and family
discussing their leaving East Otago after the
successful sales of the Law family farm blocks,
owned by Kate’s parents.

PGW has two operating groups: Retail & Water and Agency
E rua ngā rōpū whakahaere o PGW: Hokohoko me te Wai me te Umanga
The year in review
Te arotake i te tau
ANNUAL REPORT 2022
|
1716
|
PGG WRIGHTSON LIMITED

Our R&D team
conducted 59
new product trials

in Bay of Plenty, Tasman,
Hawke’s Bay, Pukekohe
and Canterbury.
ANNUAL REPORT 2022
|
19
Our Retail & Water businesses
performed extremely well and achieved
an outstanding result with new highs.
Our core focus remains to add value to
our clients’ businesses and much of this
is through the superior technical ability
of our people.
During the year we continued to
invest in training for our people
from both a technical and sales
perspective. Our commitment to the
personal development and upskilling
of staff supports a very stable and
knowledgeable rep force. As clients see
the value in the expertise of our people
we continue to see new clients coming
into stores and asking reps to come on-
farm and on-orchard. This is reflected in
the incremental market share gains we
are seeing.
To achieve these results our teams have
moved increased product volumes
through our store network.
Our investment in our logistics model
has assisted us in delivering product
on-farm and on-orchard in a timely and
efficient manner which ensures that
our rep force has more time to give our
clients valuable advice.
COVID-19 has caused increased
uncertainty and stress, especially for
the frontline teams. As COVID-19
spread through the regions it became a
challenge to keep our stores open with
reduced staffing levels. We developed
a plan to deal with temporary closures
and staff moved between stores to
patch gaps and to keep the doors
open for service. Our teams have been
incredibly resilient with the key focus
on servicing our clients, in at times
an extremely challenging and rapidly
changing environment.
Supply chain disruption has continued
and has impacted the timelines in
sourcing products. Being able to get
the right products to our clients at
the right time has highlighted the
importance of the strong relationships
we have with our suppliers. To help
mitigate supply chain risks, we have
also sourced product earlier and
carried more inventory than we have
historically.
Our eCommerce channel tripled its
sales revenue and number of orders in
its second year of operation. A positive
flow-on impact of presenting and
raising awareness of our product range
online has also contributed to a boost
in in-store cash sales and an increase
in the number of product and project
enquiries online.
Work has commenced on a new build
retail store in Richmond and planning is
underway for new Timaru and Ohakune
Retail stores.
Rural Supplies | Ngā Whakaratonga
Taiwhenua
It was an outstanding year for our
Rural Supplies business. Through our
client focused offering, we have seen
growth in a relatively tough market.
Rural Supplies has sustained the
momentum of recent years and has
investigated opportunities to expand
into adjacencies and categories where
there is unmet client demand.
Our reps continue to increase their
usage of technical platforms which
streamline their day-to-day activities
and make their interactions with clients
more efficient.
The Retail & Water business incorporates Rural Supplies, Fruitfed Supplies,
Agritrade, and Water. Retail & Water’s Operating EBITDA was an impressive
$52.5 million, up $15.0 million on the prior year.
Retail & Water group | Rōpū Hokohoko me te Wai
RevenueOperating EBITDA
$
761.3M
$
52.5M
▲ 15.6%
▲ 40.0%
PGG Wrightson Technical Horticultural
Representative for Fruitfed Supplies,
Jonny La Trobe, discusses the Fruitfed
Supplies led HDPE bird net recycling
initiative with Neil Smith, Manager
of Saint Clair Winery, near Hastings,
Hawke’s Bay.
18
|
PGG WRIGHTSON LIMITED

Nearly a
third of all treatments
in our R&D trials this year
were biologicals which are
more environmentally friendly
alternatives.
Agritrade released
into the Australian
market our proprietary
product,
‘The Zinc Capsule’ an animal
health facial eczema treatment.
ANNUAL REPORT 2022
|
21
Investment in our people continues
through training, with a focus on sales
to ensure we are supporting our clients
with the right advice and the right
products for the job, and by providing a
welcoming environment in our stores.
Our advertising promoting Rural Supplies
and our people showcases our expertise
in the field and that we have more stores
and reps than others servicing the sector.
Our stores and people are part of the
local communities in which they operate
and as a rural business, we are proud of
our investment in the regions.
Fruitfed Supplies | Ngā Whakaratonga
ā-Huawhenua
Fruitfed Supplies had another excellent
year, with new Operating EBITDA and
revenue achievements. We maintain
a high market share across most
horticultural sector categories and
continue to build relationships as a
key supplier of winery inputs into the
viticulture industry.
We continue to see significant
investment by clients in large
horticultural developments. Fruitfed
Supplies has been well placed to benefit
from these developments in supporting
the supply of a significant amount of
capital development. Many of the
developments that we have assisted with
over the past few years are now coming
into production and Fruitfed Supplies is
generally seen as the logical partner for
clients as their investments transition
from development projects into
production. Our corporate client base
is expanding, and we have a number of
long-term supplier agreements in place.
Land use change continues with
a number of growers, including
the corporate market, diversifying
their portfolios and investing in the
horticultural sector. The vegetable sector
is a growth opportunity for Fruitfed
Supplies and we have increased our
market share in this area through a
number of targeted initiatives.
A full marketing plan including
campaigns promoting the brand and
services offered, and a refreshed Fruitfed
Supplies website, were delivered during
the year.
Our Technical Team conducted a number
of research and development (R&D)
trials across the industry looking for new
products and chemistry that will help
support our clients. A focused sales
training programme was rolled out to
increase the knowledge of our frontline
staff.
Agritrade | Tauhokohoko Ahuwhenua
Agritrade, our wholesale business
division, manufactures, sells, and
distributes products to improve farmer
and grower production. Agritrade has
continued to perform well over the year.
This was despite COVID-19 and supply
chain challenges causing volatility in
sourcing products and price increases
that have been borne by the total supply
chain.
During the year 12 products that are
new to the New Zealand market were
commercialised, including Cervidae Triple
Deer Drench which is the only registered
deer product of its kind on the market in
New Zealand, and a zinc animal health
treatment capsule for facial eczema in
dairy cattle was launched into Australia.
International shipping delays
combined with domestic logistical
issues caused challenges. The fragility
of the international freight system
and increased costs highlighted the
importance of the strong relationships
the team has with our partners which
assisted in ensuring the flow of key
products and inputs to our clients.
Water | Wai
Implementation of our Water Strategy
has contributed to increased business
with new and repeat clients. Technology
initiatives included improving our client
asset management system and online
tracking of builds to increase efficiencies
in project delivery. Product shortages
and shipping disruptions caused delays
in project delivery and are expected to
hinder project completion in the near
term.
Our technicians completed certified
training with Valley Irrigation resulting
in the team being the only Valley
distributor in New Zealand who can offer
an eight-year extended warranty. The
team was also honoured with the Valley
365 Asia-Pacific largest subscription
provider
a
ward.
PGG Wrightson Sales & Design
Manager - Water, Doug Mercer,
discusses the benefits of variable
rate irrigation with Joe Stewart,
owner of Yarrabee Park Limited,
near Charing Cross, Canterbury.
20
|
PGG WRIGHTSON LIMITED

ANNUAL REPORT 2022
|
23
Agency group | Rōpū umanga
RevenueOperating EBITDA
$
189.4M
$
21.8M
▲ 1.5%
▼ 13.2%
PGG Wrightson Procurement Coordinator
– Wool, Rosie Moore, and Wool Sales
Administrator, Annabel Busby, interact
with the public to promote the many uses
for wool at the 2021 National Agricultural
Fieldays, near Hamilton, Waikato.
Livestock | Ngā Kararehe
Our Livestock business performed well in
a challenging climate with higher revenue
and Operating EBITDA achieved. The
strong prices achieved for dairy livestock
were supported by an increase in tallies
and strong links to bidr
®
’s hybrid sales.
The South Island recorded its strongest
trading performance in all classes in a
decade. Solid values were reached in all
categories, especially cattle and sheep,
which compensated for a reduction in
tallies.
During the year GO-STOCK DAIRY
was launched. GO-STOCK DAIRY is an
extension of our GO-STOCK grazing
contracts which are continuing to grow
with increased uptake with transacted
stock volumes at their highest levels.
PGW’s online trading platform, bidr
®
,
continued to grow its database of buyers.
This was bolstered by the successful
launch of the livestreaming of cattle
sales at a number of saleyards, as well as
continued demand for on-farm hybrid
auction coverage.
Although the velvet business experienced
shipping delays and port closures in
China, the outlook is positive with further
sales growth predicted in Asian markets.
During the year PGW’s velvet team
exported the first ever dry (processed)
shipment of velvet to China.
The Deer Team had a successful year with
both live sale numbers and prices on the
rise. Venison prices are now recovering
back to near the five-year average and are
forecast to lift as logistical challenges on
the chilled markets in the United States
and European Union reduce.
Our Agency group incorporates the Livestock, Wool and Real Estate businesses.
Operating EBITDA was $21.8 million, down $3.3 million on the prior year’s strong result.
Wool | Wūru
Strong wool market prices remain
challenging and have been
accentuated by pandemic related
disruption negatively impacting on
demand. Fine wool prices remain solid,
with merino being supported by high
value grower contracts and healthy
auction values.
Our wool contract business grew,
and our grower client base benefited
from fine wools, organic wools, and
crossbred lambswool contracts
delivering good premiums.
We saw a pleasing increase in wool
volumes exported compared to the
last financial year. The team did well
managing the wool flow through our
four wool stores and onto our overseas
clients
in what has been an ex
tremely
difficult season.
We are pleased with the continuing
growth of our PGW Wool Integrity
Programme which provides
quality standard assurances to the
international
marketplace around
consumer expectations.
To demonstrate our belief in the future
of this natural, sustainable, and bio-
degradable fibre we made significant
investments in machinery for our
logistical operation and we employed
two trainees across the business.
Real Estate | Hokohoko Whenua
The Real Estate business has enjoyed
another successful year. Whilst returns
in the residential and lifestyle channels
have been challenging, sale volumes of
rural properties have been strong.
The growth of the rural property
segment benefited from our increased
market share and a number of property
sales exceeding $30 million, with a
kiwifruit property achieving a record over
$2 million per canopy hectare.
We anticipate continued solid
performance in the rural property
market segment with favourable spring
appraisals and listings due to continued
horticulture growth and carbon/forestry
interest in sheep and beef properties.
Sales in residential and lifestyle segments
should maintain their momentum, as
tougher conditions within the building
sector may see those who were going to
build redirect interest to existing builds.
The business expanded during the year
through the acquisition of Real Estate
New Zealand in Ashburton and our Te
Awamutu real estate office moved into
new premises.
Highest volume of
rural sales in a decade,
16% increase in rural sales
for the year versus FY21.
22
|
PGG WRIGHTSON LIMITED

