PGW Deliver Positive Trading Performance in Volatile Market

PGG Wrightson Ltd | NZX Announcement
15 AUGUST 2023
PGW Delivers Positive Trading Performance in
Volatile Market
GROUP PERFORMANCE
PGG Wrightson Limited
1
(PGW) today announced its results for the financial year ended 30 June 2023.
Financial highlights for the year to 30 June 2023 included:
❖ Operating EBITDA
2
of $61.2 million (down $6.0 million or 9% on prior financial year)
❖ Net profit after tax (NPAT) of $17.5 million (down $6.8 million or 28% on prior financial year)
❖ Revenue of $975.7 million (up $23.0 million or 2% on prior financial year)
❖ Fully imputed final dividend of 10 cents per share (22 cents per share for full year)
❖ Second-strongest trading performance for the business since the PGW Seeds divestment (bettered
only by last year’s record result)
PGW Acting Chair, Mr U Kean Seng said “Against a challenging backdrop, PGW delivered strong
financial results for the financial year. Although Operating EBITDA of $61.2 million was down $6.0
million (9 per cent) and NPAT of $17.5 million was down $6.8 million (28 per cent), revenue grew to
$975.7 million and was up $23.0 million (2 per cent) compared to the prior year. These results were
realised with margins broadly in line with the comparative period. This is the second-strongest trading
performance for the business in recent years and bettered only by last year’s record result.
The resilient performance of PGW in volatile market conditions is perhaps the most pleasing aspect of
the result. Strong operating performance was generated by most business units with Livestock, Wool,
and Water all experiencing solid demand. Rural Supplies and Fruitfed Supplies again experienced a
standout performance. The exception was our Real Estate business which continues to operate in
difficult market conditions.

$61.2m • $17.5m • 10 cents
Operating EBITDA
•
Net Profit After Tax
•
Per Share, Fully Imputed
Final Dividend

PGG Wrightson Ltd | NZX Announcement
Macro trading conditions for the year have been volatile with increasing input costs, inflationary
pressures, and falling commodity returns for our clients., A wet and cold spring delivered frosts which
affected a number of crops. Two cyclones through late summer also resulted in significant crop and
rural infrastructure damage in the North Island.
In the context of these market conditions, we are heartened by the performance of the business and
what has been achieved this financial year. We are proud of the way our team responded to the
demands experienced in their regions and the extraordinary efforts of many in the way they supported
each other, our clients, and their communities in need.
The Board has declared a fully imputed final dividend of 10 cents per share. The dividend will be paid
on 3 October 2023 to shareholders on PGW’s share register as at 5pm on 15 September 2023. This
will effectively bring the total fully imputed dividends for the year up to 22 cents per share.”
Retail & Water Group
PGW CEO, Stephen Guerin said, “The Retail & Water business incorporates Rural Supplies, Fruitfed
Supplies, Water, and Agritrade. Retail & Water’s Operating EBITDA was an impressive $54.1 million
and up $1.6 million on the prior year (or 3 per cent). Revenue of $785.3 million, was up $24.0 million
or 3 per cent.
This financial year has been another record year for our Retail & Water businesses. Increased sales
were recorded in the animal health, fencing, general merchandise, and horticultural categories.
We transacted increased business volumes with the same level of staff, which is something we are
very proud of and testament to the commitment of our team members.
Our clients appreciate the superior technical ability of our people who are backed by our dedicated
Research and Development team. We will continue to build on this point of difference to ensure we
maintain and increase our market share.
Global supply chain disruptions following COVID-19 caused us to carry higher levels of inventory to
ensure we could provide our clients with the right products at the right time. Elevated inventory levels
caused some challenges with storage and working capital management. As international shipping
delays are easing there is more certainty regarding deliveries. We have adjusted inventory levels given
that we do not need to carry the same quantities of buffer stock as was considered necessary in the
prior year.
Rural Supplies recorded its best performance ever exceeding last year’s record result, with strong sales
across a range of categories. We continued to grow market share and delivered an outstanding result
in a shrinking market. To achieve growth on last year is an exceptional result given the climatic
challenges and demonstrates the strength of our Rural Supplies business.
Our people are passionate and motivated to go the extra mile for our hardworking clients. We are
winning new business and seeking opportunities with key accounts, in animal health, forestry, and the
ever-changing landscape of our traditional business.
The wet spring contributed to additional Ag chem sales in our Fruitfed Supplies winery and horticultural
merchandise business. Our market share also increased in the vegetable sector which is an important
area we have targeted for growth.
The damage caused by spring frosts and floods across parts of the North Island and the impacts from
Cyclone Gabrielle in the Tairāwhiti and Hawke’s Bay regions will impact the Fruitfed Supplies business
over the next few seasons. However, the long-term outlook for horticulture remains positive.
Our Fruitfed Supplies strategic plan focuses on adapting to changes in the industry, capitalising on
category growth, and how we can proactively and strategically adapt to land use change.
The Water business’ strategic focus is to add value to our clients’ businesses by growing service
delivery and the best technical advice. We are the market leader with the most technically skilled
workforce as verified by Valley and the only current Valley Certified Field Technicians and Certified
Valley Designers in the country.

PGG Wrightson Ltd | NZX Announcement
Our Sales and Design crew are actively targeting irrigator upgrade options and enquiries for infill
irrigation are increasing, specifically where clients see the benefit of fixed grid solutions.
Agritrade, our wholesale business division, celebrated its 10-year anniversary in September 2022 and
showed good growth over this period. This past financial year has seen another lift in sales revenue
with growth across horticultural inputs and animal health products. Our range continues to expand as
suppliers look to us to supply product given our large logistics function and growing reach to merchants
and vets across the country.
Agency Group
Our Agency group incorporates the Livestock, Wool, and Real Estate businesses. Operating EBITDA
was $16.1 million and was down $5.8 million on the prior year’s strong result (26 per cent). Revenue
was $188.8 million, which was broadly in line with the prior year’s result, down just $0.6 million.
Our Livestock business achieved a solid performance in a difficult market. Whilst there were challenges
through softer sheep pricing, significant wet weather events in the North Island and declining tallies in
some stock lines, there were also positive outcomes for the year. The wet conditions contributed to
greater pasture growth than normal which created unseasonal trading during the summer and autumn
seasons.
Revenues received for cattle were robust, with higher prices received compared to the prior year. This
was driven by healthy pricing achieved throughout the year which was assisted by abundant feed and
increases in export volumes. Sheep pricing was below expectations throughout much of the year as
demand was slow to recover in our key export markets.
GO-STOCK, our grazing programme which frees up capital in order that farmers can invest in other
areas of their businesses, achieved another record year with the highest balances recorded in terms
of values and tallies. GO-BEEF, including the new GO-BEEF PRIME offering, and GO-STOCK DAIRY
performed well. During FY23, two significant milestones were reached with over 350,000 cattle and
2.3 million lambs purchased through GO-STOCK since its launch during the 2016 financial year.
The PGW Velvet business delivered a strong performance, achieving its best result ever. This was
achieved through increases in volumes traded with South Korean health food customers. China’s
extended shutdown caused slower sales which reduced prices on the prior year. With all velvet stock
sold and exported, it remains a profitable income stream for deer clients and continues to grow in both
production and quality.
The Genetics business achieved some outstanding results with its bull sales. The team is investigating
the value add of a “beef over dairy” strategy which will benefit dairy farmers seeking genetics that
shorten gestation, maximise ease of birth, and increase profitability of cattle.
Overall, the Wool business had a solid year with total bales procured into stores in line with last year.
Wool growers continue to be negatively impacted by cross-bred wool prices. PGW Wool had another
steady fine wool season, growing market share supported by high value long-term merino contracts
with growers.
The real estate market has experienced one of the toughest years in some time with high interest rates,
stricter regulatory requirements, softening commodity prices, and uncertainty regarding the outcome of
the general election in October 2023 all contributing to negative sentiment.
This was reflected in operating results for PGW’s Real Estate with the decline in market activity leading
to significantly fewer sales being made than in the prior financial year. On the positive side, we
maintained our market share and increased share in some regions.”

Cashflow and Debt
Mr U reported that “PGW recorded operating cash flows during the year of $25.5 million, which was
$1.8 million higher than the prior year, impacted by higher income tax payments on last year’s
exceptional result together with higher funding costs.

PGG Wrightson Ltd | NZX Announcement
PGW invested in working capital during the year, including implementation of our strategy to grow our
GO-STOCK receivables book to $74.0 million at 30 June 2023, an increase of $7.9 million or 12.0 per
cent from 30 June 2022.
Capital expenditure of $17.1 million was $8.4 million higher than 30 June 2022. This increase was
driven by the significant investment in our IT Systems Business Improvement Programme (which
includes both operating expenditure and capital expenditure components) and is due to go-live in the
2024 financial year.
Our net interest-bearing debt was $65.3 million as at 30 June 2023, an increase of $32.5 million from
the prior comparative period.”

Outlook
Mr U noted, “There is a significant degree of volatility in the global economy and international markets
currently. New Zealand, like many of our key trading partner nations are committed to taming inflation
with Central banks lifting interest rates. The effect of this monetary policy is being felt with inflation
levels beginning to trend lower but with elevated interest rates raising borrowing costs.
Growth in emerging economies is forecast to increase faster than developed countries. The longer-
term outlook is positive with the government projecting steady growth for New Zealand primary exports
and revenue projected to reach $62 billion by 2027. As a market leader in the sector, PGW is in a
strong position to assist our clients grow their businesses as they respond to export demand.
Our country’s farmers and growers are renowned for their resourcefulness and their pioneering spirit
continues with creating new solutions to adapt to climate change and become more efficient.
Regardless of the regulatory framework that is ultimately adopted, the primary sector will adapt and
continue to enhance its social licence to operate. PGW is on a journey to reduce its emissions and has
committed to a 30% reduction target by FY30 from our FY21 baseline. This emissions target is part of
the broader Sustainability Strategy to embed sustainability within our operations and ensure PGW
remains future focused.
It is too soon to forecast trading performance for the year, but we hope to be better placed to provide
guidance for FY24 following the start of the important spring trading period at our Annual Shareholders’
Meeting in October 2023. In the meantime, we do note the following positive signals:
❖ PGW continues to pick up market share and we see this in key categories and in new client enquiry
and business.
❖ Maize orders for the coming spring are strong and tracking ahead of the same time last year.
❖ The viticulture sector had a good harvest and New Zealand wines are in demand internationally with
new plantings planned and Fruitfed Supplies well placed to support the growers.
While we are well positioned operationally as we move into the current financial year, we see continuing
volatility and softening commodity prices for our clients and even more challenging macro market
conditions out over the short to medium term than experienced in recent years.”

