PGW half year result and guidance update

Te Pūrongo mō te Tau Haurua
For the six months ended 31 December 2023 | Mō ngā marama e ono ki te 31 o Tīhema 2023
Helping grow the country
Half Year Report

Cover image: Fruitfed
Supplies Technical
Horticultural Representative,
Tim Mounsey, discusses bud
break with Mike Saunders,
Viticulture Manager,
Greystone Wines near
Waipara, Canterbury.
2 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
Fruitfed Supplies Technical Horticultural Representative, Kath
Lee-Jones and PGG Wrightson Technical Field Representative,
Conor Robertson check seed placement and population in a newly
planted carrot crop with Ricky Deadman, Grower, Snokist Carrots
and his daughter, Willa, near Ohakune, Manawatū-Wanganui.
Performance Highlights
Ngā Whakatutukitanga Hira
$12.7m
Net profit after tax ("NPAT") of
$8.4m or 40%
$24.9m or 4%
$560.9m
Revenue of
$11.2m or 24%
$36.6m
Operating EBITDA of

Chair and
Chief Executive
Officer’s report
Te Pūrongo a te Heamana me te Tumuaki
PGG Wrightson Limited (“PGW”, “the Group”
or “the Company”) has traded solidly during
the first half of the financial year in materially
more challenging market conditions than
experienced in recent years. Factors such as
elevated levels of inflation and interest rates
on rising debt levels, together with subdued
demand and softer returns in most of New
Zealand’s key primary export commodities,
have all contributed to create a more
demanding environment for many of PGW’s
farmer and grower clients and we note that
there is generally a strong correlation between
the fortunes of our clients and PGW.
In terms of the key metrics, PGW delivered
operating earnings before interest, tax,
depreciation, and amortisation (“Operating
EBITDA”) of $36.6 million (down $11.2
million or 24 per cent compared to the prior
Garry Moore
Chair
Stephen Guerin
Chief Executive Officer
Updated Operating EBITDA guidance
of around $50 million for financial
year to 30 June 2024.
The PGW Board has by a majority
determined PGW will reinvest capital
back into growing the business by
suspending the interim dividend in
order to avoid adding debt in the
face of rising interest costs. The Board
considers PGW has performed well
against difficult market conditions
and the restraints impacting the
primary sector and wider economy.
It recognises uncertainties remain
and that it is prudent to wait until the
full financial year is complete before
reviewing the dividend payout ratio
(if any).
Recent levels of dividend have been at
the upper end of the payout ratio for
the sector and are not sustainable.
3 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023

corresponding period). Revenue was $560.9 million (down $24.9 million or 4% per cent)
and net profit after tax (NPAT ) from continuing operations was $12.7 million (down $8.4
million or 40 per cent versus the prior period).
This half year result can be described as steady in the context of the headwinds the
sector and the wider economy face. Our Retail & Water segment nevertheless traded
well compared to the record high for the comparative period. Our Agency segment
results were again impacted by the weak real estate market and softer commodity pricing
particularly in sheep and lamb markets where prices were back 28 per cent year-on-year.
In response to the trading conditions PGW has been actively managing and reducing
spend in a range of cost areas. At the same time, we have seen increases in costs through
supplier price rises as evidenced by CPI increases.
Favourable climatic conditions in Australia in recent years have seen farmers build up their
flocks, with sheep numbers estimated to be at their highest in 15 years. However, recent
dry conditions in Australia have resulted in record numbers going to slaughter and were
up more than 16 per cent from the
previous year. This excess supply
has negatively impacted farmgate
sheep meat prices on both sides of
the Tasman.
It is useful to look at this result in
the context of PGW’s performance
through the economic cycles over
recent years and we refer to our
half-year results at an Operating
EBITDA, revenue and NPAT level over
the previous five years. Please refer
to performance highlights on page 5.
It is also informative to highlight PGW’s total shareholder return baselined against the
S&P/NZ50G index over this period. PGW has seen a total shareholder return movement
of +93.08 per cent since the share consolidation in August 2019 following the sale of the
PGW seeds business. This compares favourably to the S&P/NZ50G index movement of
+8.44 per cent over the same period.
Despite the challenging environment PGW’s dedicated and knowledgeable team
continue to deliver first class service and products to our clients, who appreciate
the tailored advice they receive from our trusted store teams and reps in their fields
and orchards.
4 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
PGW’s Total Shareholder Return (gross) versus S&P/NZ50 (gross)
S&P / NZ50G INDEXPGW
300
270
240
210
180
150
120
90
60
Total shareholder return
AUG 2019 AUG 2020 AUG 2021 AUG 2022 AUG 2023
+93.08%
+8.44%
From 13 August 2019 (post share consolidation) to 31 December 2023, rebased to 100, includes dividends.
Source: IRESS

5 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
Share Price Post Share Consolidation
PGW share price from 13 August 2019 to 31 December 2023.
6.00
5.00
4.00
3.00
2.00
1.00
0
Operating EBITDA
60
50
40
30
20
10
0
-10
Retail & Water
Agency
Other
Total Operating EBITDA
31
34
44
49
40
7
9
7
4
-3-3
-4
-5-5
35
40
48
37
47
Revenue
700
600
500
400
300
200
100
0
H
Y20
H
Y21 HY22 HY23
H
Y24
H
Y20
H
Y21 HY22 HY23
H
Y24

H
Y20
H
Y21 HY22 HY23
H
Y24
Net Profit After Tax
25
20
15
10
5
0
469
13
499
17
552
23
586
561
21
13
Net Profit After Tax Total Net Profit After Tax
$ million
$ million
$ million
NZ$
Revenue Total Revenue
Five-year summary post divestment of PGG Wrightson Seeds Ltd.
Total may not equal due to rounding.
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
presentation. 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.
Other: Other (non-operating segment) relates to certain Group Corporate activities including
Governance, Finance, Treasury, Risk and Assurance, and other support services (including corporate
property services and marketing).
13 AUG 19 13 FEB 20 13 AUG 20 13 FEB 21 13 AUG 21 13 FEB 22 13 AUG 22 13 FEB 23 13 AUG 23
First Half Financial Year Five Year Summary
1
Financial Performance
Whakaaturanga Pūtea
PGG Wrightson Technical
Field Representative, Gerard
McCarthy, inspects a fodder
beet paddock to check how the
cattle are transitioning onto the
crop with Maddy Calder, Farm
Manager, Tarras Farms near
Tarras, Central Otago.
13-Aug-19 13-Feb-20 13-Aug-20 13-Feb-21 13-Aug-21 13-Feb-22 13-Aug-22 13-Feb-23 13-Aug-23
552
476
430