The Technical Team is made up of the
R&D Team, who trial new products for the
New Zealand market, and two Extension
Teams. The Rural Supplies Extension
Team covers animal health and veterinary
science, agronomy, and soil and
environmental science, while the Fruitfed
Supplies Extension Team is responsible
for everything from pipfruit, viticulture,
subtropical, vegetables, to plant nutrition.
One of the Extension Teams’
responsibilities is training and upskilling
our reps and sales staff to increase their
technical knowledge and understanding.
This leads to our reps and sales teams
having deeper conversations, giving
better service to our clients and adding
more value to their businesses. A primary
tool the Extension Teams use is our
internal face-to-face practical training
sessions. These small group trainings are
regionally and seasonally focused, and
are designed to help solve current issues
on-farm and on-orchard.
As regulation and environmental
awareness increases, so too does the
need for technical and smart solutions
for our farmer and grower clients. Within
Rural Supplies the Extension Team runs
four Hub Trainings a year, with two in
spring and two in autumn.
New Zealand agriculture has seen
changing legislation create new
parameters for farmers to operate in and
to reduce their environmental footprint
on-farm. A key aspect of this legislation
relates to Intensive Winter Grazing (IWG)
of forage crops. Farmers are required
to identify and seclude Critical Source
Areas (CSAs) within their IWG operations.
A CSA is an overland flow path which
can convey contaminants to waterways.
CSAs must be fenced off from stock
and farmers must minimise the loss of
sediment and nutrients.
Regional Councils across New Zealand
are responsible for implementing what
is and is not a CSA. However, there is an
opportunity for our reps and sales teams
to positively assist farmers and be a
conduit to direct farmers on where to go
for advice and confirmation.
This autumn the Technical Team Rural
Supplies soil Technical Specialist Dr
Jay Howes and soil Technical Specialist
Angela Cottle, in conjunction with
the Retail Environment Management
Strategy Team, developed a Hub Training
programme to teach our reps and sales
teams how to identify a CSA and what
mitigation strategies are available to
minimise the environmental footprint.
The day was split into two sessions, the
morning included a classroom session
covering legislation, concepts of CSA,
and how to identify them on paper, while
the afternoon session was a practical on-
farm experience.
Angela is passionate about upskilling
her colleagues and says, “It’s amazing to
see the Hub Training participants grasp
the intentions of the legislation and
practically translate these into tangible
benefits which add value to our clients’
businesses.”
At the Canterbury Hub the team visited
Chris and Rachel Benny on their 300
hectare sheep and beef and cropping
farm, Flockton, in Sheffield. Using
the skills they learnt that morning,
participants were required to identify the
CSA in paddocks which are going to be
planted into an IWG crop next year and
map out the CSA. Participants then put
themselves in the farmer’s shoes and
created an IWG grazing plan to minimise
the environmental footprint of the IWG.
While PGW reps do not do CSA
identification for farmers, a result of
this training is our reps are now more
knowledgeable about CSA requirements
and can help ensure the sustainability of
IWG systems. Reps can provide referrals
to consultants where necessary and help
direct farmers to the right contacts at the
Regional Councils.
Chris appreciates the technical support
he receives from his PGW Technical Field
Representative, “I enjoyed hosting PGW’s
Hub Training on my farm, and it was
great to see how passionate the PGW
team is about upskilling which ultimately
benefits me and my business,” says Chris.
Technical Team Manager, Milton Munro,
explains, “This type of practical training
really works. We have been running
these trainings for ten years and we have
seen the value come through. We have
watched our salespeople really put their
technical knowledge to good work,
increasing clients’ production in a more
sustainable way.”
ANNUAL REPORT 2022
|
25
Our People | Tō Tātou Iwi
PGW Wrightson Technical Specialist – Soil Science,
Angela Cottle, discusses CSAs with reps during the
practical Hub Training session, on Flockton Farm, near
Sheffield, Canterbury.
Working with
PGG Wrightson
Angela Cottle joined PGG Wrightson in
2020 and is a Technical Specialist in the
Rural Supplies Technical Team. Angela
relishes helping others in the agri
sector to learn, grow, and go on and
do great things, while challenging the
status quo. “I want my primary sector
work colleagues to develop and grow
so that we can work together to create
opportunities for our farming clients,”
says Angela.
PGW’s eight strategic priorities include ‘Our Differentiated
Offering’, which is a competitive advantage for the company.

One aspect of PGW’s differentiated offering is the leveraging of its
Technical Team, who are dedicated to growing technical knowledge
and ability across the company, our clients, and the industry.
PGG Wrightson’s
Hub Training
Our two Extension Teams
run 40 Rural Supplies Hub Training
sessions and 20 Fruitfed Supplies
Core Training sessions a year.
24
|
PGG WRIGHTSON LIMITED

PGG Wrightson Technical Expert – Animal Production, Andrew Dowling, and the 2022 Academy
participants, listen to Jamie Pickens, Stock Manager for The Wandle, explain the boundaries of
the property and discuss the current stock on-farm, near Middlemarch, Central Otago.
PGG Wrightson’s
Academy Programme
ANNUAL REPORT 2022
|
27
Our People | Tō Tātou Iwi
The PGW Academy, established in 2006,
focuses on developing talent within the
company. Since its inception more than 270
employees have completed the programme
and have proceeded to enrich PGW, our
clients’ businesses, and the wider agricultural
and horticultural industries.
Each year approximately 20 PGW employees
from around the country are selected to
join the 12-month Academy programme,
with the number of applicants far exceeding
the places available. Being selected for the
Academy is a great career opportunity and a
matter of pride for both the participants and
their managers.
The Academy is one of our commitments
to career development and extension for
employees across the whole PGW business.
The PGW Academy is one of our many
‘Invest in our People’ strategic priority
initiatives.
A development programme that started
16 years ago to broaden employee
knowledge across PGW’s Business
Units is bringing both new people and
new innovations to agriculture and
horticulture.
PGW’s CEO, Stephen Guerin says, “The
Academy has always been something
that I have been very proud of, and I
look forward to watching each cohort
develop themselves and their careers.
This is a fantastic opportunity for
participants to broaden their knowledge
of the primary industry and get them
out of their comfort zone. It has sparked
graduates to specialise in new areas,
move to new roles, and gain promotions
both at PGW and in the wider industry."
“Participants from our Retail, Livestock,
and Wool Trainee Programmes also take
part in the Academy, which is a great
example of our One PGW attitude. As
a responsible employer we invest in
our people, as we know we have a
role in growing future leaders in the
industry, and we are impressed by their
achievements,” says Stephen.
The Academy programme is a
partnership between PGW and the
Primary Industry Training Organisation.
Over the course of the year participants
complete a Certificate in Rural Servicing
(NZQA Level 4). The major component
of this certificate is the PGW dissertation.
The dissertation requires the participants
to select a client, work with them to
identify a production issue, develop an
innovative solution for that issue, then
model the effect the solution will have
on the business over the next five years.
At the end of the year participants are
required to present their dissertation
back to their peers and panel of expert
judges. The programme culminates with
graduation and an awards ceremony.
Dissertations from participants in recent
years include modelling the impact
of bidr
®
in helping farmers save costs
in selling livestock during COVID-19
lockdowns, frost recovery programmes,
and feed and pasture analysis
comparisons.
PGW Technical Team Manager and
Academy Convener, Milton Munro,
sees agriculture becoming increasingly
complex and complicated with further
regulatory changes coming for the
primary industries. Milton believes, “The
trusted advisor and rep of the future is
going to need to be a problem solver
who has the skills to be able to tap
into innovative solutions. The Academy
course and qualification is designed to
turn participants into a primary industry
trouble shooter. It teaches them the
skills required to identify production
issues, develop innovative solutions, and
to model, compare, and contrast other
solutions to provide the best possible
benefit to the farmer or grower.”
“I’ve been privileged to be a part of the
Academy for the past ten years and I
still continue to be amazed by it. The
positive change and growth in the
participants over the course of the year is
inspiring. I
see them grow in confidence
and watch them develop deep networks
across the business and build lasting
friendships, there’s even been an
Academy marriage!”
Early in the year the Academy cohort
learns about the dry stock side of our
business at one of the Lone Star Farms
Group’s farming operations in Otago.
This year the Academy was hosted by
The
Wandle
, a high producing finishing
farm located near Middlemarch. The
Wandle is renowned for its omega-3
lamb and its high marbled beef.
Participants share in a mixture of
practical training and theory across the
farm over the course of two days.
The other Academy workshops cover a
diverse range of topics, from horticulture
to dairy and from livestock to farm and
orchard management. These workshops
are run by our Technical Team with
engagement from some of PGW’s
strategic partners such as Ballance
Agri-Nutrients, Livestock Improvement
Corporation, and Datamars.
26
|
PGG WRIGHTSON LIMITED

Merchiston Angus'
long term genetic legacy
28
|
PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
|
29
PGG Wrightson General Manager - Livestock
& Real Estate, Peter Newbold comments on
the high quality herd with National Genetics
Manager, Callum Stewart and Richard Rowe,
co-owner of Merchiston Estate, northeast of
Marton, Manawatū.
Our Clients | Tō Tātou Kiritaki
Merchiston Estate, northeast of Marton in
Manawatū, was settled in the 1880s and has
been in the Rowe family for four generations.
Merchiston Angus was established by the late
Lloyd Rowe in 1955 on 1,000 hectares of prime flat
land, previously predominantly sheep and beef.
After Lloyd’s sons, Richard and Lloyd,
took over in 1981 they expanded the
stud stock herd and sold the commercial
herd. Complementing the stud, the
Rowes finish cattle, typically buying
clients’ progeny as weaners, therefore
enabling them to measure their own
genetics. They also farm approximately
5,000 commercial ewes and grow
commercial grain and crops.
Merchiston Angus’ long term genetic
legacy is based on astute selection
and first-class stockmanship. Like
Merchiston’s rich heritage, the
relationship with PGW has grown
through several generations. “We build
relationships with the companies we
work with and PGW is a big part of our
business,” says Richard.
Much of the relationship focuses on the
Genetics team that operates within PGW
Livestock. Our genetic specialists work
alongside our clients to help develop
breeding programmes, source and
sell quality livestock, and build robust
businesses.
PGW National Genetics Manager, Callum
Stewart has worked with the Rowes for
15 years. “I enjoy advising Richard and
Lloyd. It’s a true partnership, creating
growth and adding value. Using the
right tools and genetics are major
influences on breeding programmes and
commercial operations,” says Callum.
“Callum has been an integral part of our
genetics stud stock business, starting
when he auctioneered for us, before he
became our stud stock manager,” says
Richard.
Callum and Richard meet regularly,
especially leading up to a sale. In March
2022 the stud’s major foundation female
sale offered 170 mixed age cattle,
comprising the entire Merchiston-based
cow herd. Uniquely, it gave breeders the
opportunity to purchase females and
cow families going back nearly 70 years.
A hybrid sale, it attracted more than
100 people on-site, plus more than 180
from Kaitaia to Gore attending online via
bidr
®
.
PGW’s CEO, Stephen Guerin, attended
the sale, alongside PGW’s General
Manager Real Estate and Livestock, Peter
Newbold. “This sale is a milestone for
the family. I am delighted PGW achieved
such a positive result, particularly with
20 per cent of sales via bidr
®
,” said
Stephen. Peter added, “One of the nicest
outcomes is that stock has gone to all
parts of the country.”
PGW Livestock Rep, Paul Peterson, has
served the Rowes for 30 years. “The
Rowes have been very good clients and
we understand what’s required of each
other to make the business relationship
successful. They trust me to do my
best on their behalf when marketing
their stock and I have confidence in the
quality of the article being sold. Over
the years I have developed close ties
with the family, including now dealing
with the next generation,” says Paul.
Richard adds, “You need to know each
other’s business inside out to work for
each other. Paul has become more than
an agent, he’s a friend of the family.”
While Technical Field Representative
(TFR), Kody Boyce, has been with PGW
less than a year, the previous TFR, Peter
Death, was with PGW for 49 years when
he stepped down last year to become
a Customer Service Representative in
the Marton store. Kody is delighted
to take over such a prestigous client,
“This is a great business and a beautiful
farm. I really enjoy working with Richard
and Lloyd and look forward to further
developing a trusted relationship with
the family.”
PGG Wrightson National Genetics Manager, Callum
Stewart, surveys the herd before the foundation
sale with Richard Rowe, co-owner of Merchiston
Estate, northeast of Marton, Manawatū.
Working with
PGG Wrightson
National Genetics Manager,
Callum Stewart, joined PGW in
2006. Based in Manawatū, he leads
the nationwide team of dedicated
genetics specialists.
Callum enjoys developing
relationships, “When I’m invited around
the coffee table, there’s trust and an
open forum within those walls. I get to
know the whole business, understand
the moving parts, and work out where I
can add value. I feel privileged getting
to know a client’s family because
genetics is a family business.”
A hybrid sale, offering
170 mixed age cattle
attracted more than 100 people on-site,
plus more than 180 from Kaitaia to Gore
attending online via bidr
®
.
BUY & SELL