All media enquiries to:
Julian Daly
General Manager Corporate Affairs / Company Secretary
PGG Wrightson Limited
Mobile: +64 27 553 3373
Email: companysecretary@pggwrightson.co.nz
Registered Office:
PGG Wrightson Limited
1 Robin Mann Place, Christchurch Airport
Christchurch 8053, New Zealand

PGG Wrightson Ltd | NZX Announcement
Phone: 0800 10 22 76 / +64 3 477 4520
Website: pggwrightson.co.nz

1
All references to PGG Wrightson Limited refer to the company, its subsidiaries and interests in associates and
jointly controlled entities.
2
Operating EBITDA: Earnings before net interest and finance costs, income tax, depreciation, amortisation, the
results from discontinued operations, impairment and fair value adjustments and non-operating items.
PGW has used non-GAAP profit measures when discussing financial performance in this document. For a
comprehensive discussion on the use of non-GAAP profit measures, please refer to the policy “Non-GAAP
Accounting Information” available on our website
(www.pggwrightson.co.nz)

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Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023


Results for announcement to the market
Name of issuer PGG Wrightson Limited
Reporting Period 12 months to 30 June 2023
Previous Reporting Period 12 Months to 30 June 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$975,692 +2.4%
Total Revenue $976,194 +2.4%
Net profit/(loss) from
continuing operations
$17,518 -27.9%
Total net profit/(loss) $17,518 -27.9%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.10
Imputed amount per Quoted
Equity Security
$0.039
Record Date 15/09/2023
Dividend Payment Date 03/10/2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.859 $1.986
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the accompanying market commentary and
consolidated financial statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Julian Daly
Contact person for this
announcement
Julian Daly
Contact phone number 027 553 3373
Contact email address jdaly@pggwrightson.co.nz
Date of release through MAP

15/08/2023

Audited financial statements accompany this announcement.

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Template
Distribution Notice

Updated as at June 2023



Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)


Section 1: Issuer information
Name of issuer PGG Wrightson Limited
Financial product name/description Ordinary shares
NZX ticker code PGW
ISIN (If unknown, check on NZX
website)
NZREIE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 15/09/2023
Ex-Date (one business day before the
Record Date)
14/09/2023
Payment date (and allotment date for
DRP)
03/10/2023
Total monies associated with the
distribution
1

$7,548,408.30000000
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.13888889
Gross taxable amount
3
$0.13888889
Total cash distribution
4
$0.10000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01764706
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed

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

Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.03888889
Resident Withholding Tax per
financial product
$0.00694444
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP

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

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

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

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Julian Daly
Contact person for this
announcement
Julian Daly
Contact phone number 027 553 3373
Contact email address jdaly@pggwrightson.co.nz
Date of release through MAP

15/08/2023






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

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Key Financial Disclosures
Ngā Whakapuakanga Pūtea Hira
Consolidated Financial Statements for the year ended 30 June 2023
Ngā Tauākī ā-Pūtea Tōpū mō te tau i mutu i te 30 Hune 2023
PGG WRIGHTSON LIMITED

Cover image: PGG Wrightson Salesperson, Real Estate,
Trevor Kenny, and Kay and Martyn Watkins discuss the
sale of their dairy farm which resulted in a successful
sale, near Tirau, Waikato.
PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
DIRECTORS’ RESPONSIBILITY STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
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 2023 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 1 to 40 for the year
ended 30 June 2023.
The consolidated financial statements contained on pages 1 to 40 have been authorised for
issue on 14 August 2023.
For and on behalf of the Board.
U Kean Seng Sarah Brown
Chair Director and Audit Committee Chair

KEY FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Hira
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 30 June 2023
PGG WRIGHTSON LIMITED
|
1
2023 2022
NOTE $000 $000
Operating revenue 1 975,692 952,700
Cost of sales 2 (722,849) (704,181)
Gross profit 252,843 248,519
Other income 502 334
Employee expenses (137,561) (132,874)
Other operating expenses 3 (54,590) (48,826)
Operating EBITDA
27(C) 61,194 67,153
Non-operating gains/(losses) 4 327 699
Impairment and fair value gains/(losses) 5 51 (2,182)
Depreciation and amortisation expense (28,063) (28,024)
EBIT 27(C) 33,509 37,646
Net interest and finance costs 6 (9,573) (5,089)
Profit before income tax 23,936 32,557
Income tax expense 7 (6,418) (8,271)
Profit net of income tax 17,518 24,286
Net profit after tax attributable to Shareholders of the Company 17,518 24,286
Basic & diluted earnings per share (EPS)
2023 2022
NOTE $ $
Basic & diluted EPS 8 0.232 0.322
The accompanying notes form an integral part of these consolidated financial statements.

KEY FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Hira
2
|
PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2023
2023 2022
NOTE $000 $000
Net profit after tax attributable to Shareholders of the Company 17,518 24,286
Other comprehensive income/(loss)
Items that will never be reclassified to profit or loss
Changes in fair value of equity instruments 28 9 7
Remeasurements of defined benefit asset/liability 18 1,059 (2,522)
Tax on remeasurements of defined benefit asset/liability 7 (297) 706
Total other comprehensive income/(loss) for the period 771 (1,809)
Total comprehensive income for the period attributable to Shareholders of the Company 18,289 22,477
The accompanying notes form an integral part of these consolidated financial statements.

KEY FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Hira
PGG WRIGHTSON LIMITED
|
3
PGG WRIGHTSON LIMITED
SEGMENT REPORT
For the year ended / as at 30 June 2023
A. Operating segments
The Group has two primary operating segments, Agency and Retail
& Water, which are the Group's strategic divisions. These operating
segments operate within New Zealand.
The two operating segments offer different products and services,
and are managed separately because they require different skills,
technology and marketing strategies. Within each segment, further
business unit analysis may be provided to management where there
are significant differences in the nature of activities. The Chief Executive
Officer or Chairman of the Board reviews internal management reports
on each strategic business unit on at least a monthly basis.
The Group's segments are described below:
– 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.
– Other (non-operating): 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 cost 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 hardware, support, licence and other costs are allocated on a per
user basis.
– Property 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. Geographical 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 2023
KEY FINANCIAL DISCLOSURES
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Ngfi Whakapuakanga Pfltea Hira
4
|
PGG WRIGHTSON LIMITED
C. Operating segment information
AGENCY RETAIL & WATER OTHER TOTA L
(NON OPERATING)
2023 2022 2023 2022 2023 2022 2023 2022
$000 $000 $000 $000 $000 $000 $000 $000
Sales revenue 87,556 75,061 765,661 746,093 1,286 1,327 854,503 822,481
Commission revenue 93,692 109,208 92 76 95 89 93,879 109,373
Construction contract revenue – – 18,031 14,235 – – 18,031 14,235
Interest revenue on Go receivables 6,573 4,254 – – – – 6,573 4,254
Interest revenue on overdue debtor accounts 523 438 1,151 556 20 (26) 1,694 968
Sublease income 459 410 363 348 190 631 1,012 1,389
Total external operating revenues 188,803 189,371 785,298 761,308 1,591 2,021 975,692 952,700
Operating EBITDA 16,068 21,844 54,129 52,495 (9,003) (7,186) 61,194 67,153
Non–operating gains/(losses) 335 695 83 133 (91) (129) 327 699
Impairment and fair value gains/(losses) – (2,970) – 691 51 97 51 (2,182)
Depreciation and amortisation expense (8,787) (8,521) (16,267) (16,067) (3,009) (3,436) (28,063) (28,024)
EBIT 7,616 11,048 37,945 37,252 (12,052) (10,654) 33,509 37,646
Net interest and finance costs (3,857) (2,843) (3,779) (1,665) (1,937) (581) (9,573) (5,089)
Profit/(loss) before income tax 3,759 8,205 34,166 35,587 (13,989) (11,235) 23,936 32,557
Income tax benefit/(expense) (1,170) (2,197) (9,707) (10,194) 4,459 4,120 (6,418) (8,271)
Profit/(loss) net of income tax 2,589 6,008 24,459 25,393 (9,530) (7,115) 17,518 24,286
Net profit/(loss) after tax 2,589 6,008 24,459 25,393 (9,530) (7,115) 17,518 24,286
Total segment assets 202,490 206,204 263,221 280,458 30,817 23,290 496,528 509,952
Total segment liabilities (82,866) (101,724) (159,709) (180,332) (84,692) (55,212) (327,267) (337,268)
Capital expenditure
(additions to non–current assets) 6,227 5,653 6,232 7,430 12,380 3,571 24,839 16,654
The accompanying notes form an integral part of these consolidated financial statements.

KEY FINANCIAL DISCLOSURES
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Ngā Whakapuakanga Pūtea Hira
PGG WRIGHTSON LIMITED
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5
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2023
2023 2022
NOTE $000 $000
Cash flows from operating activities
Cash was provided from:
Receipts from customers 979,878 913,260
Dividends received 5 5
Interest received 8,743 5,321
988,626 918,586
Cash was applied to:
Payments to suppliers and employees (940,906) (884,560)
Interest paid (4,565) (957)
Interest paid on lease liabilities (3,800) (3,786)
Income tax paid (13,846) (5,623)
(963,117) (894,926)
Net cash inflow/(outflow) from operating activities 25,509 23,660
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment 579 1,053
Proceeds from disposal of investments 9 7
588 1,060
Cash was applied to:
Purchase of property, plant and equipment (6,453) (5,926)
Purchase of intangibles (10,723) (2,881)
Advance to jointly controlled entity (170) –
(17,346) (8,807)
Net cash inflow/(outflow) from investing activities (16,758) (7,747)
Cash flows from financing activities
Cash was provided from:
Increase in external borrowings and working capital debt 9 32,460 30,000
32,460 30,000
Cash was applied to:
Dividends paid to shareholders (21,712) (23,331)
Repayment of external borrowings and bank overdraft – (2,400)
Repayment of principal portion of lease liabilities (19,532) (18,873)
(41,244) (44,604)
Net cash inflow/(outflow) from financing activities (8,784) (14,604)
Net increase/(decrease) in cash held (33) 1,309
Opening cash 4,676 3,367
Cash and cash equivalents 9 4,643 4,676
The accompanying notes form an integral part of these consolidated financial statements.