The Retail & Water business incorporates Rural Supplies, Fruitfed Supplies, Water, and
Agritrade. Operating EBITDA for Retail & Water was $40.0 million (down $9.0 million),
and revenue was $478.3 million (down $21.7 million) on the prior corresponding period.
Retail & Water group Rōpū Hokohoko me te Wai
Farm and orchard spending indicators across
the board continue to point downward.
Although farmer and grower confidence
has improved over the period, investment
intentions have fallen to their weakest since
the 1980s (excluding the first COVID-19
lockdown). This is a result of high interest
rates, inflation, and a decline in both meat and
milk commodity prices due to softer demand
in export markets and the ongoing impact of
Cyclone Gabrielle for our North Island clients
in both the rural and horticulture sectors.
The professionalism and superior advice,
service, and technical ability of our people
continues to reinforce client loyalty and
attract new customers and underpins
pleasing market share growth. We continue
to build on PGW’s reputation of providing the
best technical advice in our market and our
customer research demonstrates strongly that
this focus and market differentiating factor
resonates well with our clients and remains
a key component of our strategy as we hold
and grow our market competitiveness.
In several sales categories, we have seen
growth on last year’s record result. The
standout range being General Merchandise
which is continuing to grow year-on-year.
This is a strong indicator that we are seeing
an increase in foot traffic through our stores
which is a testament to our team’s culture
and client centric focus. Our goal of having
the best trained people in the industry is
widely understood and well recognised by
our clients.
Customer Focused Innovation is one of our
strategic pillars and we continue to invest in
this area. One such example is the successful
trial run last year with Spark IoT, and where we
have now started rolling out fridge and freezer
sensors across our business. These sensors
help safeguard key products in our care
such as animal health vaccines, horticultural
pheromones, and deer velvet that must be
kept at set temperatures. By digitalising
the process, we reduce the cost of wastage
and provide our clients with greater quality
assurance.
During the period we introduced our self-
funded research and development (R&D)
model. We currently have a strong footprint
in horticultural R&D and will expand this to
the rural sector of our business, focusing on
systems, programmes, and product focused
R&D. Initial R&D trials have now been selected
and trial work has begun.
We commenced a refresh of the Retail and
Water strategy. The focus of the strategy is
to capitalise on the growth in market share,
providing the best products and high levels
of service and advice to clients in an ever-
changing landscape, and rearticulating our
goals over the next three years.
The focus of our marketing campaign this
year is on the value we add to our clients’
businesses, looking at the whole farm and
orchard approach taken by our Technical
Field and Horticultural Representatives. Client
testimonials are the main component of this
campaign, demonstrating the positive impact
our approach has on our clients and their
business operations.
We continue to invest in our store network
which further demonstrates our commitment
to rural New Zealand and supporting farmers
and growers.
During the period we
introduced our
R&D
self-funded
research and
development
(R&D) model.
6 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
Retail SuppliesFruitfed SuppliesWater & Irrigation

PGG Wrightson Technical Field
Representative, Jaimee Elder, discusses
plans for the coming season with
Chris Pont, Owner, Wainuka Run near
Otautau, Southland.
PGG Wrightson Technical Field
Representative, Tony Sanders, checks
the trough fittings in the new stock
water system with Philip Smith,
Farm Manager, Cairnhill Limited near
Becks, Central Otago.
PGG Wrightson Technical Field
Representative, Hamish McCallum,
tests the soil ahead of planting a
maize paddock with Brad Powell,
Owner, Ridgeline Farms near
Palmerston North,
Manawatū-Wanganui.
7 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023

Our Timaru Retail store and Water branch relocated to new
purpose-built buildings on a single site. The Geraldine Rural
Supplies store has also recently opened a new bulk warehouse
extension. These modernised buildings provide better customer
and working environments and improved flow of products
between the retail areas and bulk warehouses, improving
operational and safety outcomes. A number of other building
initiatives are currently in early stages, with work about to
commence on the new Ohakune Rural Supplies and Fruitfed
Supplies store, as well as a major upgrade of the retail area in our
Waimate store.
Rural Supplies
Ngā Whakaratonga Taiwhenua
The predicted impacts of the early onset of the El Niño dry season
across the country did not materialise through the spring period,
with a lot of rain for most areas during the critical spring months
and with a prevalence of cooler temperatures. This led to increased
grass cover and good feed reserves. The flow on effect is reduced
sales of stockfood and summer brassicas.
Our goal of having the best trained people in the sector is evident
in the growth of our Animal Health offering where we are taking
a proactive approach relating to the onset of drench resistance.
Drench resistance is accelerating and the financial impact on sheep
and beef farmers will be significant. PGW has proactively moved to
get ahead of this challenge and provide market leading support
and advice to our clients on this topic. We have begun building
the awareness of our frontline staff on the issue, increasing our
knowledge of how best to manage drench resistance through farm
management practices and build “toolboxes” that will allow our
teams to assist clients.
Fruitfed Supplies
Ngā Whakaratonga ā-Huawhenua
The result for the first half was impacted by Cyclone Gabrielle,
which occurred in February 2023. A number of our clients in
Gisborne and Hastings lost large areas of crop and therefore
required less product in the new season. Many clients lost their
entire seasons crop last year causing cash flow impacts. Due to
falling returns and the impact of the cyclone we have seen a
slowing of horticultural development over the last 12 months
as growers look to consolidate their existing businesses and
remediate properties.
Geraldine Rural Supplies new bulk
warehouse extension.
Returns in some sectors have been softer. The apple, avocado
and kiwifruit industries have experienced weaker demand and
declining returns, with prices for some crops at levels not seen
for several years. These falling returns have seen the amount
clients spend on some product lines reduce.
At the same time, we see land use change as some growers
diversify their portfolios and investing in other regions, increasing
opportunities across the core categories that we supply our
clients.
Water & Irrigation
Te Wai me te Whakamākūkū
PGW Water has continued to invest in specific field training for
our technicians. This has increased client referrals with new and
returning customers across our service branches due to our
team’s increased field operational skillset.
Some staff vacancies were difficult to fill at the beginning of the
period as we lifted our expectations of employee skillsets, but we
have started to see an increase in quality applicants.
Agritrade
Tauhokohoko Ahuwhenua
Agritrade, our wholesale business division, commenced a review
of its business strategy with a focus on areas that generate
value growth. The primary emphasis to date has been about
optimising the supply chain dynamics with a goal of reducing
customer order frequency and adding minimum order volumes.
This reduction enhances operational efficiency by reducing
operational overheads, greenhouse gas emissions and enhances
customer service. Additionally, the focus has extended to
identifying and addressing non-profitable products to ensure
that our inventory better aligns with market demands and
continues to contribute meaningfully to our revenue. These
refinements of our model aims to position our wholesale
business for sustained growth in the evolving landscape.
Tensions in the key Red Sea trade route are contributing
to longer shipping times and higher freight costs for some
products. Shipping companies are diverting trade from the
Red Sea and the Suez Canal. Supply chain pressures like those
seen during COVID-19 could return if the conflict continues for
product shipped via these routes.
PGG Wrightson Technical Field Representative, Belinda
Wilson, checks for weeds in the new grass with Matthew
Barclay, Lessee, Te Rata Farms near Hāwera, Taranaki.
8 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023

Our Agency group includes Livestock, Wool, and Real Estate. Agency delivered an
Operating EBITDA of $1.4 million for the first six months of the 2024 financial year, a
reduction of $2.2 million compared with the same period last year. Revenue was $81.6
million, down $3.1 million compared to the prior period.
returns were up
significantly

compared to the prior period,
reflecting the attractiveness of
the product to clients.
Livestock
Ngā Kararehe
High on-farm inflation, softer commodity
prices, and elevated interest rates have
led to subdued purchasing from farmers
which reduced volumes of livestock
being traded, particularly North Island
cattle and dairy. Poor lamb prices have
squeezed commission revenue, with
weaker Chinese demand and increased
Australian supply causing prices to fall.
Our strong relationships with our
clients contributed to maintaining our
market share throughout these tough
times. During the period we grew our
supply chain partnerships and increased
volumes.
GO-STOCK returns were up significantly
compared to the prior period, reflecting
the attractiveness of the product to
clients. It remains a popular product for
our clients, assisting them with their cash
management and allowing capital to be
used elsewhere.
bidr®’s growth in the first half of the
year was assisted by the installation of
weekly saleyard auctions at Stratford and
Taranaki, as well as an increase in the
number of on-farm hybrid auctions for
commercial sheep and beef in the North
Island. Many were inaugural sales and
a replication of the traditional on-farm
auction model in the South Island.
Despite a turbulent global situation, New
Zealand’s deer market is holding its own
and remaining profitable reflecting the
high-quality product. Our Velvet business
has continued to grow, with significant
new contracts agreed with both
local and international buyers. China
announced late in 2023 that imported
velvet will need to be dried before it
can be classified as a Traditional Chinese
Medicine. This will require a different
approach given that New Zealand
exports mainly frozen velvet which can
be more cost-effectively processed in
China and presents some uncertainty
for the 2024/25 season. Government
officials are engaged in constructive
discussions to have a classification and a
pathway that the industry is hopeful will
have potential longer-term benefits.
We progressed the roll-out of new
technology by improving the technical
information our reps can access on their
tablets in the field.
Wool
Wūru
The total number of wool bales sold
was ahead of the same period last year.
Although prices for strong wool remain
suppressed, it was encouraging to
note increases in prices compared to
last season. Top quality, well-prepared
crossbred fleeces command premiums.
Our market share especially in the fine
wool market has grown on the back of
profitable contracts offered to growers.
9 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
Agency group Rōpū umanga
LivestockWoolReal Estate