ANNUAL REPORT 2022
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31
Karen Chapman on the dairy farm
where she works in Otaua, near
Waiuku, Southern Auckland. IHC
supports and provides residential
care for Karen and a wonderful
IHC volunteer helps Karen pursue
her lifelong passion for milking.
Photo credit: IHC
PGG Wrightson i roto i te hapori
PGG Wrightson
in the community
One of New Zealand’s most enduring
charitable relationships – 40 years,
$40 million and still going strong.
This year we celebrate 40 years of
being the principal sponsor of the
IHC Calf & Rural Scheme, which has
raised some $40 million in that time.
The scheme began in 1982 by farmers
Norm Cashmore and Mick Murphy, with
PGW supporting it since the beginning,
working alongside the IHC to encourage
farmers to donate or pledge stock for
auction, with proceeds going to support
people living with intellectual disabilities
and their families.
PGG Wrightson Livestock General
Manager, Peter Newbold says the
company greatly values its relationship
with the IHC Calf & Rural Scheme. “We
are proud and humble of our long
association with this fantastic cause. IHC
and PGW working together is one of
New Zealand’s most enduring charitable
relationships.”
“From its origins, the scheme has always
been about rural people doing their
best to support a community need. One
big advantage is that farmers who give
to the scheme can see the impact of
their donations put to good use in their
local area. PGW has been there since the
beginning, helping people by making
the most of the many connections our
brand has to the rural sector throughout
the country,” he says.
IHC’s National Fundraising Manager,
Greg Millar says the charity’s long
association with PGW has helped
the scheme immensely. “The IHC is
incredibly grateful for the sponsorship
support and expert guidance PGW has
given this vital rural fundraiser from the
very beginning, 40 years ago. In the end
it’s the very generous farmers who year
after year, through good times and bad,
show how much they care about some
of the most vulnerable people in their
rural communities. You are IHC rural
legends,” says Greg.
PGW Livestock works with transport
companies to coordinate pickups and
to sort the animals into saleable lots
for regional auctions throughout the
country, with the company’s auctioneers
urging prospective buyers to support
the bidding at each auction. Virtual
donations are also part of the scheme.
To celebrate this milestone PGW went
'Pink for a Week' in April. Staff were
encouraged to join in and wear pink,
hold fundraising pink morning teas, and
amend their email signatures by adding
the IHC anniversary logo to help raise
awareness.
Proceeds raised support rural families
with children with intellectual disabilities
to get the support and information they
need. Nationwide IHC has 32 community
associations of local people helping local
people, supporting local initiatives.
PGW's Richmond team goes pink for IHC.
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PGG WRIGHTSON LIMITED
IHC Calf & Rural Scheme
and principal sponsor PGG Wrightson
mark big anniversary

ANNUAL REPORT 2022
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33
Tataiwhetu Trust Trustee, Ngatai
Hurkmans, and PGG Wrightson Iwi
Relationship Manager, Ron Walters,
at the Tataiwhetu Trust field day.
Photo credit: alphapix
Co-branded Land
Search and Rescue
and PGW vehicle
Photo credit: Land Search and Rescue.
PGG Wrightson Regional Sales Manager, Aaron
Gravatt, and Ballance Regional Sales Manager,
Calvin Ball, present a cheque for the funds raised
through the Cash for Communities programme
to the Northland Rescue Helicopter General
Manager Service Support, Vanessa Furze.
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PGG WRIGHTSON LIMITED
Supporting Excellence in Māori Farming
For over 170 years PGW has been at the heart of rural communities. PGW builds
trusted relationships with our clients through proudly supporting local events,
fundraising activities, critical services, and wellbeing organisations. We also sponsor
agricultural and horticultural industry bodies to grow talent, collaborate, and
introduce new technical innovations.
Our people live locally and work alongside our clients, making a positive contribution
to their rural communities by being personally involved through volunteering for the
local fire brigade, helping out at the dog trials and coaching sports teams.
PGG Wrightson in the Community continued
It is a privilege to be a sponsor of The Ahuwhenua Trophy, Te Puni
Kōkiri Excellence in Māori Farming and Horticulture Award. This award
acknowledges and celebrates business excellence in New Zealand's pastoral
and horticultural sectors and the trophy alternates between sheep and beef,
dairy, and horticulture each year.
The winner of this year’s Ahuwhenua Trophy for the top Māori dairy farm is
Tataiwhetu Trust, located in the Ruatoki Valley south of Whakatane. Tataiwhetu
Trust is an organic dairy farm which run 432 KiwiCross cows and carry 188
replacement stock on their two support blocks.
New Zealand Land Search and Rescue
PGW continues our relationship with Land Search and Rescue. This is
an opportunity for PGW to support a national charitable organisation,
whose 3,500 professionally trained volunteers carry out crucial search
and rescue work across the country.
Land Search and Rescue Group Support trucks now display PGW’s logo
on their vehicles and some of PGW’s fleet feature the Land Search and
Rescue logo too.
Land Search and Rescue’s Chief Executive, Carl McOnie says, “Without
the support from companies like PGW, Land Search and Rescue couldn’t
help the lost, missing and injured, and couldn’t keep the service free of
charge, and available 24/7, 365 days of the year. We are very grateful for
PGW's ongoing support.”
Cash for Communities
The Cash for Communities programme, since launching in 2011, has raised
over $650,000 for rural focused organisations, schools, clubs, and charities
nationwide. Partnered by PGW and Ballance Agri-Nutrients, $50,378
was donated following the 2021 spring season to nominated recipients
nationwide.
Visiting one of the programme’s recipients from 2020, it is easy to see the
positive impact these contributions have made. Based in Whangarei, the
Northland Emergency Services Trust (NEST ) operates the Northland Rescue
Helicopter Service. As Steve Couchman, one of the 13 NEST pilots explains,
“We respond to, on average, four call outs within a 24-hour period, travelling
from half an hour to three hours away, for emergency calls and to pick up
patients from hospitals.”
The Cash for Communities donation went towards NEST’s operational costs
including maintenance of the helicopters and fuel. “This donation is greatly
appreciated, with the support shown by farmers making all the difference
and allowing us to keep flying and saving lives,” says Steve.
The Cash for Communities programme has the support of farmers and
growers who nominate an organisation or charity to receive their donation.
One dollar is donated for every tonne of participating Ballance Agri-Nutrients
fertiliser purchased on their PGW or Fruitfed Supplies account during the
spring campaign period.