KEY FINANCIAL DISCLOSURES
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Ngā Whakapuakanga Pūtea Hira
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PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
RECONCILIATION OF PROFIT AFTER TAX
WITH NET CASH FLOW FROM OPERATING ACTIVITIES
For the year ended 30 June 2023
2023 2022
$000 $000
Net profit after tax 17,518 24,286
Add/(deduct) non–cash/non–operating items:
Depreciation and amortisation 28,063 28,027
Impairment and fair value losses/(gains) (51) 2,182
Bad debts written off (net) 451 (633)
Loss/(profit) on sale of assets and investments, and lease terminations (382) (763)
Foreign exchange loss/(gain) (22) (9)
Deferred tax expense/(benefit) 1,658 (1,797)
Defined benefit expense/(gain) 9 (85)
Other non–cash/non–operating items 71 108
Add/(deduct) movement in working capital items:
Change in inventories (5,613) (20,766)
Change in accounts receivable, Go livestock receivables and prepayments 17,314 (41,909)
Change in trade creditors, provisions and accruals (21,533) 26,799
Change in other current assets/liabilities (2,878) 3,776
Add/(deduct) movement in taxation items:
Change in income tax payable/receivable (9,096) 4,444
Net cash flow from operating activities 25,509 23,660
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
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Ngā Whakapuakanga Pūtea Hira
PGG WRIGHTSON LIMITED
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7
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
2023 2022
NOTE $000 $000
ASSETS
Current
Cash and cash equivalents 9 4,643 4,676
Short–term derivative assets 10 367 1,547
Trade and other receivables 11 144,656 170,336
Go livestock receivables 12 71,453 65,405
Income tax receivable 1,186 –
Inventories 13 107,533 102,048
Other current assets 3,546 3,130
Total current assets 333,384 347,142
Non–current
Long–term derivative assets 10 – 17
Deferred tax asset 7 8,721 10,676
Investments in equity accounted investees 320 102
Advance to equity accounted investees 170 –
Go livestock receivables 12 2,570 704
Other investments 340 479
Intangible assets 14 20,214 12,101
Right–of–use assets 15 84,068 93,074
Property, plant and equipment 16 46,741 45,657
Total non–current assets 163,144 162,810
Total assets
496,528 509,952
LIABILITIES
Current
Working capital debt 9 19,960 7,500
Short–term derivative liabilities 10 888 1,009
Accounts payable and accruals 17 164,107 189,290
Short–term lease liabilities 15 18,586 18,229
Income tax payable – 7,910
Total current liabilities 203,541 223,938
Non–current
Long–term debt 9 50,000 30,000
Long–term derivative liabilities 10 112 152
Long–term lease liabilities 15 69,769 78,290
Long–term provisions 17 2,769 2,762
Defined benefit liability 18 1,076 2,126
Total non–current liabilities 123,726 113,330
Total liabilities 327,267 337,268
EQUITY
Share capital 28 372,318 372,318
Reserves 28 16,158 12,973
Retained earnings/(deficit) 28 (219,215) (212,607)
Total equity attributable to Shareholders of the Company
169,261 172,684
Total liabilities and equity 496,528 509,952
The accompanying notes form an integral part of these consolidated financial statements.

PGG WRIGHTSON LIMITED
8
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PGG WRIGHTSON LIMITED
PGG Wrightson and Fruitfed Supplies Trainee Technical
Field/Horticultural Representative, Kiri Matthews, crop
checking an annual clover paddock at Balle Brothers,
near Matamata, Waikato.
Additional Financial Disclosures
Ngā Whakapuakanga Pūtea Tāpiri
Including Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Tae atu ki Ngā Pitopito Kōrero ki Ngā Tauākī Pūtea Tōpū mō te tau i mutu i te 30 Hune 2023

PGG WRIGHTSON LIMITED
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9
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
Additional Financial Disclosures
1 OPERATING REVENUE
2023 2022
$000 $000
Revenue from contracts with customers
Sales revenue 854,503 822,481
Commission revenue 93,879 109,373
Construction contract revenue 18,031 14,235
Other operating revenue
Interest revenue on Go livestock receivables 6,573 4,254
Interest revenue on overdue debtor accounts 1,694 968
Sublease income 1,012 1,389
975,692 952,700
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.
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 the Group's 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 sales with terms of 12 months or less.
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 overdue receivables 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.

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PGG WRIGHTSON LIMITED
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
2 COST OF SALES
20232022
N
OTE$000$000
Depreciation and amortisation 173 189
Employee benefits (including commissions) 24,654 32,541
I
nventories and consumables
13

671,783

648,001
F
reight
14,92512,438
O
ther11,31411,012
722,849704,181
3 OTHER OPERATING EXPENSES
20232022
$000$000
Audit of annual financial statements of the Company by EY 336 266
Other Advisory Services provided by EY:
Facilitation of sustainability materiality assessment
13 21
Cloud computing project assistance – 18
Emplo
yee incentive schemes advisory 30 –
Dir
ectors' fees
715 565
D
onations 34 7
Increase/(decrease) in provision for impaired trade receivables, Go livestock receivables and contract assets (252) (1,109)
Net bad debts wr
itten off / (recovered) 703 476
IT & t
elecommunication costs
15,435

13,372
M
arketing 5,359 4,665
Motor vehicle costs 7,555 7,012
T
ravel costs
4,446

2,317
R
ental and operating lease costs
958

901
O
ccupancy costs (excluding rental and operating lease)
5,202

5,672
O
ther staff costs 7,690 7,442
O
ther expenses
6,366 7,201
54,59048,826
4 NON-OPERATING GAINS/(LOSSES)
20232022
$000$000
Gain on sale of property, plant and equipment 382 763
Other non-operating gains/(losses) (55) (64)
327699

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11
ADDITIONAL FINANCIAL DISCLOSURES
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Ng- Whakapuakanga P(tea T-piri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
5 IMPAIRMENT AND FAIR VALUE GAINS/(LOSSES)
2023 2022
$000 $000
Net impairment reversal/(impairment) – Property, plant and equipment – 414
Net impairment reversal/(impairment) – Right-of-use assets – 695
Net impairment reversal/(impairment) – Software Assets – (3,384)
Other fair value gains/(losses) 51 93
51 (2,182)
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.

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PGG WRIGHTSON LIMITED
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
6 NET INTEREST AND FINANCE COSTS
2023 2022
$000 $000
Interest income 485 99
Interest funding expense
Bank interest on loans and overdrafts (4,565) (957)
Bank facility fees (956) (875)
(5,521) (1,832)
Net interest income/(expense) excluding interest on lease liabilities (5,036) (1,733)
Interest on lease liabilities (3,800) (3,786)
Foreign exchange gain/(loss)
Net gain/(loss) on foreign denominated items 300 485
Fair value gain/(loss) on foreign exchange derivatives (1,037) (55)
(737) 430
Net interest and finance income/(expense) (9,573) (5,089)
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. Although the derivatives have not been designated in a hedge relationship, they act as an economic hedge and will offset the
underlying transactions when they occur.

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13
ADDITIONAL FINANCIAL DISCLOSURES
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Ng- Whakapuakanga P(tea T-piri
Refer to
Accounting
Policies
– page 14.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
7 INCOME TAXES
A. Income tax recognised in profit or loss
2023 2022
$000 $000
Current tax benefit/(expense)
Current year (4,633) (10,159)
Adjustments for prior years (126) 91
(4,759) (10,068)
Deferred tax benefit/(expense)
Origination and reversal of temporary differences (1,790) 1,888
Adjustments for prior years 131 (91)
(1,659) 1,797
Income tax benefit/(expense) (6,418) (8,271)
Reconciliation
Profit from continuing operations before income tax 23,936 32,557
Income tax using the Company's tax rate (28%) (6,702) (9,116)
Non-deductible expenditure (232) (79)
Non-assessable income 75 211
Tax credits 576 686
Over/(under) provided in prior years 5 (3)
Other (140) 30
Income tax benefit/(expense) (6,418) (8,271)
B. Income tax recognised directly in equity
2023 2022
$000 $000
Deferred tax on movement of actuarial gains/losses on employee benefit plans (297) 706
Income tax benefit/(expense) recognised directly in equity (297) 706
C. Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
ASSETS ASSETS LIABILITIES LIABILITIES NET NET
2023 2022 2023 2022 2023 2022
$000 $000 $000 $000 $000 $000
Property, plant and equipment 512 706 – – 512 706
Intangible assets – – (1,600) (1,541) (1,600) (1,541)
Right-of-use assets – – (23,539) (26,061) (23,539) (26,061)
Lease liabilities 24,739 27,026 – – 24,739 27,026
Employee benefits 5,548 7,173 – – 5,548 7,173
Provisions 3,061 3,373 – – 3,061 3,373
Deferred tax asset/(liability) 33,860 38,278 (25,139) (27,602) 8,721 10,676

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PGG WRIGHTSON LIMITED
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
7 INCOME TAXES (CONTINUED)
C. Recognised deferred tax assets and liabilities (continued)
RECOGNISED IN RECOGNISED IN
RECOGNISED OTHER RECOGNISED OTHER
BALANCE IN PROFIT COMPREHENSIVE BALANCE IN PROFIT COMPREHENSIVE BALANCE
1 JUL 2021 OR LOSS INCOME 30 JUN 2022 OR LOSS INCOME 30 JUN 2023
$000 $000 $000 $000 $000 $000 $000
Property, plant
and equipment 565 141 – 706 (194) – 512
Intangible assets (2,277) 736 – (1,541) (59) – (1,600)
Right-of-use assets (28,298) 2,237 – (26,061) 2,522 – (23,539)
Lease liabilities 29,125 (2,099) – 27,026 (2,287) – 24,739
Employee benefits 4,762 1,705 706 7,173 (1,328) (297) 5,548
Provisions 4,296 (923) – 3,373 (312) – 3,061
8,173 1,797 706 10,676 (1,659) (297) 8,721
D. Unrecognised tax losses and temporary differences
At 30 June 2023, the Group has no unrecognised deferred tax assets relating to tax losses and temporary differences (2022: Nil).
E. Imputation credits
The Group has $6.5 million imputation credits as at 30 June 2023 (2022: $8.1 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;
- temporary 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;
- temporary 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.

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15
ADDITIONAL FINANCIAL DISCLOSURES
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Ng- Whakapuakanga P(tea T-piri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
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
2023 2022 2023 2022
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 (2022: Nil).
2023 2022
$000 $000
Profit (net of tax) attributable to Shareholders of the Company 17,518 24,286
2023 2022
$ $
Basic & diluted EPS 0.232 0.322
B. Net 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.
2023 2022
$000 $000
Total assets 496,528 509,952
Total liabilities (327,267) (337,268)
less Intangible assets (20,214) (12,101)
less Deferred tax asset (8,721) (10,676)
Net tangible assets 140,326 149,907
2023 2022
$ $
NTA per issued ordinary shares at the end of period 1.859 1.986
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.