PGG Wrightson Area Livestock
Manager, Brad Osborne and National
bidr® Manager, Liam Beattie discuss
the latest market pricing from across
the country before inspecting cattle at
the Mahuta Herefords Annual Bull Sale
near Glen Murray, Waikato.
PGG Wrightson Livestock
Representative, Simon Luoni, inspects
a bull’s structure and temperament
ahead of the one-year bull sale at Te
Mania Angus near Cheviot,
North Canterbury.
PGG Wrightson Livestock Representative,
Sam Wright, sells a line of 2-tooth
Romdale ewes at the Stortford Lodge
Ewe Fair with Livestock Representatives
Brenton Giddens and Matt Lorck in
Hastings, Hawke’s Bay.
Photo credit: Suz Bremner, AgriHQ.
10 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023

4,000%
Wool Integrity™ online
store sales up approximately
We grew our wool contract business which links wool growers
with manufacturers domestically and internationally and provides
growers with surety of price. We saw increased enquiries from
domestic and international retail brands with a number of
overseas clients visiting. Their focus is to better understand the
supply chain with particular emphasis on the outlook for New
Zealand wool production and farming practices.
Our wool exporting subsidiary, Bloch & Behrens Wool (NZ)
Limited, increased its Wool Integrity NZ™ brand profile nationwide
collaborating with Hyundai Country Calendar and giving away
generous vouchers redeemable at the Wool Integrity store.
These initiatives increased the online sales and total orders, and
improved customer return rates.
Supporting the wool industry is important to our business. We
continue our sponsorship and support of the Wool in Schools
programme where two mobile interactive classrooms known as
“Wool Sheds” travel around the country promoting the virtues
of wool. The PGG Wrightson Vetmed National Shearing Circuit
commenced in October, with five rounds of competition across
the country.
Real Estate
Hokohoko Whenua
The New Zealand Real Estate market has endured a difficult
time. North Island sales in particular have been low with the
volume of transactions significantly back on the business
transacted in FY21 and FY22. However, during the period there
were four sales greater than $10 million in the South Island
and residential sales in the lower South Island have exceeded
expectations.
There is increased activity in dairy farms with higher levels than
those seen in the past few years. Orchards have seen an upturn
in interest with more properties poised to come on the market
in autumn. Within the rural sector the most challenged area is
sheep and beef farms where values look to be reset.
The Tauranga office relocated to new premises in Te Puna which
offers the benefits of a modern building and an increased brand
profile in the area.
PGG Wrightson Real Estate Salesperson, Jacqui Campion,
discusses the potential of the large property near Palmerston
North with Jan Davis, Owner, Kyrewood, Manawatu.
PGG Wrightson Livestock National Genetics Manager,
Callum Stewart, discusses breeding lines, productivity
and temperament with Lindsay Johnstone, owner of
Ranui Angus near Kai Iwi, Wanganui.
PGG Wrightson Wool Operations Representative, Hine Mullany
and PGG Wrightson Wool Representative, Doug McKay inspect
the condition of the wool with Stew Gunn, Farm Manager,
Brooksdale Station near Springfield, Canterbury.
11 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023

Cashflow and Debt
Te Kapewhiti me te Nama
Cashflow from operating activities saw
a $6.8 million outflow; a $28.1 million
improvement compared to the prior
comparative period.
Although Operating EBITDA was $11.2
million lower than the comparative
period the build in working capital for
the Group of $36.1 million was $33.4
million lower than the prior six-month
period. The Group received good
collections from customers with overdue
rates lower than 31 December 2022. In
addition, income tax payments were also
$7.7 million lower than the prior period,
which included income tax payments on
the record FY22 financial performance.
Financing costs were $1.4 million higher
as a consequence of higher interest rates.
Capital expenditure was $6.9 million,
an increase of $0.7 million versus
31 December 2022 and included
investment in our Business Improvement
Programme.
The Group paid the FY23 final dividend
of 10 cents per share, or $7.8 million in
October 2023.
Net interest-bearing debt was up $1.4
million compared to 31 December 2022
at $96.9 million.
The Group renewed and extended its
bank facilities in December 2023. The
renewed facilities have a term ending
in February 2026 and now provide
total facility limits of $185.0 million, an
increase of $25.0 million allowing for
future growth opportunities including
GO-STOCK.
Distributions
Hua pakihi ki te hunga whai pānga
Given the current challenges faced in the
sector and broader economy and the
impacts these have had on our business,
the PGW Board has determined not
to pay an interim dividend. The Board
considers that this is an appropriate and
prudent measure to take at the present
time. At a broader level the PGW Board
is also assessing its ongoing dividend
payout ratio given the need to strike
the right balance between sustainable
distributions for shareholders whilst
retaining sufficient earnings in the best
interests of the company to allow it to
effectively execute upon its strategy.
People and Safety
Ngā Tāngata me te Haumarutanga
As a business we are determined to
improve our safety performance. In
advancing our Health, Safety and
Wellbeing (HSW ) strategy we continue
to focus on our key critical risks whilst
improving our team members HSW skills,
competence, and mindsets. To assist
with this a new HSW Fundamentals
training programme has been developed
to provide all team members with the
fundamentals of how we view safety at
PGW alongside the key roles played as an
organisation, and as team members.
We have also made progress in reducing
risk across three of our highest risk areas
(Working with Animals, Driving Vehicles
and Mobile Plant) by ensuring those
closest to these risks are intimately
involved in designing relevant safety
controls.
We continue to reap the benefits of
investing in our people through our
Academy, Technical College, and Sales
Training programmes. Alongside our
well-regarded leadership capability
development programme, we have
deployed a series of roadshows to
enhance management skills across our
leaders.
Our strong employment brand sees
us continue to attract and retain high
calibre team members.
Business Improvement Programme
Hōtaka Whakapiki Pakihi
We continue with the implementation of
significant investment (both operating
expenditure and capital expenditure)
in our company-wide Business
Improvement Programme to simplify
PGW’s IT systems. This programme will
simplify our technical IT environment and
standardise business processes, providing
benefits of greater efficiency, flexibility
and better utilisation of our data.
During the period Batch Tracking for
some products and Retail Pricing projects
were completed. A comprehensive batch
tracking service provides traceability
allowing us to trace the source, origin, or
production conditions of raw materials
and final products and differentiates
us from our competitors and will be
extended to our full range in the next
financial year. We updated our retail
pricing system to Microsoft D365, a
cloud-based portfolio, which improves
operational efficiency.
Max Rewards Loyalty Programme
Whiwhinga Mōrahi pono hōtaka
It has been just over one year since the
Max Rewards loyalty programme was re-
launched, and the team is pleased to see
the positive impacts of the programme
with new members joining, current
members being retained, and high
engagement on redemptions.
The Max Rewards stand has been a
popular feature in our PGW marquees at
National Fieldays held at Mystery Creek in
Waikato and the New Zealand Agricultural
Show in Christchurch, Canterbury.
The team will delve further into member
acquisition, member retention, further
opportunities with internal stakeholders,
programme development, and
implementing new reporting over the
next 12 to 18 months.
12 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
Loyalty Programme
Loyalty benefits
PGG Wrightson account holders can
access Max Rewards membership benefits
including earning Max Rewards points and
exclusive extras.
Reward yourself
Points can be redeemed from the Max
Rewards catalogue including electronics,
homewares, clothing, appliances, sports
gear, vouchers and more.
Your loyalty
rewarded
with the Max Rewards loyalty programme
Earn points
Points can be earned on selected
transactions with Rural Supplies, Fruitfed
Supplies, Livestock, Velvet, Wool, Water,
Ballance Fertiliser and Meridian Energy.
Tiers
Bronze, Silver, Gold and Platinum members
receive a range of tier benefits – just for
earning Max Rewards points.
maxrewards.pggwrightson.co.nz
continues to attract new members,
current members retained and high
engagement on redemptions