34
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
|
35
National Shearing Circuit
PGW is pleased to continue our long-
standing sponsorship of the National
Shearing Circuit. PGW co-sponsors
the event with animal health product
manufacturer Nexan, under the title of
the PGG Wrightson Vetmed National
Shearing Circuit, along with support
from
Hyundai.
Circuit Committee Chairman Warren
White says, “PGW has been onboard as a
sponsor for almost 20 years now and we
are delighted to have their support for
what is an excellent and enduring event,
which is now approaching its 50th year,
having been established in 1973. As a
sponsor PGW has been fully committed
to helping keep the circuit going strong,
particularly under the challenging
COVID-19 impacted circumstances we
faced last year.”
A&P Shows, Regional Field Days
and Fieldays NZ
The many Agricultural and Pastoral shows
(A&P) and field days that occur across the
country and throughout the year provide
PGW with a wonderful opportunity to
bring local rural communities together
and recognise the continuing loyalty of
our clients.
Unfortunately, due to COVID-19, a
significant number of A&P Shows
and other rural events, including the
New Zealand Agricultural Show in
Christchurch were cancelled in 2021
but we look forward to supporting their
return in 2022. Fieldays NZ has been
postponed from June 2022 to later in
the
y
ear.
Industry Associations
Our people are highly regarded
members of man
y national associations.
By providing expert knowledge, advice,
and support they help these essential
organisations achieve their industry
objectives.
Matt Chisholm, Philip Hunt, and Alex
Clapham discuss the incredible effort
of the shearers at the end of the
Shear 4 Blair fundraising event.
Photo credit: Standish Photography.
Community Events
Making a positive contribution to our
local rural communities is important
to PGW and our people. As a member
of these communities, we enjoy
supporting local groups and activities
that promote excellence in farming and
ultimately help grow the country. We
prefer to sponsor through an in-kind
contribution, such as the use of PGW
vouchers, marquee supply or the
provision of people to help (e.g. judges).
Southland Charity Hospital
During Waitangi weekend this year PGW
Wool representative Jared Manihera
was instrumental in organising the
Shear 4 Blair 24-hour shear-a-thon.
The event raised more than $200,000
towards medical equipment for the
Southland Charity Hospital. Jared’s
latest initiative involves wool growers
donating bales through the Invercargill
PGW Wool store to be sold on behalf
of the hospital with proceeds going
towards the hospital build and ongoing
operational costs.
Monaro Scholarship
PGW Wool is delighted to sponsor the
Otago Merino Association’s annual
Monaro Scholarship which supports
young people in the merino industry.
Selected annually, scholars visit a
variety of merino properties in Monaro,
New South Wales, to gain a better
understanding of breeding principles,
bloodlines, and farm management in
Australia.
Paul Muir and Bruce Cotterill outside PGW’s
Carterton Rural Supplies store.
Photo credit: Bike for Blokes.
School children learn about the natural attributes
of wool in the Wool in Schools container.
Photo credit: Wool in Schools.
Collaboration within the industry is
important and many of the Fruitfed
Supplies team give back to the
horticultural industry by participating in
industry associations, advisory panels,
and boards.
Wool in Schools
PGW Wool continue their sponsorship
and support of the Wool in Schools
containers initiative as part of Campaign
for Wool. The shipping container
wool sheds visit schools throughout
the country promoting the natural
attributes of wool.
Wool in Schools is a free service to
participating schools and has recently
passed the milestone of 25,000
students who have participated in the
programme. Each school’s wool shed
experience usually includes a visit from
a local PGW team member, adding
greater depth of knowledge and
providing inspiration to the students.
Supporting the Horticulture Sector
Fruitfed Supplies is committed to supporting
the horticultural industry. We sponsor
numerous events and work closely with
organisations and groups who promote
technical innovation and education.
We particularly enjoy encouraging and
celebrating the next generation of growers
and the future leaders of the industry. We
are proud to sponsor The Young Grower
of the Year, Young Viticulturalist of the Year,
Young Horticulturist of the Year, and Young
Winemaker of the year competitions. In
addition, we provide the Fruitfed Supplies
Horticulture Scholarship which is available
to a third year Massey University student
studying horticulture.
Bringing together specialists from across
the
horticultural industry provides
opportunities to share and progress ideas.
Fruitfed Supplies is honoured to co-
sponsor the Potato NZ Conference, Hort NZ
Conference, Silver Secateurs competition,
the NZ Pinot Noir Conference, and numerous
wine awards.
Bike For Blokes
This was the first year of Bike for Blokes,
which involved 'a couple of blokes
from the city' cycling the length of
the country to raise over $200,000 for
Farmstrong and The Prostate Cancer
Outcomes Registry – New Zealand. PGW
supported the duo, Bruce Cotterill and
Paul Muir, with a donation and raised
awareness of their campaign and the
charities through our store network and
social media platforms.
Bruce says, “The first Bike for Blokes cycle
trip from North Cape to Bluff would not
have been anywhere near as successful
if it were not for organisations like PGW
supporting us. In fact, with a visible
high-profile store in most towns across
the country, we felt like the PGW team
was with us all the way.”
Rural Support Trust
Agritrade’s proprietary animal health
product, The Time Capsule, ran a ‘Find
the Golden Capsule’ promotion this
past Facial Eczema season which raised
$7,000 for the Rural Support Trust. Five
farmers were also awarded a $1,000
Prezzy Card for finding a golden capsule
when they purchased the product.
Riding for the Disabled
and Cystic Fibrosis
The Valagro and Fruitfed Supplies Blenheim
‘Sweet Heart’ promotion raised over
$6,000 and supported both Riding for the
Disabled and Cystic Fibrosis New Zealand
in
Marlborough.
Disaster Recovery
When weather events impact rural life, PGW’s
people are there to help our clients and
communities through these natural disasters.
Our people live and work rurally, and they are
often some of the first called on to provide
practical assistance and wellbeing support.
During this year’s severe weather events
that caused significant damage in both the
North and South Islands our people at our
retail stores supported local community
development trusts and flood relief funds.
Vouchers were donated which could be
utilised in whatever way best suited the
circumstances of the individuals to help
farmers and growers get back on their feet
as
quick
ly as possible.
Team members also provided logistical
recovery coordination on behalf of official
agencies. The relationships and connections
our people have with local communities are
invaluable in getting accurate and timely
information to those adversely affected.
Supporting Industry Events, A&P Shows,
Regional Field Days, Rural Communities,
and Disaster Recovery
PGG Wrightson in the Community continued

A Technical Team member records
data as part of a R&D trial.
ANNUAL REPORT 2022
|
37
Environmental, Social
and Governance Reporting
High
HighLow
Business impact
Stakeholder impact
PGW’s ESG Materiality Assessment Matrix
Mapping the highest priority ESG factors following feedback and consultation
with PGW stakeholders.
Workplace
Health & Safety
Product Traceability &
Lifecycle Management
Waste & Hazardous
Materials Management
Products &
Services Quality
Employee Diversity
& Inclusion
Partnerships
GHG Emissions
Ecological Impacts
Agri Inputs
Compliance
Change
Management &
Innovation
Sustainable Procurement
of Materials
Impacts of
Climate Change
Animal Welfare
Wellbeing Product provenance Hazardous substances Role in NZ Agri Climate Change Natural resources Embedding sustainability
Te pūrongo ā-Taiao, ā-Pāpori me te Mana Whakahaere
36
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PGG WRIGHTSON LIMITED

38
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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39
Environmental
An Environmental Compliance review was
undertaken as part of FY22’s Business Assurance
Plan. The intention was for PGW Group to determine
the best way forward when considering compliance,
governance, cost/efficiencies, and transparency for
environmental compliance.
The review was undertaken with strong support from the
business, and it highlighted some good practices that are
occurring as well as some areas for improvement. The Board
and Executive team reviewed the findings and are committed
to addressing the issues raised. We are currently prioritising the
implementation of the recommended remedial actions, the
first of which is to embed a revised Environmental Compliance
Framework at PGW.
During the year a number of initiatives were introduced to
improve our environmental credentials across the company.
Environmental Management is a key priority for our Retail &
Water business. During FY22 senior members of the Technical
Team advised industry groups about the future sustainability
of agrichemical use. Further resource was committed to R&D
through our Technical Team to investigate the development of
biological alternatives into commercial spray programmes for
horticulture.
Members of the Technical Team shared insights and knowledge
with government departments responsible for developing
environmental regulation. The Team also reviewed new
government legislation to improve the understanding of internal
teams, so they can assist farmers in navigating the new rules and
regulations (see pages 24 to 25).
A highlight of the year was that our Fruitfed Supplies Blenheim
store was awarded AA level British Retail Consortium Global
Standards (BRCGS) certification for our winery products, which
is the highest BRCGS certification available. BRCGS is a leading
global brand and consumer protection scheme, and this
certification provides our clients with the assurance that our
processes and products have been independently audited to
be safe, compliant, and of a high quality. Over time, we aim
to replicate this certification to all our winery serving Fruitfed
Supplies’ sites and we aim to apply for a BRCGS certification in
Hastings during the coming year.
A number of our Retail sites have been undertaking waste audits
to determine our current trends in waste flow and accumulation.
This information will be used to help align our processes and
policies concerning waste and recycling. Our sites remain
committed to work with suppliers and the wider industry to
help our clients with more recycling solutions.
An additional Quality Assurance coordinator was employed to
support the business.
A paperless project was rolled out across our Agritrade
distribution centres which saves at least two reams of paper per
day in each centre.
Agrecovery is celebrating 15 years of operation, with the launch
of the first container recycling programme back in mid-2007.
Since its inception, Agrecovery has recycled over 3.5 million
kilograms of plastic containers and over 165,000 kilograms of
expired or unwanted agrichemical.
Agrecovery’s Chief Executive Tony Wilson says, “We now have
over 100 brands signed up to our programmes with more
joining every month. It’s great to see these brands take
responsibility for their products and their packaging and ensure
a free service for our 17,000-plus members. We’re indebted to
the collective efforts of our partners such as PGW, who ensure
the continued success of our nationwide Product Stewardship
Schemes and ability to clear more waste than ever before from
New Zealand’s primary sector.”
PGW is a founding Agrecovery member and provides logistical
support via Agrecovery collection points at some of our
sites and hosting container collection events. We also work
with clients to ensure used containers are returned, ready for
recycling. Our stores in Marlborough and Hawke’s Bay worked
alongside Agrecovery to trial free plastic recycling of specific ag-
chem and nutrient bags made from Low Density Polyethylene.
PGW management is also represented on the Agrecovery
Foundation Board.
Another project in Hawke’s Bay, in conjunction with Plasback,
included coordinating the collection of a wide array of plastic
derivatives which were pressed into bales to be repurposed.
PGW Livestock has completed a comprehensive assessment of
all its North Island owned saleyards which includes a schedule
for capital improvements to ensure regulatory and compliance
Statement from Stephen Guerin
Chief Executive Officer
PGW has a rich heritage of more than 170 years of working alongside New Zealand’s farmers
and growers and contributing to the agricultural sector and provincial communities. We are
proud of our longevity and our enduring relationships with our clients, suppliers and other
industry participants.
We take a future focused outlook in how we go
about our business and look for ways in which we
can contribute and enhance our clients’ businesses
and benefit the environment through innovative
proprietary research and development initiatives.
We look forward to supporting the rural sector in a
sustainable manner for many generations to come.
A key focus of our PGW Group Strategy is evolving
our approach to the Environment and Sustainability.
During the past year our Environment, Social, and
Governance (ESG) Working Group undertook significant
work in this area. The Group engaged with colleagues
across the business and with other stakeholders and
suppliers to benchmark PGW’s carbon emissions. We
now have an established process in place for capturing
the information required to calculate emissions, and
our initial calculations have undergone a peer review
and GAP analysis so we can report on these in the
future. Members of the Group represent PGW on The
Aotearoa Circle’s Agri-Adaptation Roadmap which
will deliver a strategy for how the sector can adapt to
climate change and supply chain disruptions.
PGW undertook a materiality assessment to
determine and prioritise which ESG factors are
important to our key stakeholders and material to
our business objectives and activities. Our societal
and environmental impact was assessed in line with
the Global Reporting Initiative’s (GRI) guidance on
sustainability materiality assessments.
Our materiality assessment methodology consisted of:
Desktop research which included PGW’s strategic
objectives and risks, peer analysis, industry trends,
and internal documentation
Stakeholder engagement which involved
interviews with internal (Board, Executive team, and
employees) and external (clients, suppliers, and iwi)
stakeholders
An interactive workshop which facilitated
discussion with PGW’s Executive team to assess the
thematically grouped ESG topics identified during
the desktop and interview steps
A report of findings and recommendations to
validate the set of material topics and other findings
identified.
The assessment included a ‘double materiality’
approach which includes looking at both PGW’s
impact on each ESG topic identified and then each
ESG topics’ impact on PGW. PGW’s Materiality
Assessment Matrix has been included in this annual
report on page 37 to visually display our material
topics and priorities. The outcomes of the Materiality
Assessment Report will assist us in determining
a Group Sustainability Strategy, including the
development of a framework from which activity and
impacts can be recorded, measured, and reported on.
In this report we have included our first GRI Content Index (see pages 107 to 112). We have responded to the
disclosures in the spirit of GRI's Core approach. We look forward to growing our expertise and maturity in this
area and increasing our reporting capability over time.