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PGG WRIGHTSON LIMITED
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
9 CASH AND FINANCING FACILITIES
2023 2022
NOTE $000 $000
Cash and cash equivalents 4,643 4,676
Current financing facilities 9(A) (19,960) (7,500)
Term financing facilities 9(A) (50,000) (30,000)
Net interest-bearing (debt)/cash and cash equivalents (65,317) (32,824)
Go livestock receivables 12 74,023 66,109
Net interest-bearing (debt)/cash and cash equivalents after adjusting for Go livestock receivables 8,706 33,285
A. Financing facilities
The Company has a syndicated facility agreement. On 6 December 2022 the total facility limit was increased by $30.00 million to $160.00 million
through an increase in the available term facility limit to $90.00 million. The syndicated facility provides the following:
– Term debt facilities of up to $90.00 million maturing on 6 December 2024. This facility had $50.00 million drawn at 30 June 2023 (2022: $30.00
million drawn).
– Working capital facilities of up to $70.00 million maturing on 6 December 2024 (subject to an annual Clean Down). This facility had $19.96
million drawn at 30 June 2023 (2022: $7.50 million drawn).
The syndicated facilities fund the general commercial activities of the Group, the seasonal fluctuations in working capital and the Go livestock
receivables. Interest on these syndicated facilities is determined, based on floating rates (i.e. OCR or BKBM plus a margin).
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 $6.77 million as at 30 June 2023 (2022:
$6.58 million).
– Overdraft facilities of $3.00 million. This facility was undrawn at 30 June 2023 (2022: undrawn at 30 June 2022).
– Guarantee, letters of credit and trade finance facilities of $3.77 million.

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ADDITIONAL FINANCIAL DISCLOSURES
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Ng- Whakapuakanga P(tea T-piri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
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.
2023 2022
$000 $000
Derivative assets held for risk management
Current 367 1,547
Non-current – 17
367 1,564
Derivative liabilities held for risk management
Current (888) (1,009)
Non-current (112) (152)
(1,000) (1,161)
Net derivative asset/(liability) held for risk management
(633) 403
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 the 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.

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PGG WRIGHTSON LIMITED
ADDITIONAL FINANCIAL DISCLOSURES
|
Ngā Whakapuakanga Pūtea Tāpiri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
11 TRADE AND OTHER RECEIVABLES
2023 2022
NOTE $000 $000
Accounts receivable due from unrelated parties 119,774 141,689
Accounts receivable due from related parties 24 1 –
Gross accounts receivable 119,775 141,689
less Provision for impaired debtors (2,030) (2,023)
Net accounts receivable 117,745 139,666
Contract assets 3,036 3,132
less Provision for impaired contract assets – (119)
Other receivables 19,771 22,217
Prepayments 4,104 5,440
Trade and other receivables 144,656 170,336
Analysis of movements in provisions for impaired debtors & contract assets
Balance at beginning of year (2,142) (3,251)
Movement in provision 112 1,109
Balance at end of year
(2,030) (2,142)
The ageing status of the accounts receivable at the reporting date is as follows:

TOTA L TOTA L
DEBTORS PROVISION DEBTORS PROVISION
2023 2023 2022 2022
$000 $000 $000 $000
Not past due 109,686 (511) 133,914 (205)
Past due 1 – 30 days 4,772 (11) 5,450 (5)
Past due 31 – 60 days 1,803 (9) 370 (22)
Past due 61 – 90 days 1,222 (46) 182 (18)
Past due 90 plus days 2,292 (1,453) 1,773 (1,773)
119,775 (2,030) 141,689 (2,023)

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ADDITIONAL FINANCIAL DISCLOSURES
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Ng- Whakapuakanga P(tea T-piri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
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 $2.62 million as at the balance date (2022: $1.75 million).
2023 2022
$000 $000
Go livestock receivables – Current 71,829 65,921
Go livestock receivables – Non Current 2,570 704
74,399 66,625
less Provision for impairment – Go livestock receivables (376) (516)
74,023 66,109
Analysis of movements in provisions for impaired Go livestock receivables
Balance at beginning of year (516) (142)
Movement in provision 140 (374)
Balance at end of year
(376) (516)
The ageing status of the Go livestock receivables at the reporting date is as follows:
GO LIVESTOCK GO LIVESTOCK
RECEIVABLES PROVISION RECEIVABLES PROVISION
2023 2023 2022 2022
$000 $000 $000 $000
Not past due 74,171 (148) 66,304 (195)
Past due 1 – 30 days – – 16 (16)
Past due 31 – 60 days – – 9 (9)
Past due 61 – 90 days – – 3 (3)
Past due 90 plus days 228 (228) 293 (293)
74,399 (376) 66,625 (516)
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.

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Ngā Whakapuakanga Pūtea Tāpiri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
13 INVENTORY
2023 2022
$000 $000
Merchandise 93,278 83,421
Wool & velvet inventory 16,246 20,188
less Provision for inventory write down (1,991) (1,561)
107,533 102,048
During the year, inventories of $671.78 million (2022: $648.00 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 $0.75 million (2022: $1.02 million) to net realisable value and reversals of write-down
of $0.57 million (2022: $0.16 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.

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PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
14 INTANGIBLE ASSETS
RIGHTS & CAPITAL WORK
SOFTWARE TRADEMARKS IN PROGRESS TOTAL
$000 $000 $000 $000
Cost
Balance at 1 July 2021 26,894 1,916 3,252 32,062
Additions – 477 3,234 3,711
Transfers 2,382 528 (2,910) –
Disposals (1,804) – – (1,804)
Balance at 30 June 2022 27,472 2,921 3,576 33,969
Balance at 1 July 2022 27,472 2,921 3,576 33,969
Additions 16 200 10,507 10,723
Transfers 2,712 (624) (2,088) –
Disposals – – – –
Balance at 30 June 2023 30,200 2,497 11,995 44,692
Amortisation and impairment losses
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
Balance at 1 July 2022 19,921 1,947 – 21,868
Amortisation for the year 2,143 467 – 2,610
Transfers 625 (625) – –
Disposals – – – –
Balance at 30 June 2023 22,689 1,789 – 24,478
Carrying amounts
At 30 June 2022 7,551 974 3,576 12,101
At 30 June 2023 7,511 708 11,995 20,214
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.

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Ngā Whakapuakanga Pūtea Tāpiri
Refer to
Accounting
Policies
– page 23.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
15 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
Group as a lessee
The Group leases many assets, including:
– leases of land and buildings from 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 motor vehicles and forklifts for use by employees, agents and representatives. These leases range for a period of between three and
seven years.
The Group elects not to recognise right-of-use assets and lease liabilities for short-term or low-value property leases. The Group continues to
expense lease payments associated with these leases on a straight-line basis.
A. Right-of-use assets
PROPERTY VEHICLES TOTAL
$000 $000 $000
Balance at 1 July 2021 90,090 10,974 101,064
Additions 648 6,733 7,381
Depreciation charge for the period (14,083) (5,924) (20,007)
Reassessments, modifications and terminations 3,253 688 3,941
Net impairment reversal / (impairment) 695 – 695
Balance at 30 June 2022 80,603 12,471 93,074
Balance at 1 July 2022 80,603 12,471 93,074
Additions 557 7,045 7,602
Depreciation charge for the period (14,161) (6,291) (20,452)
Reassessments, modifications and terminations 3,713 131 3,844
Balance at 30 June 2023 70,712 13,356 84,068
B. Lease liabilities
PROPERTY VEHICLES TOTAL
$000 $000 $000
Balance at 1 July 2021 92,814 11,204 104,018
Additions 700 6,733 7,433
Reassessments, modifications and terminations 3,263 679 3,942
Interest on lease liabilities 3,356 429 3,785
Lease payments (16,358) (6,301) (22,659)
Balance at 30 June 2022 83,775 12,744 96,519
Balance at 1 July 2022 83,775 12,744 96,519
Additions 488 7,046 7,534
Reassessments, modifications and terminations 3,702 129 3,831
Interest on lease liabilities 3,103 697 3,800
Lease payments (16,470) (6,859) (23,329)
Balance at 30 June 2023 74,598 13,757 88,355
A maturity analysis of lease liabilities is included in Note 19 Financial Instruments – Fair Values and Risk Management.
Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. Some of the Group's property
leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. The extension
options are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement date whether it is reasonably certain
to exercise the extension options. A reassessment is made subsequently if there is any significant event or significant changes in
circumstances within the Group's control. The Group estimates that the potential future lease payments, should it exercise all
the extension options, would result in an increase in lease liability of $95.8 million (2022: $93.2 million).

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Ng- Whakapuakanga P(tea T-piri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
15 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONTINUED)
C. Other disclosures
2023 2022
NOTE $000 $000
Amount in the consolidated statement of profit or loss
Depreciation on right-of-use assets (20,452) (20,007)
Interest on lease liabilities 6 (3,800) (3,786)
Short-term or low-value lease expenses (888) (1,081)
Variable lease payments not included in the measurement of lease liabilities (102) (168)
Income from sub-leasing right-of-use assets 1,012 1,389
Gain/(loss) arising from sale and leaseback transactions – 82
Amounts in the consolidated statement of cashflows
Total cash outflow for leases (23,332) (22,659)
Lease Accounting Policies
The Group adopted NZ IFRS 16 Leases from 1 July 2019. The Group assesses at the inception of a contract as to whether the contract is, or
contains, a lease as defined in NZ IFRS 16 Leases.
(i) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The Group elects not to recognise right-
of-use assets and lease liabilities for short-term or low-value leases. The Group continues to expense lease payments associated with these
leases on a straight-line basis.
A number of judgements and estimates are made in calculating the right-of-use asset and lease liability amounts. The judgements and
estimates include the applicable lease terms (including any rights of renewal expected to be exercised) and the Group's incremental
borrowing rate.
Right-of-use assets
Right-of-use assets are initially measured at cost, which comprises the initial amount of lease liability adjusted for any prepaid lease
payments, plus any initial direct costs incurred and any estimated restoration costs, and less any lease incentives received. These assets are
depreciated using the straight-line method from the commencement date to the earlier of the end of the lease term or the asset's useful
life. Right-of-use assets are periodically reduced by impairment losses (if any) and adjusted for certain remeasurements of the lease liabilities.
Lease liabilities
Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date. Lease
payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that are based on an index
or a rate, amounts expected to be payable under a residual value guarantee, and any exercise price the Group is reasonably certain to
exercise. The lease payments are discounted using the Group's incremental borrowing rate, being the rate that the Group would have to
pay to borrow the fund necessary to obtain an asset of similar value in a similar environment under similar terms and conditions.
After the commencement date, lease liabilities are increased to reflect interest on the lease liabilities and reduced to reflect the lease
payments made. Interest on lease liabilities is charged to the profit and loss and is the amount that produces a constant periodic rate of
interest on the remaining balance of the lease liabilities.
Lease liabilities are remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the
Group's estimate of any amount payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise
a purchase, extension or termination option. When the lease liabilities are remeasured, a corresponding adjustment is made to the carrying
amount of the right-of-use assets, or recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
(ii) As a lessor
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. It assesses the lease
classification of a sub-lease with reference to the right-of-use asset arising from the head lease.
The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term.