Garry Moore
Chair
Stephen Guerin
Chief Executive Officer
Governance changes
Ngā Panonitanga Mana Whakahaere
The PGW Board had a recent change to
its membership. U Kean Seng stepped
down as Acting Chair on 16 February
2024, while remaining a Director and
a member of the Audit Committee.
Independent Director and a member
of the Audit Committee, Garry Moore
assumed the role of Chair.
Outlook and Guidance Update
Whakahoutanga Matapae me te
Tohutohu
PGW’s outlook remains cautious with
the agricultural sector and international
marketplace facing various challenges
including the impact of El Niño
conditions, lower meat pricing (in
particular sheep and lamb), higher
input costs, softer commodity pricing
for primary exports, and subdued
demand from our largest export market,
China. The carry over impacts of
Cyclone Gabrielle together with supply
chain issues associated with offshore
conflicts and higher interest costs are all
contributing to temper the short-term
outlook and prospects.
Sheep meat prices are at their lowest
range in a decade with high volumes of
Australian meat and weaker international
demand. Whilst pressure on sheep
pricing is anticipated to continue in the
near term, there is an expectation we
will see improved trading across the
major stock types as the countryside
dries and the current abundance of grass
diminishes. Beef prices are expected to
remain stable. Although beef farmers are
more optimistic, there is concern about
the year ahead which may translate into
reduced investment.
Rising dairy prices have improved dairy
farmer confidence in recent weeks with
Global Dairy Trade auctions recording
higher prices and increasing payout
expectations. The removal of the
remaining dairy tariffs on dairy exports
to China allows New Zealand products
to enter China duty free and providing
an advantage over some international
export competitors.
The outlook for horticulture is positive
with good kiwifruit, apple and pear
crops expected to be harvested.
Kiwifruit is predicted to deliver
improved quality fruit with higher
volumes compared to last year. Wine
exports are expected to reduce this
season, then increase next season.
Overall, horticulture is anticipated to
produce stronger export volumes from
this year’s harvest without the impact of
events such as Cyclone Gabrielle, with
further growth into next year.
We see some positive signs in the real
estate market as we move into 2024.
Sentiment is improving, and current
indications suggest that sales levels will
grow in the months ahead, with more
orchards poised to come on the market
in autumn.
The NZ - EU Free Trade Agreement will
progressively come into effect during
2024 providing improved access to the
European markets.
Whilst the factors impacting market
sentiment are mixed and slightly
pessimistic in the near term, we are
confident that PGW remains in a strong
position to capitalise on opportunities
as they arise and maintain the positive
performance trend that PGW has
demonstrated over the past five years.
The longer-term prospects for the New
Zealand primary sector remain strong
with the Ministry for Primary Industries
projecting steady growth.
While noting the green shoots of a
recovery in our clients’ confidence in
the sector, we remain cautious as to
on-farm and on-orchard spend. We see
a period of debt reduction by clients
given the recent commodity pricing
cycle and the ongoing recovery costs
related to Cyclone Gabrielle for North
Island clients.
On balance, we remain cautious and
expect to see subdued activity over the
remainder of the financial year. Given
the mixed signals in the macroeconomic
environment we have revised our
forecast Operating EBITDA guidance for
the year to 30 June 2024 to around $50
million.
Acknowledgements
Ngā whakamihi
On behalf of the Board and Executive
team, we extend our gratitude to our
nationwide team of passionate people
for their dedication and for delivering
exceptional service every day.
We appreciate our suppliers who work
with us to navigate ongoing challenging
supply chains from some markets and to
enable us to meet our clients’ needs.
Our clients’ enduring support has been
pivotal in our success for over 170 years,
and we thank you for trusting us. We
appreciate your loyalty and fostering the
enduring relationships we continue to
build over time that allow us to better
understand your businesses and improve
on our offerings. We will continue to
work hard to exceed your expectations
and deliver outstanding service.
To our shareholders, we recognise your
commitment to PGW. We continue to
focus on executing our strategy and
delivering sustained value.
13 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023

Sustainability
Toitūtanga
PGW upholds its commitment to sustainability through the transparency of regular
reporting. Over the past half-year, we have made considerable progress on a number of the
objectives in the Sustainability Strategy. Below is a list of highlights from the period.
Climate Change
To address the current and future
business impacts related to climate
change, we have assessed three unique
climate change scenarios. The scenario
analysis exercise looked across the whole
business and assessed the potential
impacts at a local level. Examples of risks
and opportunities noted through this
exercise includes the impacts of land use
change, supply chain disruption due to
extreme weather events, and regulatory
and customer requirements. Undertaking
this process ensures that PGW continue
to exceed stakeholder expectations
and improve its resiliency to a changing
climate.
Greenhouse Gas Emissions
To address our operational emissions
footprint, the first tranche of petrol-
hybrids has begun rolling out to our fleet
as leases are renewed. Vehicles are an
essential tool for staff to get to remote
locations, to ensure we can provide
timely expertise through technical staff
and ensuring our representatives are
familiar with the stock, wool or real estate
that is brought to market. Addressing the
fleet is fundamental for us to meet our 30
per cent reduction target in operational
emissions by FY30.
Alongside emissions reduction activities
within the fleet , PGW is ensuring all
premises are supplied with 100 per
cent renewable electricity across New
Zealand. PGW purchases Certified
Renewable Energy through our partner,
Meridian Energy – issuing Renewable
Energy Certificates to PGW based on the
amount of electricity used on an annual
basis. The renewable energy certificate
process is managed through the New
Zealand Energy Certificate System.
To understand the complete picture of
the greenhouse gas emissions footprint
within operations, we are actively
working on the calculation of scope 3
emissions upstream and downstream
within the business value chain. In the
past six months we have been reaching
out to key partners and suppliers to
collect emissions information. This
process has been challenging with
various levels of data availability from
suppliers, reflecting a space that is
maturing for a lot of organisations in
New Zealand.
The 2023 PGG Wrightson
Academy cohort admiring the
view after a day of on-farm
activities at Wilden Station,
Moa Flat, Otago.
14 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023