Stephen Guerin
Chief Executive Officer
The Darfield Rural Supplies Store hosts an
Agrecovery container collection event.
The Blenheim Fruitfed Supplies store.The Hawke’s Bay recycling initiative.
Environmental, Social and Governance Reporting continued

PGG Wrightson Technical Field Representative,
Sarah Swinbourn, monitors the number of
diamond back moth and white butterfly
caterpillars in a kale crop on the Foote Family
Farm in Lawrence, Otago, for the Shepherdess
magazine autumn 2022 edition.
40
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PGG WRIGHTSON LIMITED
requirements are met. We expect to complete a review of our
South Island saleyards during 2023. With many sites being
co-owned with other livestock companies, PGW Livestock has
taken a leading role in developing solutions to enhance site
works to improve environmental outcomes.
A number of saleyards have undergone significant
improvements in upgraded monitoring. The sites utilise
technology with automated responses and alerts programmed
on to multiple devices, including mobile phones. This will
enable enhanced reporting of trade waste and storm water
discharge.
For the coming year we have chosen the lowest carbon
dioxide emissions fit for purpose utility available for our fleet,
and we are actively seeking the best fit for purpose hybrid
vehicles. We have two electric vehicle pool cars in our fleet.
Where suitable we have added more electric forklifts into our
stores and PGW Wool has ordered an electric fork truck to trial
for suitability for a wider roll-out.
We are upgrading stores and offices with light-emitting diode
(LED) lighting. Lighting has been targeted as providing our
sites the best savings when looking at energy efficiency
initiatives as it can be responsible for up to 70 per cent of the
power consumed by a site.
Governance
PGW is committed to acting with integrity and
delivering high standards of ethical behaviour
and
accountabilit
y.

As a responsible corporate citizen, we have robust governance
and risk management procedures that reflect our company
values and obligations, align with legislation, and take account
of the interests of our shareholders and other stakeholders.
PGW’s Board provide the strategic direction for the company
and Executive team deliver the strategy. The Board and
Executive team’s profiles are set out in this annual report
(see pages 12 to 15). Governance measures including
remuneration, shareholder details, and risk management are
outlined in PGW’s Governance section of this annual report
(see pages 90 to 106).
Social
We continue to invest in developing our people
through skills-based training and professional
development programmes to enable our team
members to grow and perform to the best of
their
abilities.

In turn this focus on personal and professional growth and
development strengthens relationships and trust with our
clients. It also encourages engagement between our team
members and with the wider business and communities within
which we operate. Over the past year 620 team members
attended off-job learning and development externally
facilitated training programmes and our employees completed
more than 15,000 online learning and compliance courses.
To enable our people to achieve our common purpose –
helping grow the country – we have a suite of people and
safety related policies and procedures which are systematically
revised and updated, and which align to relevant New Zealand
legislation. These are supported by our Code of Conduct,
Company Values (“A-LIST” - Accountability, Leadership, Integrity
and Trust, Smarter, and Teamwork), and our Leadership
Competencies (“TO LEAD” - Take Care, Own It, Lead People,
Evolve, Authentic You and Develop).
As we continue to evolve as an organisation, we learn more
about what strong performance in safety, wellbeing and
environmental compliance mean to us, and to our people.
We care about our people, the environment, and communities
within which we operate, so we have revised our strategy to
ensure we embed a safe and certain culture where the work is
done, in a manner that is pragmatic, sustainable, effective, and
engaging. This remains a key focus for our Board, Executive
team and our people. Encouraging progress has been made
to strengthen our foundations in visible leadership, critical risk
management, and the simplification of systems and assurance.
We are proud to be leaders in the rural communities in which
we operate. Through sponsorship of industry events to grass
root organisations we demonstrate our dedication to growing
the agricultural and horticultural industries (see pages 30 to 35).
PGW is part of the global supply chain and we are committed
to working with our suppliers to ensure responsible sourcing of
products. We act lawfully and honourably, and our mandatory
standards provide a consistent professional approach to
the procurement of products and services. Ethical and
environmental factors include the whole-of-life of a product,
working conditions, ethical behaviour, antibribery, and a
prohibition on child labour.
PGG Wrightson Limited
Key Financial Disclosures
Consolidated Financial Statements for the year ended 30 June 2022
Ngā Tauākī ā-Pūtea Tōpū mō te tau i mutu i te 30 Hune 2022
Ngā Whakapuakanga Pūtea Hira
ANNUAL REPORT 2022
|
41
Environmental, Social and Governance Reporting continued

KEY FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Hira
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 30 June 2022
42
|
PGG WRIGHTSON LIMITED ANNUAL REPORT 2022
|
43
PGG WRIGHTSON LIMITED
DIRECTORS’ RESPONSIBILITY STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022
The Directors are responsible for ensuring that the consolidated financial statements give a
true and fair view of the financial position of the Group as at 30 June 2022 and the financial
performance and cash flows for the year ended on that date.
The Directors consider that the consolidated financial statements of the Group have been
prepared using appropriate accounting policies, consistently applied and supported by
reasonable judgements and estimates and that all of the relevant financial reporting and
accounting standards have been followed.
The Directors believe that proper accounting records have been kept which enable, with
reasonable accuracy, the determination of the financial position of the Group and facilitate
compliance of the consolidated financial statements with the Financial Reporting Act 2013
and the Financial Markets Conduct Act 2013.
The Directors are pleased to present the consolidated financial statements for PGG Wrightson
Limited and its controlled entities (together the “Group”) set out on pages 43 to 85 for the
year ended 30 June 2022.
The consolidated financial statements contained on pages 43 to 85 have been authorised for
issue on 15 August 2022.
For and on behalf of the Board.
Joo Hai Lee

S
arah Brown
Chair

Dir
ector and Audit Committee Chair
2022 2021
NOTE $000 $000
Continuing operations
Operating revenue 1 952,700 847,815
C
ost of sales 2 (704,181) (624,589)
Gross profit 248,519 223,226
Other income 334 366
Employee expenses (132,874) (119,828)
Other operating expenses 3 (48,826) (47,735)
O
perating EBITDA
27(E) 67,153 56,029
Non-operating gains/(losses) 4 699 4,456
Impairment and fair value gains/(losses) 5 (2,182) 1,832
D
epreciation and amortisation expense
(28,024)

(27,283)
EBIT
27(E) 37,646 35,034
Net interest and finance costs 6 (5,089) (5,621)
Profit from continuing operations before income tax 32,557 29,413
Income tax expense 7 (8,271) (6,693)
P
rofit from continuing operations, net of income tax 24,286 22,720
Discontinued operations
Results from discontinued operations, net of income tax – (7)
P
rofit/(loss) from discontinued operations, net of income tax
–

(7)
N
et profit after tax attributable to Shareholders of the Company
24,286 22,713
Basic & diluted earnings per share (EPS)
2022 2021
NOTE $ $
Basic & diluted EPS 8 0.322 0.301
Basic & diluted EPS - continuing operations 8 0.322 0.301
The accompanying notes form an integral part of these consolidated financial statements.

KEY FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Hira
44
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PGG WRIGHTSON LIMITED ANNUAL REPORT 2022
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45
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2022
2022 2021
NOTE $000 $000
Net profit after tax attributable to Shareholders of the Company 24,286 22,713
Other comprehensive income/(loss)
Continuing operations
Items that will never be reclassified to profit or loss
Changes in fair value of equity instruments
7 136
Remeasurements of defined benefit asset/liability 18 (2,522) 9,620
Tax on remeasurements of defined benefit asset/liability 7 706 (2,694)
Total other comprehensive income/(loss) for the period (1,809) 7,062
Total comprehensive income for the period attributable to Shareholders of the Company 22,477 29,775
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
SEGMENT REPORT
For the year ended / as at 30 June 2022
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 Chair 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:
–
Agency: 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 livestock
receivables (refer to Note 12 Go Livestock Receivables for further
explanation regarding this programme).
–

Retail &
Water: This segment includes the Rural Supplies and
Fruitfed Supplies retail operations, Agritrade, PGG Wrightson
Water, PGW Consulting, 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 (non-operating segment): Other relates to certain Group
Corporate activities including Governance, Finance, Treasury, Risk
and Assurance, and other support services (such as corporate
property services and marketing). The Marketing function
derives sales revenue from the Group's rewards and on-charging
programmes.
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 recorded 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 allocated 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 the 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 functions continue to be reported
outside of the operating segments.
B.

G
eographical segment
The Group operates within New Zealand only and its revenue is derived
primarily from New Zealand.

PGG WRIGHTSON LIMITED
SEGMENT REPORT CONTINUED
For the year ended / as at 30 June 2022
KEY FINANCIAL DISCLOSURES
|
Ngfi Whakapuakanga Pfltea Hira
46
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
|
47
C.Operating segment information
AGENCY RETAIL & WATER OTHER TOTA L
(NON OPERATING SEGMENT)
20222021202220212022202120222021
$000$000$000$000$000$000$000$000
Sales revenue 75,061 74,022 746,093 638,622 1,327 2,250 822,481 714,894
Commission revenue 109,208 107,685 76 79 89 58 109,373 107,822
Construc
tion contract revenue
– – 14,235 18,950 – – 14,235 18,950
Int
erest revenue on Go receivables
4,254 3,805 – – – – 4,254 3,805
Debt
or interest charges 438 615 556 848 (26) (24) 968 1,439
Sublease income 410 356 348 118 631 431 1,389 905
Total e
xternal operating revenues
189,371 186,483 761,308 658,617 2,021 2,715 952,700 847,815
Op
erating EBITDA
21,844 25,179 52,495 37,533 (7,186) (6,683) 67,153 56,029
Non-operating gains/(losses) 695 3,885 133 991 (129) (420) 699 4,456
Impairment and fair value gains/(losses) (2,970) 917 691 589 97 326 (2,182) 1,832
Depr
eciation and amortisation expense (8,521) (8,457) (16,067) (15,060) (3,436) (3,766) (28,024) (27,283)
EBIT 11,048 21,524 37,252 24,053 (10,654) (10,543) 37,646 35,034
Net interest and finance costs
(2,843) (2,418) (1,665) (2,073) (581) (1,130) (5,089) (5,621)
Profit/(loss) from continuing operations before income tax 8,205 19,106 35,587 21,980 (11,235) (11,673) 32,557 29,413
Income tax benefit/(
expense) (2,197) (3,976) (10,194) (6,360) 4,120 3,643 (8,271) (6,693)
Pr
ofit/(loss) from continuing operations, net of income tax
6,008 15,130 25,393 15,620 (7,115) (8,030) 24,286 22,720
Profit/(loss) from discontinued operations, net of income tax
– – – – – (7) – (7)
Net profit/(loss) after tax 6,008 15,130 25,393 15,620 (7,115) (8,037) 24,286 22,713
Segment assets
206,204 184,177 280,458 245,131 23,290 23,686 509,952 452,994
Assets held for sale – – – 40 – – – 40
Total segment assets
206,204 184,177 280,458 245,171 23,290 23,686 509,952 453,034
Total segmen
t liabilities
(101,724) (101,147) (180,332) (155,907) (55,212) (22,442) (337,268) (279,496)
Capital expenditure (additions to non-current assets)
5,653 6,940 7,430 12,468 3,571 1,677 16,654 21,085
The ac
companying notes form an integral part of these consolidated financial statements.