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Ngā Whakapuakanga Pūtea Tāpiri
Refer to
Accounting
Policies
– page 25.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
16 PROPERTY, PLANT AND EQUIPMENT
PLANT AND CAPITAL WORK
LAND BUILDINGS EQUIPMENT IN PROGRESS TOTAL
$000 $000 $000 $000 $000
Cost
Balance at 1 July 2021 12,730 14,329 56,079 2,654 85,792
Additions 5 510 3,752 1,698 5,965
Transfers – – 343 (343) –
Disposals (6) (104) (582) – (692)
Balance at 30 June 2022 12,729 14,735 59,592 4,009 91,065
Balance at 1 July 2022 12,729 14,735 59,592 4,009 91,065
Additions – 868 3,378 2,268 6,514
Transfers – – 2,785 (2,785) –
Disposals (80) (147) (1,173) (1) (1,401)
Balance at 30 June 2023 12,649 15,456 64,582 3,491 96,178
Depreciation and impairment losses
Balance at 1 July 2021 – 4,875 36,290 – 41,165
Depreciation for the year – 309 4,682 – 4,991
Depreciation recovered to COGS – – 189 – 189
Disposals and transfers – (4) (519) – (523)
Impairment / (impairment reversal) – (414) – – (414)
Balance at 30 June 2022 – 4,766 40,642 – 45,408
Balance at 1 July 2022 – 4,766 40,642 – 45,408
Depreciation for the year – 451 4,551 – 5,002
Depreciation recovered to COGS – – 173 – 173
Disposals and transfers – (52) (1,094) – (1,146)
Balance at 30 June 2023 – 5,165 44,272 – 49,437
Carrying amounts
At 30 June 2022 12,729 9,969 18,950 4,009 45,657
At 30 June 2023 12,649 10,291 20,310 3,491 46,741
Capital gains on the sale of property, plant and equipment of $0.38 million were recognised in non-operating items in the current year
(2022: $0.76 million gain).

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ADDITIONAL FINANCIAL DISCLOSURES
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PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
16 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Property, Plant & Equipment Accounting Policies
Recognition and measurement
Capital work in progress is stated at cost, net of accumulated imparment losses. Items of property, plant and equipment are stated at cost
less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the asset. The
cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset
to a working condition for its intended use, and the cost of dismantling and removing the items and restoring the site on which they are
located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When
parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components)
of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.
Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to
the Group and the cost can be measured reliably. The costs of day-to-day servicing of property, plant and equipment is recognised in profit
or loss as incurred.
Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each item of property, buildings, plant
and equipment. Leasehold assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The
estimated useful lives for the current and comparative periods are between 2 and 40 years for plant and equipment and 50 years for
buildings. Depreciation methods, useful lives and residual values are reassessed at each reporting date and adjusted if appropriate.
Impairment
The carrying amounts of the Group's property, plant & equipment 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. An impairment loss is
recognised in the profit or loss if the carrying amount of an asset exceeds the recoverable amount. Refer the accounting policy under
Note 5 Impairment and Fair Value Gains/(Losses) for further explanation.
17 TRADE AND OTHER PAYABLES
2023 2022
NOTE $000 $000
Trade creditors 105,679 123,444
Goods received but not invoiced 5,745 4,891
Contract liabilities 513 4,752
Employee entitlements 19,944 24,643
Accruals and other liabilities 30,061 28,610
Loyalty reward programme 21(A) 1,211 1,190
Other provisions (including product warranty, client claim and make good provisions) 17(A), 17(B) 3,273 4,522
166,876 192,052
Payable within 12 months 164,107 189,290
Payable beyond 12 months 2,769 2,762
166,876 192,052
A. Make good provision on leased properties
During the year, the Group recognised an additional provision of $0.07 million (2022: $0.07 million) in respect of new leased properties which it
signed up to. These costs have been capitalised to the right-of-use assets and are amortised over the life of the right-of-use assets. The Group also
released $0.05 million (2022: $0.14 million) of provision in respect to leased properties which it exited. At balance date, the balance of the make
good provision is $2.66 million (2022: $2.64 million). The Group expects to settle this liability over the next 10-15 years as the leases expire.

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Ngā Whakapuakanga Pūtea Tāpiri
Refer to
Accounting
Policies
– page 28.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
17 TRADE AND OTHER PAYABLES (CONTINUED)
B. Client claims provision
The Group receives client claims from time to time as part of the ordinary course of business and these claims are reviewed on a case by case basis
to determine validity. As at balance date, the Group was in the process of reviewing certain claims for the supply of goods which are typically the
responsibility of suppliers under terms of trade. The Group recognises a provision for its best estimate of any obligation. The information usually
required by NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets is not disclosed on the grounds of commercial sensitivity, i.e. disclosure
may impact the commercial position of the Group.
18 DEFINED BENEFIT ASSET/LIABILITY
The Group makes contributions to the PGG Wrightson Employee Benefits Plan (the Plan), a defined benefit plan that provides a range of
superannuation and insurance benefits for employees and former employees. The Plan is registered under the Financial Markets Conduct Act
2013. The Plan is not open to new members. The Plan's retired employees are entitled to receive an annual pension payment payable for their
remaining life, and in some cases, for the remaining life of a surviving spouse.
The actuarial calculations for the Plan are undertaken by Michael Chamberlain, a fellow of the New Zealand Society of Actuaries, for MCA NZ
Limited.
2023 2022 2021 2020 2019
$000 $000 $000 $000 $000
Present value of funded obligations (46,609) (49,165) (56,172) (62,563) (61,624)
Fair value of plan assets 45,533 47,039 56,483 52,725 55,741
Total defined benefit asset/(liability) (1,076) (2,126) 311 (9,838) (5,883)
A. Movement in net defined benefit asset/(liability)
NET DEFINED BENEFIT
DEFINED BENEFIT OBLIGATION FAIR VALUE OF PLAN ASSETS ASSET/(LIABILITY)
2023 2022 2023 2022 2023 2022
$000 $000 $000 $000 $000 $000
Balance at 1 July (49,165) (56,172) 47,039 56,483 (2,126) 311
Included in profit or loss:
Current service costs (481) (489) – – (481) (489)
Interest costs (1,881) (1,098) 1,798 1,105 (83) 7
Included in other comprehensive income:
Gains/(losses) from change in demographic assumptions – (1,418) – – – (1,418)
Gains/(losses) from change in financial assumptions 1,469 5,324 – – 1,469 5,324
Experience gains/(losses) (587) 2,239 – – (587) 2,239
Expected return on plan assets – – 177 (8,667) 177 (8,667)
Other:
Employer contributions – – 555 567 555 567
Member contributions (794) (816) 794 816 – –
Benefits paid by the plan 4,830 3,265 (4,830) (3,265) – –
Balance at 30 June (46,609) (49,165) 45,533 47,039 (1,076) (2,126)
The Group expects to pay $0.57 million in contributions to the Plan in 2024 (2023: expected $0.47 million and paid $0.56 million). Member
contributions are expected to be $0.45 million in 2024 (2023: expected $0.56 million and paid $0.79 million).
As at 30 June 2023, the weighted average duration of the defined benefit obligation (DBO) is 11.5 years for the Plan (2022: 12.0 years).

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ADDITIONAL FINANCIAL DISCLOSURES
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Ng- Whakapuakanga P(tea T-piri
Refer to
Accounting
Policies
– page 28.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
18 DEFINED BENEFIT ASSET/LIABILITY (CONTINUED)
B. Plan assets
2023 2022
% %
Consist of:
Equities 60 63
Fixed interest 27 29
Cash 13 8
100 100
Plan assets do not include any exposure to the Company's ordinary shares (2022: Nil).
C. Actuarial assumptions at the reporting date
2023 2022
% %
Discount rate used – Implied 11.5 year New Zealand Government Bond rate
(2022: Implied 12.0 year New Zealand Government Bond rate) 4.73 3.97
Inflation 2.00 2.00
Future salary increases 2.50 2.50
Future pension increases 1.65 1.65
2023 2023 2022 2022
MALE FEMALE MALE FEMALE
YEARS YEARS YEARS YEARS
Assumptions regarding future mortality rates based on published statistics and experience:
Longevity at age 65 for current pensioners 21 24 21 24
Longevity at age 65 for current members aged 45 23 25 23 25
D. Sensitivity analysis
The sensitivity of the DBO to changes in the weighted principal assumptions is:
2023 2023 2022 2022
DBO (INCREASE) DBO (INCREASE) DBO (INCREASE) DBO (INCREASE)
/ DECREASE WITH / DECREASE WITH / DECREASE WITH / DECREASE WITH
INCREASE IN DECREASE IN INCREASE IN DECREASE IN
ASSUMPTION ASSUMPTION ASSUMPTION ASSUMPTION
$000 $000 $000 $000
Discount rate (0.50% movement) 886 (932) 1,082 (1,180)
Salary growth rate (0.50% movement) (47) 47 (49) 49
Pension growth rate (0.25% movement) (280) 419 (541) 492
Life expectancy (1 year movement) (1,352) 1,585 (1,475) 1,524