Partnerships
As a signatory to the Safer Farms, Farm
Without Harm strategy, we supported
the “Half Arsed Stops Here” campaign
which targeted the protection of people
from preventable harm and making
farms safer places to work and live. PGW
CEO, Stephen Guerin, joined the Safer
Farms board as he strongly believes that
everyone should come home safely at
the end of any workday. The messages
and actions of Safer Farms align with
the messages and actions with the
internal PGW family, allowing for shared
conversation with our team and clients.
The Agrecovery Product Stewardship
Scheme for Woven PP bags launched
during the period. PGW is one of
the 21 founding brand members of
Agrecovery, and we understand our
responsibility to address the waste
associated with products sold in store.
We take a responsible position by
voluntarily participating as a brand
owner with Fruitfed Supplies, PGW,
Valagro, and Agritrade brands being
packaged in woven PP bags. Additionally,
PGW provides drop-off capability at 53
sites across the country. The woven PP
programme helps farmers to manage
their farm waste and reduce burning
or burying plastic waste on farm. We
continue to work with suppliers of
products to ensure as many products
as possible are sold in packages and
containers that can either be recycled
or reused.
Within the period PGW become a
signatory of the Biosecurity Pledge
with Biosecurity New Zealand. This
is a Ministry for Primary Industries /
Manatū Ahu Matua lead framework
for managing the risk of unwanted
pests and disease incursions into New
Zealand. This partnership aims to help all
businesses take a proactive approach to
their biosecurity practices. Biosecurity is
a major risk to New Zealand’s economy
and to our business continuity. PGW
has strong biosecurity practices in
place to mitigate risks, signing the
Biosecurity Pledge further reiterates our
commitment to biosecurity governance
and helps in setting expectations in the
supply chain.
PGW has been a member with EcoVadis
since 2019, the world’s largest supplier
sustainability rating tool. As part of
this membership, we undertook a
sustainability performance scorecard
assessment in late 2023, which includes
an independent, third-party review. In
completing this process, we achieved a
significant improvement in the overall
sustainability rating, putting it above
the agricultural industry benchmark
globally. This result was a 40 per cent
improvement over the previous score
and showing considerable progress,
but also providing a number of areas for
improvement.
Look Ahead
Looking ahead, we will further
strengthen our sustainability governance
processes, completing our first Climate
Statement under the climate-related
disclosures legislation and produce
our third GRI Standards aligned annual
report.
PGG Wrightson Store Manager, Rex Madden reviews maize sales
numbers and discusses a number of new potential customer
opportunities with PGG Wrightson Technical Field Representative, Scott
Daubney at the Tatuanui Rural Supplies store, Tatuanui, Waikato.
Fruitfed Supplies National Manager, Duncan
Fletcher, with Young Horticulturist of the Year 2023
award winner, Meryn Whitehead.
15 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023

16 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
The Interim Consolidated Financial
Statements contained on pages 17–29
have been approved by the Board of
Directors on 26 February 2024.
Garry Moore
Chair
Sarah Brown
Director and Audit Committee Chair
Fruitfed Supplies Area Sales
Manager, Blair Murdoch, discusses
the high quality of the strawberries
with Kate Hobson, Owner, Hauora
Produce near West Melton,
Canterbury.
Key Financial Disclosures
Ngā Whakapuakanga Pūtea Hira
PGG WRIGHTSON LIMITED
For the six months ended 31 December 2023 | Mō ngā marama e ono ki te 31 o Tīhema 2023

17 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
KEY FINANCIAL DISCLOSURES
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2023 JUN 2023 DEC 2022
NOTE $000 $000 $000
Operating revenue 560,878 975,692 585,756
Cost of sales (425,247) (722,849) (441,463)
G
ross profit 135,631 252,843 144,293
Other income 124 502 39
Employee expenses (70,634) (137,561) (69,677)
O
ther operating expenses (28,503) (54,590) (26,811)
Operating EBITDA 36,618 61,194 47,844
Non-operating gains 151 327 333
I
mpairment and fair value gains – 51 51
D
epreciation and amortisation expense
(14,522)

(28,063)

(13,729)
EBIT
22,247

33,509

34,499

Net interest and finance costs 1 (4,720) (9,573) (4,957)
P
rofit before income tax
17,527

23,936

29,542
Income tax expense
(4,789)

(6,418)

(8,384)
Profit net of income tax 12,738 17,518 21,158
Net profit after tax attributable to Shareholders of the Company 12,738 17,518 21,158
B
asic & diluted earnings per share (EPS)
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2023 JUN 2023 DEC 2022
$ $ $
Basic & diluted EPS 2 0.169 0.232 0.280
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
Interim Consolidated Statement of Profit or Loss
For the six months ended 31 December 2023

18 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
Interim Consolidated Statement of Other Comprehensive Income
For the six months ended 31 December 2023
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2023 JUN 2023 DEC 2022
$000 $000 $000
Net profit after tax attributable to Shareholders of the Company 12,738 17,518 21,158
Items that will never be reclassified to profit or loss
Changes in fair value of equity instruments
– 9 –
Remeasurements of defined benefit liability (1,096) 1,059 110
Tax on remeasurements of defined benefit liability 307 (297) (31)
O
ther comprehensive income/(loss) (789) 771 79
Total comprehensive income for the period attributable
to Shareholders of the Company 11,949 18,289 21,237
T
he accompanying notes form an integral part of these consolidated financial statements.

19 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
Interim Segment Report
For the six months ended / as at 31 December 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.
–
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 costs allocation
The Group allocates certain corporate costs to an operating segment where they can be directly attributed to that segment or using the following
methods:
–
IT hardware, support, licence and other costs are allocated on a per user basis.
–

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

20 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
Interim Segment Report (continued)
For the six months ended / as at 31 December 2023
C. Operating segment information
AGENCY RETAIL & WATER OTHER (NON OPERATING) TOTA L
UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
D
EC 2023
J
UN 2023
D
EC 2022
D
EC 2023
J
UN 2023
D
EC 2022
D
EC 2023
J
UN 2023
D
EC 2022
D
EC 2023
J
UN 2023
D
EC 2022
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Sales revenue 40,430 87,556 38,078 471,471 765,661 487,909 868 1,286 891 512,469 854,503 526,878
Commission revenue 36,583 93,692 43,360 62 92 60 50 95 46 36,695 93,879 43,466
C
onstruction contract revenue
–

–

–

6,474

18,031

11,483

–

–

–

6,474

18,031

11,483
I
nterest revenue on Go livestock receivables 4,003 6,573 2,736 – – – – – – 4,003 6,573 2,736
I
nterest revenue on overdue debtor accounts
333

523

279

387

1,151

378

11

20

10

731

1,694

667
Sublease income
240 459 217 207 363 178 59 190 131 506 1,012 526
Total external operating revenues 81,589 188,803 84,670 478,301 785,298 500,008 988 1,591 1,078 560,878 975,692 585,756
Operating EBITDA

1,431

16,068

3,643

39,962

54,129

48,918

(4,775)

(9,003)

(4,717)

36,618

61,194

47,844
Non–
operating gains/(losses)
24

335

328

37

83

37

90

(91)

(32)


151
327

333
Impairment and fair value gains/(losses) – – – – – – – 51 51 – 51 51
D
epreciation and amortisation expense
(4,771)

(8,787)

(4,301)

(8,214)

(16,267)

(8,017)

(1,537)

(3,009)

(1,411)

(14,522)

(28,063)

(13,729)
EBIT (3,316) 7,616 (330) 31,785 37,945 40,938 (6,222) (12,052) (6,109) 22,247 33,509 34,499
Net int
erest and finance costs
(1,035)

(3,857)

(904)

(2,019)

(3,779)

(2,969)

(1,666)

(1,937)

(1,084)

(4,720)

(9,573)

(4,957)
P
rofit/(loss) before income tax
(4,351)

3,759

(1,234)

29,766

34,166

37,969

(7,888)

(13,989)

(7,193)

17,527

23,936

29,542
Income tax benefit/(expense) 1,154 (1,170) 374 (8,412) (9,707) (10,781) 2,469 4,459 2,023 (4,789) (6,418) (8,384)
N
et profit/(loss) after tax
(3,197)

2,589

(860)

21,354

24,459

27,188

(5,419)

(9,530)

(5,170)

12,738

17,518

21,158
T
otal segment assets
154,251

202,490

163,080

449,395

263,221

470,419

38,701

30,817

25,360


642,347
496,528

658,859
Total segment liabilities (54,252) (82,866) (58,374) (286,169) (159,709) (295,031) (128,479) (84,692) (123,936) (468,900) (327,267) (477,341)
T
he accompanying notes form an integral part of these consolidated financial statements.