KEY FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Hira
48
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PGG WRIGHTSON LIMITED ANNUAL REPORT 2022
|
49
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2022
2022 2021
NOTE $000 $000
Cash flows from operating activities
Cash was provided from:
Receipts from customers
913,260 818,914
Receipt for the termination of partnering contract, net of costs – 3,934
Dividends received 5 1
Interest received 5,321 5,307
918,586 828,156
Cash was applied to:
Payments to suppliers and employees (884,560) (765,212)
Interest paid (957) (646)
Interest paid on lease liabilities
(3,786)

(4,036)
Income tax paid (5,623) (28)
Lump sum contributions to defined benefit plan (ESCT inclusive) – (563)
(894,926)

(770,485)
Net cash inflow/(outflow) from operating activities 23,660 57,671
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment and assets held for sale
1,053 3,294
Proceeds from sale of investments
7

136
1,060 3,430
Cash was applied to:
Purchase of property, plant and equipment
(5,926) (5,500)
P
urchase of intangibles (2,881) (1,309)
Investment sale costs – (51)
(8,807)

(6,860)
Net cash inflow/(outflow) from investing activities (7,747) (3,430)
Cash flows from financing activities
Cash was provided from:
Increase in external borrowings and bank overdraft
30,000 –
30,000 –
C
ash was applied to:
Dividends paid to shareholders (23,331) (9,343)
Repayment of external borrowings and bank overdraft (2,400) (40,100)
Repayment of principal portion of lease liabilities (18,873) (18,299)
(44,604) (67,742)
Net cash inflow/(outflow) from financing activities (14,604) (67,742)
Net increase/(decrease) in cash held 1,309 (13,501)
Opening cash 3,367 16,868
Cash and cash equivalents 9 4,676 3,367
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
RECONCILIATION OF PROFIT AFTER TAX
WITH NET CASH FLOW FROM OPERATING ACTIVITIES
For the year ended 30 June 2022
2022 2021
$000 $000
Net profit after tax 24,286 22,713
Add/(deduct) non-cash/non-operating items:
Depreciation and amortisation
28,027 27,283
Impairment and fair value losses/(gains) 2,182 (1,832)
Reversal of software capital projects expensed in the current period – 750
Bad debts written off (net) (633) 67
L
oss/(profit) on sale of assets and investments, and lease terminations (763) (909)
Foreign exchange loss/(gain) (9) 333
Deferred tax expense/(benefit) (1,797) (258)
Defined benefit expense/(gain) (85) 35
Pension contributions not expensed through profit or loss
–

(563)
Other non-cash/non-operating items 108 83
Add/(deduct) movement in working capital items:
Change in inventories
(20,766) 759
Change in accounts r
eceivable, Go livestock receivables and prepayments
(41,909)

(22,694)
Change in trade creditors, provisions and accruals
26,799

26,468
Change in income tax payable 4,444 6,917
Change in other cur
rent assets/liabilities 3,776 (1,481)
Net cash flow from operating activities 23,660 57,671
Cash Flows Accounting Policies
In the statement of cash flows, cash receipts and payments on behalf of customers which reflect the activities of the customers rather than
those of the Group are reported on a net basis.
The accompanying notes form an integral part of these consolidated financial statements.

KEY FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Hira
ANNUAL REPORT 2022
|
5150
|
PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
2022 2021
NOTE $000 $000
ASSETS
Current
Cash and cash equivalents
9 4,676 3,367
Short-term derivative assets 10 1,547 843
Trade and other receivables 11 170,336 148,171
Go livestock receivables 12 65,405 45,869
I
nventories 13 102,048 81,498
Assets classified as held for sale – 40
Other current assets 3,130 2,842
Total current assets 347,142 282,630
Non-current
Long-term derivative assets
10

17

–
D
eferred tax asset
7

10,676

8,173
I
nvestments in equity accounted investees
102

92
G
o livestock receivables
12

704

–
O
ther investments
479

474
I
ntangible assets
14

12,101

15,663
R
ight-of-use assets
15

93,074

101,064
P
roperty, plant and equipment
16

45,657

44,627
D
efined benefit asset
18

–

311
T
otal non-current assets
162,810

170,404
T
otal assets
509,952 453,034
LIABILITIES
Current
Debt due within one year
9 7,500 9,900
Short-term derivative liabilities
10

1,009

242
Accounts payable and accruals 17 189,290 158,883
Short-term lease liabilities
15

18,229

17,631
Income tax payable 7,910 3,466
T
otal current liabilities 223,938 190,122
Non-current
Long-term debt

9

30,000

–
L
ong-term derivative liabilities
10

152

143
L
ong-term lease liabilities
15

78,290

86,387
L
ong-term provisions
17

2,762

2,844
D
efined benefit liability
18

2,126

–
T
otal non-current liabilities
113,330

89,374
T
otal liabilities
337,268 279,496
EQUITY
Share capital 28 372,318 372,318
Reserves
28

12,973

14,782
R
etained earnings/(deficit)
28

(212,607)

(213,562)
T
otal equity attributable to Shareholders of the Company
172,684

173,538
T
otal liabilities and equity
509,952 453,034
The accompanying notes form an integral part of these consolidated financial statements.
PGG Wrightson Technical Field
Representative, Simon Dodds,
checks cob development and dry
matter percentage to determine an
estimated silage harvest date with
Brad Payne at Payne Farm Limited,
near Cambridge, Waikato.
PGG Wrightson Limited
Additional Financial
Disclosures
Including Notes to the Consolidated Financial Statements for the year ended 30 June 2022
Tae atu ki Ngā Pitopito Kōrero ki Ngā Tauākī Pūtea Tōpū mō te tau i mutu i te 30 Hune 2022
Ngā Whakapuakanga Pūtea Tāpiri

52
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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53
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
1 OPERATING REVENUE
2022 2021
$000

$000
Revenue from contracts with customers
Sales revenue 822,481 714,894
C
ommission revenue
109,373

107,822
C
onstruction contract revenue
14,235

18,950
O
ther operating revenue
Interest revenue on Go livestock receivables 4,254 3,805
D
ebtor interest charges
968

1,439
Sublease income

1,389

905
952,700 847,815
Income Recognition Accounting Policies
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably
measured. The following specific recognition criteria must also be met before revenue is recognised.
Sales revenue
Sales revenue comprises the sale value of transactions where the Group acts as a principal; for example, retail store sales, and sales of wool
and velvet products. Revenue is measured at the transaction price when control is transferred to which an entity expects to be entitled
in exchange for transferring goods or services to a customer. For sale of goods, the transfer of control occurs when the risks and rewards,
physical possession and the legal title of the goods have been transferred and accepted by the customer and the customer has a present
obligation to make the payment.
Our customers may be entitled to discounts or rebates for certain items and/or volumes purchased, under varying categories. These
discounts or rebates are defined as variable consideration and are included in the transaction price as a component of operating revenue
upon the completion of our performance obligations. These discounts/rebates are contractual in nature and known at balance date,
therefore no assumptions or estimates are required.
The Group offers a range of payment terms, and in some cases can be up to 12 months. The Group does not recognise a financing element
for contracts with terms of 12 months or less.
When part of the Group's performance obligation in selling its products is to arrange freight and/or insurance, the Group is considered to
be acting as an agent and these costs are recognised net against freight recoveries.
The Group offers warranties as required by New Zealand law and/or per the terms and conditions of the contracts with customers. The
Group recognises the obligations under these warranties as a provision.
Commission revenue
Commission revenue comprises commission for transactions where the Group acts as an agent. For agency commissions, the Group
does not take inventory risk or title for inventories, or for the Group's Livestock and Real Estate businesses, biological assets and properties
respectively. The Group generates commissions from acting as an agent for organising the sale of livestock or real estate, and from the
successful referral of clients to an unrelated insurance partner.
Revenue is recognised at a point in time upon completion of service.
Construction contract revenue
Construction services are provided to customers in the Water business to construct pivots and irrigation systems. Most contracts contain a
single performance obligation. The size and duration of the contracts can vary significantly, and customers are invoiced as work progresses.
Most contracts are completed within 12 months; therefore, the unearned revenue on these contracts has not been disclosed.
The Group accounts for revenue over time, which best depicts the pattern of transfer of the construction services to the customer. The
Group uses an input method to recognise revenue based on a percentage of cost completed. This method involves judgements relating to
a contract's expected margin and its stage of completion.
Interest and similar income and expense
The Group recognises the fixed fees charged to customers under its Go programme as interest revenue. Refer to Note 12 Go Livestock
Receivables for further explanation regarding this programme. This interest revenue is recognised over the term of the Go contracts which
can be for a term of up to 540 days.
The Group also recognises interest revenue on an accruals basis when the services are rendered using the effective interest method. Refer
to the accounting policies under Note 6 Net Interest and Finance Costs for further explanation on the effective interest method.
Sublease income
The Group recognises lease payments received under subleases as income on a straight-line basis over the lease term. Refer to Note 15
Right-of-Use Assets and Lease Liabilities for further explanation.
2 COST OF SALES
2022 2021

N
OTE

$000 $000
Depreciation and amortisation 189 187
Employee benefits (including commissions) 32,541 34,245
I
nventories and consumables
13

632,250

553,473
F
reight
12,438

9,814
O
ther 26,763 26,870
704,181 624,589
3 OTHER OPERATING EXPENSES
2022 2021
$000 $000
Audit of annual financial statements of the Company by EY 266 240
Other Advisory Services provided by EY:
Facilitation of sustainability materiality assessment
21 –
Cloud computing project assistance 18 –
Dir
ectors' fees 565 552
D
onations
7

8
I
ncrease/(decrease) in provision for impaired trade receivables, Go livestock receivables and contract assets (1,109) (774)
Net bad debts written off / (recovered) 476 841
IT & t
elecommunication costs 13,372 12,981
M
arketing
4,665

3,820
M
otor vehicle costs 7,012 5,713
Travel costs 2,317 2,858
R
ental and operating lease costs
901

460
O
ccupancy costs (excluding rental and operating lease)
5,672

5,110
O
ther staff costs
7,442

6,104
O
ther expenses 7,201 9,822
48,826 47,735
4 NON-OPERATING GAINS/(LOSSES)
2022 2021
$000 $000
Receipt for the termination of partnering contract, net of costs – 3,934
Gain on sale of property, plant and equipment 763 960
Other non-operating gains/(losses) (64) (438)
699 4,456

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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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55
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
5 IMPAIRMENT AND FAIR VALUE GAINS/(LOSSES)
2022 2021

N
OTE

$000 $000
Net impairment reversal/(impairment) – Property, plant and equipment 5(A) 414 906
Net impairment reversal/(impairment) – Right-of-use assets 5(B) 695 910
Net impair
ment reversal/(impairment) – Software Assets
5(
C)
(3,384)

–
O
ther fair value gains/(losses)
93

16
(2,182) 1,832
A. Saleyards
At balance date, the Group reviewed its saleyard assets for indicators of impairment and for any indication that a previously recognised impairment
loss may have reversed. The Group recognised a net reversal of $0.41 million of previously recognised impairment losses on two saleyards (2021:
$0.91 million net reversal). This was based on indicative external market valuations for the saleyards.
B.
R
ight-of-use assets
At balance date, the Group reviewed its right-of-use assets for indicators of impairment and for any indication that a previously recognised
impairment loss may have reversed. As a result of this review, the Group reversed $0.7 million of previously recognised impairment losses relating
to the Water business CGU (2021: $0.91 million reversal). The impairment reversal resulted from changes in key assumptions applied to the
discounted cash flow model utilised to determine the value in use for impairment testing. The change in assumptions included improved current
and estimated future earnings following the 2021 restructure of the business. The discount rate applicable for the Water business and used in the
discounted cashflow model was 12.1%.
C.