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PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
Employee Benefits Accounting Policies
Defined benefit plans
The Group's net obligation with respect to defined benefit plans is calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior periods, discounting that amount and deducting the fair value of any plan
assets is deducted. The discount rate is the yield at the reporting date on bonds that have maturity dates approximating the terms of the
Group's obligations. The calculation is performed by a qualified actuary using the projected unit credit method. When the calculation
results in a potential asset for the Group, the recognised asset is limited to the lower of the net assets of the plan or the current value of the
contributions holiday that is expected to be generated.
Remeasurement of the net defined benefit asset/liability, which comprise actuarial gains and losses and the return on plan assets, are
recognised directly in other comprehensive income and the defined benefit plan reserve in equity. Net interest expense and other expenses
related to defined benefit plans are recognised in profit or loss.
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the undiscounted amount of
short-term employee benefits expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result
of past service provided by the employee and the obligation can be estimated reliably.
Long-term employee benefits
Provisions made with respect to employee benefits which are not expected to be settled within twelve months are measured as the present
value of the estimated future cash outflows to be made by the Group with respect to services provided by employees up to reporting date.
Remeasurements are recognised in profit or loss in the period in which they arise.
18 DEFINED BENEFIT ASSET/LIABILITY (CONTINUED)

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ADDITIONAL FINANCIAL DISCLOSURES
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Ng- Whakapuakanga P(tea T-piri
Refer to
Accounting
Policies
– page 34.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT
A. Accounting classifications and fair values
The tables below set out the Group's classification of each class of financial assets and liabilities, and their fair values.
FAIR VALUE
THROUGH AT AMORTISED TOTAL CARRYING
PROFIT OR LOSS COST AMOUNT FAIR VALUE
$000 $000 $000 $000
2023
Financial assets
Cash and cash equivalents – 4,643 4,643 4,643
Derivative assets 367 – 367 367
Trade and other receivables and contract assets – 140,552 140,552 140,552
Go receivables – 74,023 74,023 74,023
Other investments – 340 340 340
367 219,558 219,925
Financial liabilities
Debt – (69,960) (69,960) (69,960)
Derivative liabilities (1,000) – (1,000) (1,000)
Trade creditors – (105,679) (105,679) (105,679)
Goods received but not invoiced – (5,745) (5,745) (5,745)
Lease liabilities – (88,355) (88,355)
(1,000) (269,739) (270,739)
2022
Financial assets
Cash and cash equivalents – 4,676 4,676 4,676
Derivative assets 1,564 – 1,564 1,564
Trade and other receivables and contract assets – 164,896 164,896 164,896
Go receivables – 66,109 66,109 66,109
Other investments – 479 479 479
1,564 236,160 237,724
Financial liabilities
Debt – (37,500) (37,500) (37,500)
Derivative liabilities (1,161) – (1,161) (1,161)
Trade creditors – (123,444) (123,444) (123,444)
Goods received but not invoiced – (4,891) (4,891) (4,891)
Lease liabilities – (96,519) (96,519)
(1,161) (262,354) (263,315)
The Group's banking facilities are based on floating interest rates. Therefore, the fair value of the banking facilities equals the carrying value.

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PGG WRIGHTSON LIMITED
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Ngā Whakapuakanga Pūtea Tāpiri
Refer to
Accounting
Policies
– page 34.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
A. Accounting classifications and fair values (continued)
Fair value hierarchy
The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows:
– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
– Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices)
– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
$000 $000 $000 $000
2023
Derivative assets – 367 – 367
Derivative liabilities – (1,000) – (1,000)
2022
Derivative assets – 1,564 – 1,564
Derivative liabilities – (1,161) – (1,161)
B. Financial management risk
The Group's primary risks are those of liquidity and funding, credit and market (foreign currency, price and interest rate) risks.
The Group is committed to the management of risk to achieve sustainability of service, employment and profits, and therefore, takes on controlled
amounts of risk when considered appropriate. The Board of Directors is responsible for the review and ratification of the Group's systems of risk
management, internal compliance and control, code of conduct and legal compliance. The Board maintains a formal set of delegated authorities
(including policies for credit and treasury) that clearly define the responsibilities delegated to Management and those retained by the Board. The
Board approves these delegated authorities and reviews them annually.
The following management committees review and manage key risks:
– The Senior Management Team meets regularly to consider new and emerging risks, review actions required to manage and mitigate key risks,
and to monitor progress.
– The Credit Committee, comprising of management appointees, meets regularly to review credit risk, account limits and provisioning.
Management formally reports on all aspects of key risks to the Audit Committee at least two times each year.
(i) Liquidity and funding risks
Liquidity risk is the risk that the Group will encounter difficulties in raising funds at short notice to meet commitments associated with financial
instruments. Funding risk is the risk of over-reliance on a funding source to the extent that a change in that funding source could increase overall
funding costs or cause difficulty in raising funds.
The Group manages liquidity risk by forecasting daily cash requirements and future funding requirements, and maintaining an adequate liquidity
headroom. The Group monitors its liquidity daily, weekly and monthly and maintains appropriate liquid assets and committed bank funding
facilities to meet all obligations in a timely and cost efficient manner. The Group has a policy of funding diversification and utilises a banking
syndicate to limit concentration risk in relation to liquidity and funding. The funding policy augments the Group's liquidity policy with its aim to
ensure the Group has a stable diversified funding base without over-reliance on any one market sector.
The objectives of the Group's funding and liquidity policy is to:
– Ensure all financial obligations are met when due;
– Provide adequate protection, even under crisis scenarios; and
– Achieve competitive funding within the limitations of liquidity requirements.

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ADDITIONAL FINANCIAL DISCLOSURES
|
Ng- Whakapuakanga P(tea T-piri
Refer to
Accounting
Policies
– page 34.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
B. Financial management risk (continued)
(i) Liquidity and funding risks (continued)
Contractual maturity analysis
The following schedule analyses the Group's financial liabilities into relevant maturity groupings based on the remaining period at the balance
date to the contractual maturity date (reported on an undiscounted basis). History demonstrates that such accounts provide a stable source of
long term funding for the Group.
CONTRACTUAL CASH FLOW
WITHIN BEYOND AMOUNT IN
12 MONTHS 1 TO 5 YEARS 5 YEARS TOTAL BALANCE SHEET
$000 $000 $000 $000 $000
2023
Debt 25,460 52,292 – 77,752 69,960
Derivative liabilities 888 112 – 1,000 1,000
Trade creditor 105,679 – – 105,679 105,679
Goods received but not invoiced 5,745 – – 5,745 5,745
Lease liabilities 21,895 56,169 21,770 99,834 88,355
159,667 108,573 21,770 290,010 270,739
2022
Debt 7,942 30,037 – 37,979 37,500
Derivative liabilities 1,009 152 – 1,161 1,161
Trade creditors 123,444 – – 123,444 123,444
Goods received but not invoiced 4,891 – – 4,891 4,891
Lease liabilities 21,655 58,210 32,396 112,261 96,519
158,941 88,399 32,396 279,736 263,315
Changes in liabilities arising from financing activities
CHANGES IN LEASE
1 JUL 2022 CASHFLOW FAIR VALUE MODIFICATIONS 30 JUN 2023
$000 $000 $000 $000 $000
Debt 37,500 32,460 – – 69,960
Lease liabilities 96,519 (19,532) – 11,368 88,355
Total liabilities from financing activities 134,019 12,928 – 11,368 158,315
CHANGES IN LEASE
1 JUL 2021 CASHFLOW FAIR VALUE MODIFICATIONS 30 JUN 2022
$000 $000 $000 $000 $000
Debt 9,900 27,600 – – 37,500
Lease liabilities 104,018 (18,873) – 11,374 96,519
Total liabilities from financing activities 113,918 8,727 – 11,374 134,019
(ii) Credit risk
Credit risk is the potential for loss that could occur as a result of a counterparty failing to discharge its obligations. This may be due to extreme
weather events or volatility in commodity prices.

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Ngā Whakapuakanga Pūtea Tāpiri
Refer to
Accounting
Policies
– page 34.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
B. Financial management risk (continued)
Concentrations of credit risk
Financial instruments which potentially subject the Group to concentrations of credit risk principally consist of bank balances, trade receivables,
Go receivables, other receivables, other investments and forward foreign exchange contracts. The Group places its cash with three major trading
banks. Concentrations of credit risk with respect to trade and Go receivables are limited due to the large number of customers included in the
Group's farming customer base in New Zealand.
(iii) Market risk
Market risk is the potential for change in the value of balance sheet positions caused by a change in the value, volatility or relationship between
market risks and prices. Market risk arises from the mismatch between assets and liabilities, both on and off balance sheet. Market risk includes
price, foreign currency and interest rate risk which are explained as follows.
Concentrations of market risk
The Group has exposure to commodity pricing risk on Wool/Velvet inventories and forward Wool/Velvet sales and purchase contracts. This is
mitigated by the Group having policies around unmatched positions. Other inventory is of merchandise nature and the Group has a range of
suppliers or has entered into long-term supply agreements.
Foreign currency risk
The Group undertakes transactions denominated in foreign currencies and exposure to movements in foreign currency arises from these activities.
The Group manages this risk by using forward foreign exchange contracts to hedge foreign currency risks as they arise.
Foreign currency exposure risk
The Group's exposure to foreign currency risk is summarised below. The notional forward exchange cover includes forward foreign exchange
contracts entered into to economically hedge forward sale and purchase commitments.
GBP USD AUD EURO
NZ$000 NZ$000 NZ$000 NZ$000
2023
Cash and cash equivalents – – – 553
Trade receivables 62 128 (1) 1,959
Trade creditors (842) (11,675) (606) (2,397)
Net balance sheet position
(780) (11,547) (607) 115
Forward exchange contracts on balance sheet items
and forward sale and purchase commitments
Notional forward exchange cover 5,567 17,446 1,089 18,685
Net unhedged position
(6,347) (28,993) (1,696) (18,570)
2022
Cash and cash equivalents – 2 – –
Trade receivables 938 2,008 899 4,175
Trade creditors (1,198) (17,018) (1,561) (2,091)
Net balance sheet position
(259) (15,008) (662) 2,084
Forward exchange contracts on balance sheet items
and forward sale and purchase commitments
Notional forward exchange cover (5,239) 8,591 (547) (14,006)
Net unhedged position
4,980 (23,599) (115) 16,090