21 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
Interim Consolidated Statement of Cash Flows
For the six months ended 31 December 2023
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2023 JUN 2023 DEC 2022
NOTE $000 $000 $000
Cash flows from operating activities
Cash was provided from:
Receipts from customers
441,633 979,878 452,487
Dividends received 1 5 2
Interest received
5,063

8,743

3,595
446,697

988,626

456,084
C
ash was applied to:
Payments to suppliers and employees (446,690) (940,906) (477,892)
Interest paid (3,367) (4,565) (1,994)
I
nterest paid on lease liabilities (1,920) (3,800) (1,908)
Income tax paid
(1,553)

(13,846)

(9,260)
(453,530) (963,117) (491,054)
Net cash inflow/(outflow) from operating activities
(6,833)

25,509

(34,970)
C
ash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment and assets held for sale 147 579 535
Proceeds from disposal of investments – 9 –
Dividend received from jointly controlled entity 67 – –
R
epayment of loan from jointly controlled entity – – 32
214 588 567
Cash was applied to:
Purchase of property, plant and equipment
(1,561)

(6,453)

(799)
P
urchase of intangibles
(5,347)

(10,723)

(5,421)
L
oan provided to equity accounted investee
–

–

(100)
A
dvance to jointly controlled entity
(20)

(170)

–
(6,928)

(17,346)

(6,320)
N
et cash inflow/(outflow) from investing activities
(6,714)

(16,758)

(5,753)
C
ash flows from financing activities
Cash was provided from:
Increase in external borrowings – working capital debt

45,040

32,460

60,500
45,040

32,460

60,500
C
ash was applied to:
Dividends paid to shareholders

(7,763)

(21,712)

(12,403)
R
epayment of external borrowings – long–term debt
(4,810)

–

–
Repayment of principal portion of lease liabilities
(10,256)

(19,532)

(9,566)
(22,829)

(41,244)

(21,969)
N
et cash inflow/(outflow) from financing activities
22,211

(8,784)

38,531
Net incr
ease/(decrease) in cash held
8,664

(33)

(2,192)
Opening cash

4,643

4,676

4,676
C
ash and cash equivalents
3

13,307

4,643

2,484
T
he accompanying notes form an integral part of these consolidated financial statements.

22 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
Reconciliation of Profit After Tax
With Net Cash Flow from Operating Activities
For the six months ended 31 December 2023
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2023 JUN 2023 DEC 2022
$000 $000 $000
Profit after taxation 12,738 17,518 21,158
Add/(deduct) non-cash/non-operating items:
Depreciation and amortisation 14,522 28,063 13,729
I
mpairment and fair value gains – (51) (51)
Bad debts written off (net) 145 451 178
L
oss/(profit) on sale of assets/investments and lease terminations (111) (382) (338)
Foreign exchange loss/(gain) (442) (22) (167)
Deferred tax expense/(benefit) 2,465 1,658 (197)
D
efined benefit expense/(gain) (40) 9 (44)
Other non-cash/non-operating items (117) 71 272
Add/(deduct) movement in working capital items:
Change in inventories (22,588) (5,613) (27,150)
Change in accounts receivable, Go livestock receivables and prepayments (116,400) 17,314 (128,582)
Change in trade cr
editors, provisions and accruals
98,916

(21,533)

85,170
Change in other current assets/liabilities
3,308

(2,878)

1,740
Add/(deduct) movement in taxation items:
Change in income tax payable/receivable 771 (9,096) (688)
Net cash inflow/(outflow) from operating activities (6,833) 25,509 (34,970)
T
he accompanying notes form an integral part of these consolidated financial statements.

23 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
Interim Consolidated Statement of Financial Position
As at 31 December 2023
UNAUDITED AUDITED UNAUDITED
DEC 2023 JUN 2023 DEC 2022
NOTE $000 $000 $000
ASSETS
Current
Cash and cash equivalents
3 13,307 4,643 2,484
Shor
t-term derivative assets 474 367 384
Trade and other receivables 294,198 144,656 321,851
Go livestock receivables 3 40,578 71,453 42,470
I
ncome tax receivable 415 1,186 –
Inventories 130,769 107,533 129,717
O
ther current assets 1,316 3,546 1,188
Total current assets 481,057 333,384 498,094
Non-current
Long-term derivative assets
331

–

85
D
eferred tax asset
6,562

8,721

10,842
I
nvestments in equity accounted investees
376

320

102
A
dvance to equity accounted investees
20

170

–
G
o livestock receivables
3

158

2,570

531
O
ther investments
508

340

411
I
ntangible assets
24,692

20,214

16,193
R
ight-of-use assets
4

83,451

84,068

88,785
P
roperty, plant and equipment
5

45,192

46,741

43,816
T
otal non-current assets
161,290

163,144

160,765
T
otal assets
642,347

496,528

658,859
LIABILITIES
C
urrent
Working capital debt 3 65,000 19,960 48,000
Short-term derivative liabilities 433 888 665
A
ccounts payable and accruals
265,312

164,107

273,959
Income tax payable – – 7,222
Short-term lease liabilities
20,189

18,586

18,863
T
otal current liabilities 350,934 203,541 348,709
N
on-current
Long-term debt
3

45,190

50,000

50,000
L
ong-term derivative liabilities
–

112

53
L
ong-term lease liabilities
67,899

69,769

73,798
O
ther long-term liabilities
2,745

2,769

2,809
D
efined benefit liability
2,132

1,076

1,972
T
otal non-current liabilities
117,966

123,726

128,632

Total liabilities
468,900

327,267

477,341
EQUIT
Y
Share capital
372,318 372,318 372,318
R
eserves
15,369

16,158

13,052
R
etained earnings
(214,240)

(219,215)

(203,852)
T
otal equity attributable to Shareholders of the Company
173,447

169,261

181,518
T
otal liabilities and equity
642,347

496,528

658,859
T
he accompanying notes form an integral part of these consolidated financial statements.

24 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
PGG Wrightson Technical Field
Representative, Jeff McFarlane,
discusses the preventive fly treatment
for the ewes and the first lamb drench
with Frazer Allan, Owner, Glenure
Station near Balfour, Southland.
Additional Financial Disclosures
Ngā Whakapuakanga Pūtea Tāpiri
Including Notes to the Consolidated Financial Statements for the six months ended 31 December 2023
Tae atu ki ngā tuhipoka ki Ngā Tōpūtanga Tauākī Ahumoni Taupua mō te ono marama ki te 31 o Tīhema 2023
PGG WRIGHTSON LIMITED

25 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
PGG WRIGHTSON LIMITED
Notes to the Interim Consolidated Financial Statements
For the six months ended 31 December 2023
ADDITIONAL FINANCIAL DISCLOSURES
1 NET INTEREST AND FINANCE COSTS
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2023 JUN 2023 DEC 2022
$000 $000 $000
Interest income 328 485 201
Interest funding expense
Bank interest on loans and overdraft
(3,367) (4,545) (1,974)
Other interest expense - (20) (20)
Bank facilit
y fees (485) (956) (470)
(3,852) (5,521) (2,464)
Net interest income/(expense) excluding interest on lease liabilities (3,524) (5,036) (2,263)
I
nterest on lease liabilities (1,920) (3,800) (1,908)
Foreign exchange gain/(loss)
Net gain/(loss) on foreign denominated items

(281)