S
oftware Assets
At balance date, certain intangible assets held within the Agency Segment were impaired following impairment review. Indicators of impairment
were identified following analysis of the financial performance of the CGU including historic losses generated and completion of the CGU's future
budgets. Impairment testing was performed using a discounted cash flow calculation to determine the value-in-use based on anticipated future
earnings to be derived from the CGU. An impairment loss in the amount of $3.4 million has been recognised in the Statement of Profit or Loss
(within impairment and fair value gains/(losses). The discount rate applied in the discounted cashflow calculation was 15%. All other assets held by
the CGU have a recoverable amount that is higher than the carrying amount and consequently have not been impaired.
Impairment Accounting Policies
The carrying value of the Group's assets are reviewed at each reporting date to determine whether there is any objective evidence of
impairment. An impairment loss is recognised whenever the carrying amount exceeds its recoverable amount. Impairment losses directly
reduce the carrying value of assets and are recognised in profit or loss unless the asset is carried at a revalued amount in accordance with
another standard.
Non-financial assets
The carrying amounts of the Group's non-financial assets (other than inventories and deferred tax assets) are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, then the recoverable amount of the asset or
the cash-generating unit (CGU) to which the asset relates is estimated. A CGU is the smallest identifiable asset group that generates cash
flows that are largely independent from other assets and groups.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the
estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset or CGU.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are
recognised in profit or loss.
An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses
no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously
recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable
amount since the last impairment loss was recognised.
An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
6 NET INTEREST AND FINANCE COSTS
2022 2021
$000 $000
Interest income 99 63
Interest funding expense
Bank interest on loans and overdrafts

(957)

(646)
Bank facilit
y fees
(875)

(908)
(1,832) (1,554)
Net interest income/(expense) excluding interest on lease liabilities (1,733) (1,491)
Interest on lease liabilities (3,786) (4,036)
Foreign exchange gain/(loss)
Net gain/(loss) on foreign denominated items

485

(217)
F
air value gain/(loss) on foreign exchange derivatives (55) 123
430 (94)
Net interest and finance income/(expense) (5,089) (5,621)
Interest and Finance Income/Expense Accounting Policies
Interest and similar income and expense
For all financial instruments measured at amortised cost, interest income or expense is recorded at the effective interest rate, which is the
rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a shorter
period, where appropriate, to the net carrying amount of the financial asset or financial liability. The calculation takes into account all
contractual terms of the financial instrument (for example, prepayment options) and includes any fees or incremental costs that are directly
attributable to the instrument and are an integral part of the effective interest rate, but not future credit losses. Once the recorded value of a
financial asset or a group of similar financial assets has been reduced due to an impairment loss, interest income continues to be recognised
using the original effective interest rate applied to the new carrying amount.
Fair value change on foreign exchange derivatives
The Group undertakes transactions denominated in foreign currencies and exposure to movements in foreign currency arises from these
activities. The Group uses forward foreign exchange contracts to manage these exposures. These derivatives are recorded at their fair value
with mark-to-market fair value movements flowing through fair value gain/(loss) on foreign exchange derivatives in the profit or loss. A
portion of the underlying hedged future sale or purchase transactions have not yet been recognised by the Group. For this portion, no
corresponding offsetting net gain/(loss) on foreign denominated items has been recognised.

56
|
PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
|
57
Refer to
Accounting
Policies
– page 57.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
7 INCOME TAXES
A. Income tax recognised in profit or loss
2022 2021
$000 $000
Current tax benefit/(expense)
Current year
(10,159)

(7,395)
Adjustments for prior years 91 443
(10,068) (6,952)
Deferred tax benefit/(expense)
Origination and reversal of temporary differences
1,888

727
Adjustments for prior years (91) (468)
1,797 259
Income tax benefit/(expense)
(8,271) (6,693)
Reconciliation
Profit from continuing operations before income tax
32,557

29,413
Income tax using the Company's tax rate (28%) (9,116) (8,236)
Non-deductible expenditure
(79)

(478)
Non-assessable income 211 1,784
T
ax credits 686 285
Over/(under) provided in prior years (3) (25)
Other
30

(23)
Income tax benefit/(expense) (8,271) (6,693)
B. Income tax recognised directly in equity
2022 2021
$000 $000
Deferred tax on movement of actuarial gains/losses on employee benefit plans 706 (2,746)
Current tax on movement of actuarial gains/losses on employee benefit plans
–

52
Income tax benefit/(expense) recognised directly in equity 706 (2,694)
C. Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
ASSETS ASSETS LIABILITIES LIABILITIES NET NET

2022 2021 2022 2021 2022 2021
$000 $000 $000 $000 $000 $000
Property, plant and equipment 706 565 – – 706 565
Intangible assets – – (1,541) (2,277) (1,541) (2,277)
Right-of-use assets – – (26,061) (28,298) (26,061) (28,298)
Lease liabilities 27,026 29,125 – – 27,026 29,125
Employee benefits 7,173 4,762 – – 7,173 4,762
Provisions 3,373 4,296 – – 3,373 4,296
Deferred tax asset/(liability) 38,278 38,748 (27,602) (30,575) 10,676 8,173
7 INCOME TAXES (CONTINUED)
C. Recognised deferred tax assets and liabilities (continued)
RECOGNISED IN RECOGNISED IN

REC
OGNISED
O
THER
REC
OGNISED
O
THER

BALANCE IN PROFIT COMPREHENSIVE BALANCE IN PROFIT COMPREHENSIVE BALANCE
1 JUL 2020 OR LOSS INCOME 30 JUN 2021 OR LOSS INCOME 30 JUN 2022
$000 $000 $000 $000 $000 $000 $000
Property, plant 616 (51) – 565 141 – 706
and equipment
Intangible assets (1,181) (1,096) – (2,277) 736 – (1,541)
R
ight-of-use assets
(29,350)

1,052

–

(28,298)

2,237

–

(26,061)
L
ease liabilities 29,987 (862) – 29,125 (2,099) – 27,026
Employee benefits 6,361 1,147 (2,746) 4,762 1,705 706 7,173
Provisions 4,227 69 – 4,296 (923) – 3,373
10,660 259 (2,746) 8,173 1,797 706 10,676
D.
Unr
ecognised tax losses and temporary differences
At 30 June 2022, the Group has no unrecognised deferred tax assets relating to tax losses and temporary differences (2021: Nil).
E.

I
mputation credits
The Group has $8.1 million imputation credits as at 30 June 2022 (2021: $6.2 million).
Income Tax Accounting Policies
Income tax expense comprises current and deferred taxation and is recognised in profit or loss except to the extent that it relates to items
recognised directly in other comprehensive income or equity, in which case it is recognised directly in other comprehensive income or
equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year, calculated using tax rates enacted or substantively enacted at
the reporting date. Current tax includes any adjustment to tax payable with respect to previous periods. Current tax assets and liabilities are
offset only if certain criteria are met.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the
temporary differences when they reverse, based on the laws that have been enacted or substantially enacted at the reporting date.
Deferred tax is not recognised for:
– taxable temporary differences arising on the initial recognition of goodwill;
–
t
emporary differences relating to subsidiaries, associates and jointly controlled entities to the extent that the Group is able to control the
timing of the reversal of the temporary differences and it is probable they will not reverse in the foreseeable future;
–

t
emporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects
neither accounting nor taxable profit or loss.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary
differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be recognised.
Deferred tax assets and liabilities are offset only if certain criteria are met.

58
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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59
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
8 EARNINGS PER SHARE AND NET TANGIBLE ASSETS
A. Earnings per share (EPS)
The calculation of EPS is based on the following profit figures and number of authorised shares.
WEIGHTED AVERAGE
ISSUED ORDINARY SHARES NUMBER OF ORDINARY SHARES
2022 2021 2022 2021

000 000 000 000
Issued ordinary shares at 1 July 75,484 75,484 75,484 75,484
Balance at 30 June 75,484 75,484 75,484 75,484
There are no dilutive shares or options (2021: Nil).
2022 2021
$000 $000
Profit (net of tax) attributable to Shareholders of the Company 24,286 22,713
Profit from continuing operations (net of tax) attributable to Shareholders of the Company
24,286

22,720
2022 2021
$ $
Basic & diluted EPS 0.322 0.301
Basic & diluted EPS – continuing operations
0.322

0.301
B.
N
et tangible assets (NTA)
The calculation of NTA per share, which is a required NZX disclosure, is based on the following NTA figure and the Company's issued ordinary
shares at the end of the period.
2022 2021
$000 $000
Total assets 509,952 453,034
Total liabilities
(337,268)

(279,496)
less Intangible assets (12,101) (15,663)
less Deferred tax asset
(10,676)

(8,173)
Net tangible assets 149,907 149,702
2022 2021
$ $
NTA per issued ordinary shares at the end of period 1.986 1.983
Earnings Per Share Accounting Policies
The Group presents basic and diluted EPS data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to
shareholders by the weighted average number of shares outstanding during the period. Diluted EPS is determined by adjusting the profit or
loss attributable to shareholders and the number of shares outstanding to include the effects of all potential dilutive shares.
9 CASH AND FINANCING FACILITIES
2022 2021

N
OTE

$000 $000
Cash and cash equivalents 4,676 3,367
Current financing facilities 9(A) (7,500) (9,900)
T
erm financing facilities
9(
A)
(30,000)

–
Net interest-bearing (debt)/cash and cash equivalents (32,824) (6,533)
Go livestock receivables 12 65,405 45,869
Net interest-bearing (debt)/cash and cash equivalents after adjusting for Go livestock receivables 32,581 39,336
A. Financing facilities
During the year, the Company amended and extended its syndicated bank facility. The amended facility, which commenced on 13 December
2021, provides the following:
–

T
erm debt facility of $60.00 million maturing on 6 December 2024. This facility had $30.00 million drawn at 30 June 2022.
–

W
orking capital facilities of up to $70.00 million maturing on 6 December 2024 (subject to an annual Clean Down).
The syndicated facilities fund the general corporate activities of the Group, the seasonal fluctuations in working capital and 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, including
maximum permissible ratios for debt leverage and operating leverage, together with limits for Go livestock 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 30 June 2022 (2021:
$6.53 million).
–
O
verdraft facilities of $3.00 million.
–
Guarant
ee, letters of credit and trade finance facilities of $3.58 million.