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33
ADDITIONAL FINANCIAL DISCLOSURES
|
Ng- Whakapuakanga P(tea T-piri
Refer to
Accounting
Policies
– page 34.
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
B. Financial management risk (continued)
(iii) Market risk (continued)
Interest rate risk
Floating rate borrowings are used for general funding activities. Interest rate risk is the risk that the value of financial instruments and the interest
margin will fluctuate as a result of changes in market interest rates. The risk is that financial assets may be repriced at a different time and/or by a
different amount than financial liabilities.
This risk is managed by operating within approved policy limits using an interest rate duration approach. Interest rate swaps, interest rate options
and forward rate agreements may be used to hedge the floating rate exposure as deemed appropriate. The Group had no interest rate derivatives
at balance date (2022: Nil).
Interest rate repricing schedule
The following tables include the Group's liabilities at their carrying amounts, categorised by the earlier of contractual repricing or maturity dates.
WITHIN 1 TO 2 OVER NON INTEREST
12 MONTHS YEARS 2 YEARS BEARING TOTAL
$000 $000 $000 $000 $000
2023
Debt 19,960 50,000 – – 69,960
Derivative liabilities – – – 1,000 1,000
Trade creditors – – – 105,679 105,679
Goods received but not invoiced – – – 5,745 5,745
19,960 50,000 – 112,424 182,384
2022
Debt 7,500 30,000 – – 37,500
Derivative liabilities – – – 1,161 1,161
Trade creditors – – – 123,444 123,444
Goods received but not invoiced – – – 4,891 4,891
7,500 30,000 – 129,496 166,996
Sensitivity analysis
The Group's treasury policy effectively insulates earnings from the effect of short-term fluctuations in either foreign exchange or interest rates. Over
the longer term however, permanent changes in foreign exchange rates and interest rates will have an impact on profit. A 2% change in interest
rate has been applied as it is considered a reasonably possible change (2022: 2%). The sensitivity of net profit after tax for the period to 30 June
2023 and 30 June 2022, and shareholders equity at that date, to reasonably possible changes in conditions is shown below.
INTEREST RATES INTEREST RATES INTEREST RATES INTEREST RATES
INCREASE BY 2% INCREASE BY 2% DECREASE BY 2% DECREASE BY 2%
2023 2022 2023 2022
$000 $000 $000 $000
Increase/(decrease) in net profit after tax and shareholders' equity (1,255) (608) 1,131 494
Other market risks such as pricing and foreign exchange are not considered likely to lead to material change over the next reporting period. The
Group's financial assets and liabilities are predominantly held in NZD. For this reason, a sensitivity analysis of these market risks is not included.
C. Capital management
The capital of the Group consists of share capital, reserves, and retained earnings. The policy of the Group is to maintain a strong capital base so
as to maintain investor, creditor and market confidence while providing the ability to develop future business initiatives. This policy has not been
changed during the period.

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PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
19 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
Non-Derivative Financial Instruments Accounting Policies
(i) Non-derivative financial assets
Non-derivative financial assets comprise cash and cash equivalents, trade and other receivables, Go livestock receivables and investments in
equity and debt securities.
The Group initially recognises financial assets on the date at which the Group becomes a party to the contractual provisions of the
instrument, although trade receivables are initially recognised when they are originated.
Financial assets are initially measured at fair value. If the financial asset is not subsequently measured at fair value through profit or loss, the
initial investment includes transaction costs that are directly attributable to the asset's acquisition or origination. The Group subsequently
measures financial assets at either fair value or amortised cost.
Financial assets measured at amortised cost
A financial asset is subsequently measured at amortised cost using the effective interest method and net of any impairment loss, if:
– the asset is held within a business model with an objective to hold assets in order to collect contractual cash flows; and
– the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest.
Financial assets measured at fair value
Financial assets other than those classified as financial assets measured at amortised cost are subsequently measured at fair value with all
changes recognised in profit or loss.
However, for investments in equity instruments that are not held for trading, the Group may elect at initial recognition to present gains
and losses through other comprehensive income. For instruments measured at fair value through other comprehensive income gains and
losses are never reclassified to profit and loss and no impairments are recognised in profit and loss.
Cash and cash equivalents
Cash and cash equivalents include cash on hand and deposits held at call with banks. Bank overdrafts that are repayable on demand and
form an integral part of the Group's cash management are included as a component of cash and cash equivalents.
Trade and other receivables and Go livestock receivables
Trade and other receivables and Go livestock receivables are stated at their amortised cost less impairment losses.
(ii) Non-derivative financial liabilities
Interest-bearing borrowings
Interest-bearing borrowings are classified as other financial liabilities and are initially recognised at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.
Trade and other payables
Trade and other payables are recognised initially at fair value and are subseqently measured at amortised cost using the effective interest
method after initial recognition.
(iii) Determination of fair values for non-derivative financial instruments
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the reporting date.

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Ng- Whakapuakanga P(tea T-piri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
20 COMMITMENTS
A. Capital expenditure not provided for
The Group has capital commitments of $3.65 million as at 30 June 2023 (2022: $Nil).
B. Forward purchase commitments
The Group as part of its ordinary course of business enters into forward purchase agreements with wool and velvet growers. These commitments
extend for periods of up to 2 years and are at varying stages of execution. There remains uncertainty associated with yield, quality and market
price. Therefore, the Group is unable to sufficiently quantify the value of these commitments.
C. Forward sales commitments
The Group as part of its ordinary course of business enters into forward sales agreements with wool and velvet customers. These commitments
extend for periods of up to 2 years and are at varying stages of execution. There remains uncertainty associated with yield, quality and market
price. Therefore, the Group is unable to sufficiently quantify the value of these commitments.
21 CONTINGENT LIABILITIES
A. PGG Wrightson Loyalty Reward Programme
The Group recognises a provision for the expected level of points redemption from the PGG Wrightson Max Rewards Loyalty Reward Programme.
As at balance date, the balance of live points which does not form part of the recognised provision total $0.08 million (2022: $0.10 million). Losses
are not expected to arise from this contingent liability. Revenue is deferred until such time as the reward is claimed by the customer
B. Contingent liabilities
The Group receives client claims as part of the ordinary course of business in the supply of goods and services. The Group will pursue recovery
of claims with suppliers where appropriate under terms of trade. Accordingly, the amount of any potential obligation in respect of these claims
cannot be estimated with sufficient reliability.
22 SEASONALITY OF OPERATIONS
The Group is subject to significant seasonal fluctuations. The Group's earnings are weighted towards the first half of the financial year and are
primarily related to the Retail business, as demand for New Zealand farming inputs are generally weighted towards the spring season. The second
half earnings predominantly relate to Livestock trading as farmers seek to maximise their income following New Zealand's spring calving and
lambing season. Other business units have similar but less material seasonal fluctuations. The Group recognises that this seasonality is the nature
of the industry and plans and manages its business accordingly.

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PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
23 SUBSEQUENT EVENTS
Dividend
On 14 August 2023, the Directors of PGG Wrightson Limited resolved to pay a final dividend of 10 cents per share on 3 October 2023 to
shareholders on the Company's share register as at 5.00pm on 15 September 2023. This dividend will be fully imputed.
24 RELATED PARTIES
A. Key management personnel compensation
2023 2022
$000 $000
Key management personnel compensation comprised:
Short-term employee benefits 4,493 4,647
Post-employment benefits 135 126
4,628 4,773
Directors fees incurred during the year are disclosed in Note 3 Other Operating Expenses.
B. Other transactions with key management personnel
Senior Executives or their related parties hold positions in other entities that result in them having control or significant influence over the
financial or operating policies of these entities. A number of these Senior Executives and their related parties transacted with the Group during the
reporting period.
The aggregate value of transactions and outstanding balances (on a GST inclusive basis) relating to the Senior Executives and entities over which
they have control or significant influence were as follows:
TRANSACTION BALANCE TRANSACTION BALANCE
VALUE OUTSTANDING VALUE OUTSTANDING
2023 2023 2022 2022
$000 $000 $000 $000
Key management
personnel Transaction
Nick Berry Purchase of retail goods
and fuel on-charge transactions 2 – 2 –
Julian Daly Purchase of retail goods 1 – 1 –
Stephen Guerin Purchase of retail goods and livestock transactions 8 – 21 –
Peter Moore Purchase of retail goods
and fuel on-charge transactions 2 – 3 –
Peter Newbold Purchase of retail goods
and fuel on-charge transactions 42 1 22 –
Peter Scott Purchase of retail goods
and fuel on-charge transactions 3 – 5 –

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ADDITIONAL FINANCIAL DISCLOSURES
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Ng- Whakapuakanga P(tea T-piri
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
25 REPORTING ENTITY
PGG Wrightson Limited (the "Company") is a company domiciled in New Zealand and registered under the Companies Act 1993 in New Zealand.
The Company's registered office is at 1 Robin Mann Place, Christchurch. The Company is listed on the New Zealand Stock Exchange and is an FMC
Reporting Entity for the purposes of the Financial Markets Conduct Act 2013.
The consolidated financial statements of PGG Wrightson for the year ended 30 June 2023 comprise the Company and its subsidiaries (together
referred to as the "Group"). The Group is primarily involved in the provision of goods and services within the agricultural and horticultural sectors.
OWNERSHIP INTEREST
COUNTRY OF 2023 2022
SIGNIFICANT SUBSIDIARIES INCORPORATION DIRECT PARENT % %
Bidr Limited New Zealand PGG Wrightson Limited 100% 100%
Bloch & Behrens Wool (NZ) Limited New Zealand PGG Wrightson Limited 100% 100%
NZ Agritrade Limited New Zealand PGG Wrightson Limited 100% 100%
PGG Wrightson Investments Limited New Zealand PGG Wrightson Limited 100% 100%
PGG Wrightson Real Estate Limited New Zealand PGG Wrightson Limited 100% 100%
PGG Wrightson Trustee Limited New Zealand PGG Wrightson Limited 100% 100%
PGG Wrightson Employee Benefits Plan Trustee Limited New Zealand PGG Wrightson Limited 100% 100%
26 BASIS OF PREPARATION
A. Statement of compliance
These consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice ("NZ
GAAP"). They comply with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board, the New
Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable Financial Reporting Standards, as appropriate
for a Tier 1 for-profit entity. These consolidated financial statements have also been prepared in accordance with the requirements of the Financial
Markets Conduct Act 2013 and the Financial Reporting Act 2013.
B. Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for the following:
– Derivative financial instruments are measured at fair value.
– Financial instruments at fair value through profit or loss are measured at fair value.
C. Functional and presentation currency
These consolidated financial statements are presented in New Zealand dollars ($), which is the functional currency of each of the group entities. All
amounts have been rounded to the nearest thousand, unless otherwise indicated.
D. Use of estimates and judgements
In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application
of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates and assumptions.
Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
Information about critical judgements made in applying accounting policies, assumptions and estimation uncertainties that have the most
significant effect on the amounts recognised in the financial statements is included in the following notes:
Note
11 Carrying value of trade and other receivables
12 Carrying value of Go livestock receivables
13 Carrying value of inventories
18 Measurement of defined benefit asset/liability – Key actuarial assumptions
E. Comparative information
Certain comparative amounts have been reclassified to conform with the current period’s presentation.