300

(134)
Fair value gain/(loss) on foreign exchange derivatives 1,005 (1,037) (652)
724 (737) (786)
Net interest and finance income/(expense) (4,720) (9,573) (4,957)
2 EARNINGS PER SHARE (EPS) AND NET TANGIBLE ASSETS (NTA)
UNAUDITED AUDITED UNAUDITED
6
MONTHS TO
1
2 MONTHS TO
6
MONTHS TO
D
EC 2023
J
UN 2023
D
EC 2022
000 000 000
Issued ordinary shares at the end of reporting period 75,484 75,484 75,484
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2023 JUN 2023 DEC 2022
$000 $000 $000
Profit net of tax attributable to Shareholders of the Company 12,738 17,518 21,158
Net tangible assets
Total assets

642,347

496,528

658,859
T
otal liabilities
(468,900)

(327,267)

(477,341)
less
intangible assets
(24,692)

(20,214)

(16,193)
less
deferred tax asset
(6,562)

(8,721)

(10,842)
N
et tangible assets
142,193

140,326

154,483
UNAUDITED AUDITED UNAUDITED
6
MONTHS TO
1
2 MONTHS TO
6
MONTHS TO
DEC 2023 JUN 2023 DEC 2022
$ $ $
Basic EPS 0.169 0.232 0.280
NTA per issued ordinary shares at the end of period 1.884 1.859 2.047

26 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
PGG WRIGHTSON LIMITED
Notes to the Interim Consolidated Financial Statements (continued)
For the six months ended 31 December 2023
ADDITIONAL FINANCIAL DISCLOSURES
3 CASH AND FINANCING FACILITIES
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2023 JUN 2023 DEC 2022
$000 $000 $000
Cash and cash equivalents 13,307 4,643 2,484
Current financing facilities (65,000) (19,960) (48,000)
T
erm financing facilities (45,190) (50,000) (50,000)
Net interest-bearing (debt)/cash and cash equivalents (96,883) (65,317) (95,516)
G
o livestock receivables
40,736

74,023

43,001
N
et interest-bearing (debt)/cash and cash equivalents
after adjusting for Go livestock receivables (56,147) 8,706 (52,515)
Financing facilities
The Company has a syndicated bank facility agreement. The syndicated facilities provide the following:
–
Term debt facilities of up to $90.00 million maturing on 6 December 2024. This facility had $45.19 million drawn at 31 December 2023 (30 June
2023: $50.00 million drawn, 31 December 2022: $50.00 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 $65.00
million drawn at 31 December 2023 (30 June 2023: $19.96 million drawn, 31 December 2022: $48.00 million drawn).
The syndicated facilities fund the general activities of the Group, the seasonal fluctuations in working capital, and the Go livestock receivables.
The Company has granted a general security deed and mortgage over all its wholly-owned New Zealand assets to a security trust. Bank of New
Zealand acts as facility agent and security trustee for the banking syndicate, which comprises Bank of New Zealand, Cooperatieve Rabobank U.A.
(New Zealand branch) and Westpac New Zealand Limited. The agreement contains various financial covenants and restrictions that are standard
for facilities of this nature, including maximum permissible ratios for debt leverage and operating leverage, together with limits for Go receivables,
capital expenditure and asset disposals.
The syndicated facility agreement allows the Group, subject to certain conditions, to enter into additional facilities outside of the Company's
syndicated facility. The additional facilities are guaranteed by the security trust. These facilities amounted to $6.77 million as at 31 December 2023.
–
O
verdraft facilities of $3.00 million. This facility was undrawn at 31 December 2023 (undrawn at 30 June 2023, undrawn at 31 December 2022).
– Guarantee, letters of credit and trade finance facilities of $3.77 million.
On 22 December 2023, the syndicated bank facility agreement was amended and restated with an effective date of 19 January 2024. The amended
and restated facility subsequently took effect from 19 January 2024 to provide the following:
–

T
erm debt facilities of up to $100.00 million maturing on 27 February 2026.
–
Working capital facilities of up to $85.00 million maturing on 27 February 2026.
Under the amended and restated agreement, the Company continues to grant 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 amended and restated
agreement contains various financial covenants and restrictions that are standard for facilities of this nature, including maximum permissible ratios
for debt leverage and operating leverage, together with limits for Go receivables, capital expenditure and asset disposals from its effective date.
4 RIGHT-OF-USE ASSETS
Additions, modifications & reassessments
During the period to 31 December 2023, the Group had lease additions of $4.90 million (30 June 2023: $7.60 million, 31 December 2022: $3.24
million). Lease modifications and reassessments resulted in an increase in right-of-use assets of $5.75 million (30 June 2023 Increase: $4.25 million,
31 December 2022 Increase: $1.40 million).
Terminations
During the period to 31 December 2023, the Group had lease terminations which resulted in a reduction in right-of-use assets of $0.61 million (30
June 2023: $0.41 million, 31 December 2022: $0.01 million).

27 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
PGG WRIGHTSON LIMITED
Notes to the Interim Consolidated Financial Statements (continued)
For the six months ended 31 December 2023
ADDITIONAL FINANCIAL DISCLOSURES
5 PROPERTY, PLANT AND EQUIPMENT
Acquisitions
During the period to 31 December 2023, the Group acquired assets with a cost of $1.56 million (30 June 2023: $6.51 million, 31 December 2022:
$0.86 million).
Disposals
The Group disposed of assets with a net book value of $0.70 million during the period to 31 December 2023 (30 June 2023: $0.25 million, 31
December 2022: $0.10 million), resulting in a gain on disposal of $0.07 million (30 June 2023 Gain: $0.32 million, 31 December 2022 Gain: $0.34
million).
6 CONTINGENT LIABILITIES
A. PGG Wrightson Max Rewards Loyalty Programme
The Group recognises a provision for the expected level of points redemption from the PGG Wrightson Max Rewards Loyalty Programme. As at 31
December 2023, the balance of live points which does not form part of the recognised provision total $0.08 million (30 June 2023: $0.08 million; 31
December 2022: $0.08 million). Losses are not expected to arise from this contingent liability.
B. Contingent liabilities
The Group may receive 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 obligation in respect of these claims or potential
claims cannot be estimated with sufficient reliability.
7 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 is 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.
8 SUBSEQUENT EVENTS
Takaka store fire and insurance recovery
On 11 January 2024, the Takaka Rural Supplies store was signficantly damaged by fire. The fire resulted in $0.52 million charged to cost of sales in
January 2024 for the impairment of damaged inventory and associated disposal costs. A further $0.08m of property, plant and equipment was
de-recognised in January 2024 due to the fire. The Group is working with it's insurers and it is expected that these claims will be confirmed by 30
June 2024.

28 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
PGG WRIGHTSON LIMITED
Notes to the Interim Consolidated Financial Statements (continued)
For the six months ended 31 December 2023
ADDITIONAL FINANCIAL DISCLOSURES
9 REPORTING ENTITY
PGG Wrightson Limited (the "Company") is a company domiciled in New Zealand and registered under the Companies Act 1993 in New Zealand.
The Company's registered office is at 1 Robin Mann Place, Christchurch. The Company is listed on the New Zealand Stock Exchange and is an FMC
Entity for the purposes of the Financial Markets Conduct Act 2013.
The interim consolidated financial statements of PGG Wrightson Limited for the six months ended 31 December 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.
10 BASIS OF PREPARATION
Statement of compliance
These interim consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
("NZ GAAP"). They comply with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board,
the New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable Financial Reporting Standards as
appropriate for a Tier 1 for-profit entity, and in particular NZ IAS 34 Interim Financial Reporting.
These interim consolidated financial statements do not include all of the information required for full annual consolidated financial statements.
Unless otherwise specified, the same accounting policies and methods of computation are followed in the interim consolidated financial
statements as applied in the Group's latest annual audited consolidated financial statements.
These interim consolidated financial statements were approved by the Board of Directors on 26 February 2024.
Aotearoa New Zealand Climate Standards
The External Reporting Board of New Zealand issued three Climate Standards that set requirements for: Climate-related Disclosures (Aotearoa
New Zealand Climate Standard 1 (NZ CS 1)); First-time adoption of Aotearoa New Zealand Climate Standards (NZ CS 2); and General Requirements
for climate-related Disclosures (NZ CS 3). These Climate Standards are effective from 1 January 2023, with mandatory assurance required on
the Greenhouse Gas emissions to be included in the Climate Statements for the Group’s 2025 Annual Report. The Group will adopt the Climate
Standards for the year ended 30 June 2024 and may apply adoption provisions permitted under the standards. For the 2023 financial year
voluntary Greenhouse Gas emissions disclosures were prepared that followed the principles outlined in the Greenhouse Gas Protocol and ISO
14064-1:2018.
Standards issued but not yet effective
A number of new standards and interpretations are not yet effective for the period ended 31 December 2023 and have not been applied in
preparing these interim consolidated financial statements. These standards are not expected to have a material impact on the Group's financial
results.