60
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
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61
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
10 DERIVATIVE FINANCIAL INSTRUMENTS
The Group uses forward foreign exchange contracts to manage its exposure to foreign currency fluctuations. In accordance with the Group's
treasury policy, the Group does not hold any of these derivative instruments for trading purposes.
2022 2021
$000 $000
Derivative assets held for risk management
Current 1,547 843
Non-
current
17

–
1,564 843
Derivative liabilities held for risk management
Current (1,009) (242)
Non-
current
(152)

(143)
(1,161) (385)
Net derivative asset/(liability) held for risk management 403 458
Derivative Financial Instruments Accounting Policies
Derivative financial instruments are recognised initially at fair value and transaction costs are expensed immediately. Subsequent to initial
recognition, derivative financial instruments are stated at fair value, and changes therein are generally recognised in profit or loss. The fair
value of forward exchange contracts is based on broker quotes.
Where the Group enters into derivative transactions, these agreements do not meet the criteria for offsetting in the consolidated statement
of financial position. The fair value amounts recognised in the consolidated statement of financial position are recorded on a gross basis.
The Group does not currently apply hedge accounting.
11 TRADE AND OTHER RECEIVABLES
2022 2021
$000 $000
Accounts receivable due from unrelated parties 141,689 124,364
Accounts receivable due from related parties – 3
Gr
oss accounts receivable
141,689

124,367
less
Provision for impaired debtors
(2,023)

(2,895)
Net accounts r
eceivable 139,666 121,472
Contract assets 3,132 2,083
less
Provision for impaired contract assets
(119)

(356)
O
ther receivables
22,217

22,631
P
repayments 5,440 2,341
Trade and other receivables 170,336 148,171
Analysis of movements in provisions for impaired debtors & contract assets
Balance at beginning of year
(3,251)

(4,025)
Movement in provision 1,109 774
Balance at end of year
(2,142) (3,251)
The ageing status of the accounts receivable at the reporting date is as follows:

TOTA L TOTA L
DEBTORS PROVISION DEBTORS PROVISION
2022 2022 2021 2021

$000 $000 $000 $000
Not past due 133,914 (205) 114,336 (824)
Past due 1– 30 days 5,450 (5) 5,636 (14)
P
ast due 31– 60 days 370 (22) 894 (27)
Past due 61– 90 days 182 (18) 717 (59)
P
ast due 90 plus days 1,773 (1,773) 2,784 (1,971)
141,689 (2,023) 124,367 (2,895)

62
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PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
|
63
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
12 GO LIVESTOCK RECEIVABLES
The Group holds receivables in respect of its Go range of livestock products. The Go range allows farmers to defer payment for the purchase of
livestock. The counterparty farmer to the Go product is fully exposed to the risks and rewards of ownership of the livestock. To mitigate credit risk,
the Group retains legal title to the livestock until its sale. Fee income received in respect of the Go livestock receivables is recognised by the Group
as interest income over the respective contract period and is included within operating revenue (refer to Note 1 Operating Revenue). Accrued
interest income in respect of the Go livestock receivables is included within Other Receivables (refer to Note 11 Trade and Other Receivables) and
amounts to $1.75 million as at the balance date (2021: $1.20 million).
2022 2021
$000 $000
Go livestock receivables – Current 65,921 46,011
Go livestock receivables – Non Current
704

–
66,625 46,011
less Provision for impairment – Go livestock receivables (516) (142)
66,109 45,869
Analysis of movements in provisions for impaired Go livestock receivables
Balance at beginning of year
(142)

–
M
ovement in provision
(374)

(142)
Balance at end of y
ear
(516) (142)
The ageing status of the Go livestock receivables at the reporting date is as follows:
GO LIVESTOCK GO LIVESTOCK
RECEIVABLES PROVISION RECEIVABLES PROVISION
2022 2022 2021 2021

$000 $000 $000 $000
Not past due 66,304 (195) 45,884 (15)
Past due 1 – 30 days
16

(16)

17

(17)
Past due 31 – 60 days 9 (9) – –
Past due 61 – 90 days
3

(3)

2

(2)
Past due 90 plus days 293 (293) 108 (108)
66,625 (516) 46,011 (142)
Trade and Other Receivables and Go Livestock Receivables Accounting Policies
Recognition and measurement
A receivable without a significant financing component is initially measured at the transaction price and classified as financial assets
measured at amortised cost. Accounts receivable includes accrued interest.
Impairment
Specific provisions are maintained to cover identified impaired debtors. Judgement is required in determining the impairment provision.
The Group recognises loss allowances for the expected credit loss (ECL) on Trade and Go livestock receivables. The Group measures loss
allowances for trade and Go livestock receivables at an amount equal to lifetime ECL.
When estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost and
effort. This includes both qualitative and quantitative information and analysis, based on the Group's historical experience and informed
credit assessment, that includes forward-looking information. The Group assumes that the credit risk has increased significantly if it is more
than 60 days past due. The Group considers a financial asset to be in default when the debtor is unlikely to pay its credit obligations to the
Group in full, without recourse by the Group to actions such as realising security (if any is held).
On a monthly basis, the Group via its Credit Committee, assesses whether Trade and Go livestock receivables are credit-impaired. All
individual instruments that are considered significant are subject to this approach. A financial asset is credit-impaired when one or more
events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial
asset is credit-impaired includes observable data such as significant financial difficulty of the debtor.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. The gross
carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its
entirety or a portion thereof.
13 INVENTORY
2022 2021
$000 $000
Merchandise 83,421 64,935
Wool & velvet inventory 20,188 18,199
less
Provision for inventory write down
(1,561)

(1,636)
102,048 81,498
During the year, inventories of $632.25 million (2021: $553.47 million) are included in cost of sales in the profit or loss (refer to Note 2 Cost of Sales).
Included within this amount are write-down of inventories of $1.02 million (2021: $0.55 million) to net realisable value and reversals of write-down
of $0.16 million (2021: $0.10 million).
Inventories Accounting Policies
Raw materials and finished goods are stated at the lower of cost or net realisable value. Cost is determined on a weighted average cost
basis. In the case of manufactured goods, cost includes direct materials, labour and production overheads. Judgement is required in
determining the net realisable value for inventories.

64
|
PGG WRIGHTSON LIMITEDANNUAL REPORT 2022
|
65
Refer to
Accounting
Policies
– page 66.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
14 INTANGIBLE ASSETS
RIGHTS & CAPITAL WORK

SOFT
WARE
TR
ADEMARKS
IN
PROGRESS
T
OTAL
$000 $000 $000 $000
Cost
Balance at 1 July 2020 26,775 1,916 1,498 30,189
A
dditions
–

–

3,278

3,278
T
ransfers
429

–

(429)

–
Disposals
(310) – (1,095) (1,405)
Balance at 30 June 2021 26,894 1,916 3,252 32,062
Balance at 1 July 2021 26,894 1,916 3,252 32,062
Additions – 477 3,234 3,711
T
ransfers 2,382 528 (2,910) –
Disposals (1,804) – – (1,804)
Balance at 30 June 2022 27,472 2,921 3,576 33,969
Amortisation and impairment losses
Balance at 1 July 2020
12,932

1,391

–

14,323
Amortisation for the year 2,156 60 – 2,216
Disposals
(140)

–

–

(140)
Balance at 30 June 2021 14,948 1,451 – 16,399
Balance at 1 July 2021 14,948 1,451 – 16,399
Amortisation for the year 2,843 496 – 3,339
Disposals
(1,254) – – (1,254)
Impairment / (Impairment Reversal) 3,384 – – 3,384
Balance at 30 June 2022 19,921 1,947 – 21,868
Carrying amounts
At 30 June 2021
11,946

465

3,252

15,663
At 30 June 2022 7,551 974 3,576 12,101
Intangible Assets Accounting Policies
Software
Software is a finite life intangible and is recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a
straight line basis over an estimated useful life between 1 and 15 years. The estimated useful life and amortisation method is reviewed at the
end of each annual reporting period and adjusted if appropriate.
Rights
Manufacturing and production rights are finite life intangibles and are recorded at cost less accumulated amortisation and impairment.
Amortisation is charged on a straight line basis over an estimated useful life between 2 and 10 years. The estimated useful life and
amortisation method is reviewed at the end of each annual reporting period and adjusted if appropriate.
Impairment
The carrying amounts of the Group's intangible assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, then the recoverable amount of the asset is estimated. For intangible assets that have indefinite
lives, the recoverable amount is estimated at each reporting date. An impairment loss is recognised in the profit or loss if the carrying
amount of an asset exceeds the recoverable amount. Refer to the accounting policy under Note 5 Impairment and Fair Value Gains/(Losses)
for further explanation.
15 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
Group as a lessee
The Group leases many assets, including:
–

leases of land and buildings fr
om which it conducts operations. These leases range in length from one to fifteen years with various rights of
renewal. Where surplus properties are unable to be exited, the Group subleases these properties where possible and derives sublease revenue
on a short-term temporary basis.
–
leases of mot
or vehicles and forklifts for use by employees, agents and representatives. These leases range for a period of between three and
seven years.
–

leases of office and IT equipment.
These leases are typically for a period of up to four years.
The Group elects not to recognise right-of-use assets and lease liabilities for short-term or low-value leases, such as leases of office and IT
equipment. The Group continues to expense lease payments associated with these leases on a straight-line basis.
A.
Right-of-use assets
PROPERTY VEHICLES TOTAL
NOTE $000 $000 $000
Balance at 1 July 2020 93,226 11,399 104,625
Additions 7,755 5,705 13,460
D
epreciation charge for the period (13,391) (6,288) (19,679)
Reassessments, modifications and terminations 1,590 158 1,748
Net impair
ment reversal / (impairment) 5(B) 910 – 910
Balance at 30 June 2021 90,090 10,974 101,064
Balance at 1 July 2021
90,090

10,974

101,064
A
dditions
648

6,733

7,381
D
epreciation charge for the period
(14,083)

(5,924)

(20,007)
R
eassessments, modifications and terminations
3,253

688

3,941
Net impair
ment reversal / (impairment)
5(B)

695

–

695
B
alance at 30 June 2022
80,603

12,471

93,074
B
. Lease liabilities
PROPERTY VEHICLES TOTAL
$000 $000 $000
Balance at 1 July 2020 95,347 11,557 106,904
Additions, reassessments, modifications and terminations
9,553

5,860

15,413
I
nterest on lease liabilities
3,633

403

4,036
L
ease payments
(15,719)

(6,616)

(22,335)
B
alance at 30 June 2021
92,814

11,204

104,018
Balance at 1 July 2021

92,814

11,204

104,018
A
dditions, reassessments, modifications and terminations
3,963

7,412

11,375
I
nterest on lease liabilities
3,356

429

3,785
L
ease payments
(16,358)

(6,301)

(22,659)
B
alance at 30 June 2022
83,775

12,744

96,519
A maturit
y analysis of lease liabilities is included in Note 19 Financial Instruments – Fair Values and Risk Management.