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PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
27 OTHER SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out in these consolidated financial statements have been applied consistently to all periods presented in these
consolidated financial statements, and have been applied consistently by Group entities.
A. Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are
included in the consolidated financial statements from the date on which control commences until the date on which control ceases.
Transactions eliminated on consolidation
Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated
financial statements. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the
extent of the Group's interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there
is no evidence of impairment.
B. Foreign currency
Transactions in foreign currencies are translated to the respective functional currencies of the group entities at the exchange rates at the dates of
the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at the reporting
date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated to the functional currency at the
exchange rate at the date that fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency
are translated to the functional currency at the exchange rate at the date of the transaction. Foreign currency differences arising are recognised in
profit or loss.
C. Disclosure of non-GAAP financial information
Non-GAAP reporting measures have been presented in the consolidated statement of profit or loss or referenced to in the notes to the
consolidated financial statements. The following non-GAAP measures are relevant to the understanding of the Group's financial performance:
– Operating EBITDA represents earnings before net interest and finance costs, income tax, depreciation, amortisation, the results from
discontinued operations, impairments and fair value adjustments and non-operating items.
– EBIT represents earnings before net interest and finance costs, income tax expense and the results from discontinued operations.
The Directors and management believe the Operating EBITDA and EBIT measures provide useful information as they provide valuable insight
on the underlying performance of the business. They are used internally to evaluate the underlying performance of the business and to analyse
trends.
These measures are not uniformly defined or utilised by all companies. Accordingly, these measures may not be comparable with similarly titled
measures used by other companies. Non-GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures
reported in accordance with NZ IFRS.
D. Standards issued but not yet effective
There are a number of new standards and interpretations that are issued, but not yet effective, for the year ended 30 June 2023 and have not been
applied in preparing these consolidated financial statements. The Group expects to adopt these when they become mandatory. While the impact
of these new standards and interpretations have not yet been fully quantified, none are expected to materially impact the Group's consolidated
financial statements.

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PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2023
28 CAPITAL AND RESERVES
Share capital
All shares are ordinary fully paid shares with no par value, carry equal voting rights and share equally in any profit on the winding up of the Group.
Realised capital and revaluation reserve
The realised capital reserve comprises the cumulative net capital gains that have been realised. The revaluation reserve relates to historic
revaluations of property, plant and equipment.
Defined benefit plan reserve
The defined benefit plan reserve contains actuarial gains and losses on plan assets and defined benefit obligations.
Fair value reserve
The fair value reserve comprises the cumulative net change in the fair value of equity investments elected at fair value through other
comprehensive income until the investments are derecognised or impaired. In June 2023 historical fair value losses of $2.40 million, in respect of
the Group's investment in BioPacificVentures, were transferred to Retained earnings following the wind-up and receipt of final proceeds from this
investment.
Retained earnings/deficit
The retained earnings deficit equals accumulated undistributed profits/losses.
Dividends
The following dividends were declared and paid by the Company.
PAYMENT DATE $ PER SHARE
2023 interim dividend – fully imputed 4 April 2023 0.120
2022 final dividend – fully imputed 3 October 2022 0.160
2022 interim dividend – fully imputed 1 April 2022 0.140
Share Capital Accounting Policies
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction
from equity.
Repurchase of ordinary shares
When shares recognised as equity are repurchased, the amount of the consideration paid, including directly attributable costs, is recognised
as a deduction from equity. Repurchased shares are cancelled. However, treasury stock for which unrestricted ownership has not yet been
transferred are not cancelled.

ADDITIONAL FINANCIAL DISCLOSURES
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Ngā Whakapuakanga Pūtea Tāpiri
40
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PGG WRIGHTSON LIMITED
Balance at 1 July 2021 372,318 24,662 (7,450) (2,430) (213,562) 173,538
Total comprehensive income for the period
Profit or loss – – – – 24,286 24,286
Other comprehensive income
Changes in fair value of equity instruments, net of tax – – – 7 – 7
Defined benefit plan actuarial gain/(loss), net of tax – – (1,816) – – (1,816)
Total comprehensive income for the period – – (1,816) 7 24,286 22,477
Contributions by and distributions to shareholders
Dividends to shareholders – – – – (23,331) (23,331)
Total contributions by and distributions to shareholders – – – – (23,331) (23,331)
Balance at 30 June 2022 372,318 24,662 (9,266) (2,423) (212,607) 172,684
Balance at 1 July 2022 372,318 24,662 (9,266) (2,423) (212,607) 172,684
Total comprehensive income for the period
Profit or loss – – – – 17,518 17,518
Other comprehensive income
Changes in fair value of equity instruments, net of tax – – – 9 – 9
Defined benefit plan actuarial gain/(loss), net of tax – – 762 – – 762
Total other comprehensive income – – 762 9 – 771
Total comprehensive income for the period – – 762 9 17,518 18,289
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders – – – – (21,712) (21,712)
Total contributions by and distributions to shareholders – – – – (21,712) (21,712)
Transfer to retained earnings – – – 2,414 (2,414) –
Balance at 30 June 2023 372,318 24,662 (8,504) – (219,215) 169,261
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2023
REALISED
CAPITAL AND DEFINED RETAINED
SHARE REVALUATION BENEFIT PLAN FAIR VALUE EARNINGS/ TOTAL
CAPITAL RESERVES RESERVE RESERVE (DEFICIT) EQUITY
$000 $000 $000 $000 $000 $000

A member firm of Ernst & Young Global Limited


Independent auditor’s report to the Shareholders of PGG Wrightson Limited
Opinion
We have audited the financial statements of PGG Wrightson Limited (“the Company”) and its
subsidiaries (together “the Group”) on pages 1 to 40 which comprise the consolidated statement of
financial position of the Group as at 30 June 2023, and the consolidated statement of profit or loss,
consolidated statement of other comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year then ended of the Group, and the notes to the
consolidated financial statements including a summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 1 to 40 present fairly, in all material
respects, the consolidated financial position of the Group as at 30 June 2023 and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand
equivalents to International Financial Reporting Standards and International Financial Reporting
Standards.
This report is made solely to the Company's shareholders, as a body. Our audit has been undertaken so
that we might state to the Company's shareholders those matters we are required to state to them in an
auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company's shareholders, as a body,
for our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Ernst & Young provides greenhouse gas reporting assurance, employee incentive schemes advisory,
and R&D taxation services to the Group. Partners and employees of our firm may deal with the Group
on normal terms within the ordinary course of trading activities of the business of the Group. We have
no other relationship with, or interest in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, but we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.

A member firm of Ernst & Young Global Limited


We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial statements section of the audit report, including in relation to these matters. Accordingly, our
audit included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial statements. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying consolidated financial statements.
Collectability of trade and Go receivables
Why significant How our audit addressed the key audit matter
At 30 June 2023 trade and Go receivables
totalled $191.8m, representing 39% of Group
total assets. This amount is net of the
provision for impaired trade and Go
receivables of $2.4m.
We consider this to be a key audit matter
because trade and Go receivables are a
significant component of Group assets and the
provision for impaired receivables involves
significant judgement.

Disclosures in relation to trade and Go
receivables and their provisions for
impairment are included in notes 11 and 12 to
the Group financial statements.
Our audit procedures included the following:
• obtained an understanding of management’s
receivables provisioning process;
• assessed management’s provisioning methods
and whether they comply with NZ IFRS 9;
• considered the inputs, assumptions and
estimates used or made by management;
• tested the ageing of receivables by agreeing
the recorded ageing of a sample of trade
receivables to sales documentation;
• considered beef and sheep meat commodity
price movements up to and after balance date
to assess whether these changes, which are
indicative of changes in the value of livestock
security held for Go receivables, indicated any
material increase in the credit risk of Go
receivables;
• considered the appropriateness and
sufficiency of the disclosures related to trade
and Go receivables and the related
provisioning.

A member firm of Ernst & Young Global Limited


Inventory valuation
Why significant How our audit addressed the key audit matter
Inventory is recorded at the lower of cost and
net realisable value. At 30 June 2023
inventory totalled $107.5m, representing 22%
of the Group’s total assets. This amount is net
of a provision for inventory write down of
$2.0m.
We consider this to be a key audit matter
because inventory is a significant component
of Group total assets and the cost of inventory
includes an estimation of adjustments to
reflect variable pricing arrangements with
suppliers. In addition, the assessment of the
net realisable value of slow moving, excess
and obsolete inventory involves significant
judgement related to whether inventory will be
sold and at what value.
Disclosures in relation to inventory and
inventory provisions are included in note 13 to
the Group financial statements.



Our audit procedures included the following:
• compared a sample of recorded inventory cost
to supplier invoices;
• assessed the inputs into, and calculation of,
adjustments to inventory cost to take account
of variable pricing arrangements with
suppliers;
• confirmed with a sample of suppliers the
amount of purchases from them subject to
variable pricing arrangements for the year,
and the amounts receivable from them at year
end;
• considered the methods, models, and
assumptions used by management in
estimating the net realisable value of slow
moving, excess and obsolete inventory;
• considered the key inputs into the net
realisable value provision calculation including
last purchase date, last sale date and volume
of sales in the year for selected product lines.
We tested these inputs including for a sample
of inventory items:
• agreeing the last purchase date and last
sale date to supporting invoices;
• recalculating the annual sales volumes
recorded in the inventory system;
• compared the cost of a sample of inventory
items to their most recent selling price;
• considered the extent of inventory items sold
at negative margins in the year;
• considered the appropriateness and
sufficiency of disclosures related to the
valuation of inventory.
Information other than the financial statements and auditor’s report
The Directors of the Company are responsible for the Annual Report, which includes information other
than the consolidated financial statements and auditor’s report which is expected to be made available
to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.

A member firm of Ernst & Young Global Limited


In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained during the audit, or otherwise
appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with governance and, if uncorrected, to take
appropriate action to bring the matter to the attention of users for whom our auditor’s report was
prepared.
Directors’ responsibilities for the financial statements
The Directors are responsible, on behalf of the entity, for the preparation and fair presentation of the
consolidated financial statements in accordance with New Zealand equivalents to International Financial
Reporting Standards and International Financial Reporting Standards, and for such internal control as
the Directors determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing on behalf
of the entity the Group’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Directors either
intend to liquidate the Group or cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with International Standards on Auditing (New
Zealand) will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located
at the External Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit-report-1/. This description forms part of our auditor’s
report.
The engagement partner on the audit resulting in this independent auditor’s report is Bruce Loader.




Chartered Accountants
Christchurch
14 August 2023