29 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
Interim Consolidated Statement of Changes in Equity
For the six months ended 31 December 2023
REALISED
CAPITAL AND DEFINED

SHARE REVALUATION BENEFIT PLAN FAIR VALUE RETAINED TOTAL
CAPITAL RESERVES RESERVE RESERVE EARNINGS EQUITY

$000 $000
$000

$000
$000
$000
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
–

–

–

–

21,158

21,158
O
ther comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax

–

–

79

–

–

79
T
otal other comprehensive income
–

–

79

–

–

79
T
otal comprehensive income for the period
–

–

79

–

21,158

21,237
T
ransactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders
– – – – (12,403) (12,403)
T
otal contributions by and distributions to shareholders – – – – (12,403) (12,403)
B
alance at 31 December 2022
372,318

24,662

(9,187)

(2,423)

(203,852)

181,518
Balance at 1 J
anuary 2023 372,318 24,662 (9,187) (2,423) (203,852) 181,518
Total comprehensive income for the period
Profit or loss
–

–

–

–

(3,640)

(3,640)
O
ther comprehensive income
Changes in fair value of equity instruments



–

–

–

9

–

9
D
efined benefit plan actuarial gain/(loss), net of tax
–

–

683

–

–

683
T
otal other comprehensive income
–

–

683

9

–

692
T
otal comprehensive income for the period
–

–

683

9

(3,640)

(2,948)
T
ransactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders
– – – – (9,309) (9,309)
T
otal contributions by and distributions to shareholders
–

–

–

–

(9,309)

(9,309)
T
ransfer to retained earnings – – – 2,414 (2,414) –
B
alance at 30 June 2023
372,318

24,662

(8,504)

–

(219,215)

169,261
Balance at 1 July 2023

372,318

24,662

(8,504)

–

(219,215)

169,261
T
otal comprehensive income for the period
Profit or loss
– – – – 12,738 12,738
O
ther comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax
– – (789) – – (789)
T
otal other comprehensive income
–

–

(789)

–

–

(789)
Total comprehensive income for the period – – (789) – 12,738 11,949
Transactions with shareholders recorded directly in equity
Dividends to shareholders

–

–

–

–

(7,763)

(7,763)
T
otal contributions by and distributions to shareholders
–

–

–

–

(7,763)

(7,763)
B
alance at 31 December 2023
372,318

24,662

(9,293)

–

(214,240)

173,447

30 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
Rārangi Kupu
Glossary
Acronym / TermDefinition
CompanyPGG Wrightson Limited
CPI Consumer Price Index
CPS / ¢/shareCents Per Share
GroupPGG Wrightson Limited
EBITDAEarnings before Interest, Tax, Depreciation, and Amortisation
EUEuropean Union
GRIGlobal Reporting Initiative
HSWHealth, Safety and Wellbeing
ITInformation Technology
IoTInternet of Things
N PATNet Profit After Tax
NZNew Zealand
p.a.Per Annum
PPPolypropylene
PGWPGG Wrightson Limited
R&DResearch and Development
S&P / NZ50GStandard & Poors / NZ50G Index Gross (inclusive of dividends paid)
TSRTotal Shareholder Return

31 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2023
Whaiaronga Rangatōpū
Corporate Directory
Company number 142962
NZBN 9429040323497
Board of Directors
as at 31 December 2023
U Kean Seng

Acting Chair from 4 July 2023
(stepping down as Acting Chair on
16 February 2024)
Sarah Brown
Deputy Chair from 4 July 2023,
Chair of Audit Committee,
and Independent Director
Meng Foon
Independent Director
Garry Moore
Audit Committee member
and Independent Director
(assuming the Chair on 16 February 2024)
Dr Charlotte Severne
Chair of Board Health, Safety
and Environment Committee,
and Independent Director
Executive Team
as at 31 December 2023
Stephen Guerin
Chief Executive Officer
Nick Berry
General Manager Retail & Water
Julian Daly
General Manager Corporate Affairs/
Company Secretary
Grant Edwards
General Manager Wool
Peter Newbold
General Manager Livestock & Real Estate
Peter Scott
Chief Financial Officer
Rachel Shearer
General Manager People and Safety
Registered Office
PGG Wrightson Limited
1 Robin Mann Place
Christchurch Airport
Christchurch 8053
PO Box 292
Christchurch 8140
Telephone:
0800 10 22 76 (NZ only)
+64 3 372 0800 (International)
Email: enquiries@pggwrightson.co.nz
Auditors
Ernst & Young
Level 4
93 Cambridge Terrace
PO Box 2091
Christchurch 8140
Telephone: +64 3 379 1870
Managing your shareholding online | Te whakahaere tuihono i tō pānga hea
To change your address, update your payment instructions and to view your investment portfolio, including transactions,
please visit:
www.investorcentre.com/nz
General enquiries can be directed to:
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland 0622
enquiry@computershare.co.nz
Private Bag 92119, Auckland 1142,

New Z
ealand
Telephone +64 9 488 8777
Please assist our registrar
by quoting your CSN or
shareholder number.

PGG Wrightson Wool Representative,
Graeme Bell, Wool Product & Innovation
Manager, Jason Everson, Marketing
Co-ordinator, Bella Black, and Bloch &
Behrens Senior Wool Buyer and Trader,
Mark Hunter, discuss the challenges of
farming on the doorstep of one of New
Zealand’s most visited national parks
with Randall Aspinall, Owner,
Mt Aspiring Station near Wanaka, Otago.

---

PGG Wrightson Ltd | NZX Announcement

27 FEBRUARY 2024

PGG Wrightson announces FY24 half year
result and provides guidance update


GROUP PERFORMANCE
PGG Wrightson Limited
1
(PGW) today announced its results for the first half of FY24. Key items and
metrics for the first six months to 31 December 2023 included:
❖ Operating EBITDA
2
of $36.6 million (down $11.2 million or 24%).
❖ Revenue of $560.9 million (down $24.9 million or 4%).
❖ Net profit after tax of $12.7 million (down $8.4 million or 40%).
❖
Updated Operating EBITDA guidance of around $50 million for financial year to 30 June 2024.

❖The PGW Board has by a majority determined PGW will reinvest capital back into growing the
business by suspending the interim dividend to avoid adding debt in the face of rising interest costs.
The Board considers PGW has performed well in difficult market conditions impacting the primary
sector and wider economy. It is recognised that uncertainties remain and it is prudent to wait until
the full financial year is complete before reviewing the dividend payout ratio (if any).
❖ Recent levels of dividend have been at the upper end of the payout ratio for the sector and are not
sustainable.
PGW Chair, Garry Moore said “the Company has traded solidly during the first half of the financial year
in materially more challenging market conditions than experienced in recent years. Factors such as
elevated levels of inflation and interest rates on rising debt levels, together with subdued demand and
softer returns in most of New Zealand’s key primary export commodities, have all contributed to create
a more demanding

environment for many of PGW’s farmer and grower clients and there is a strong
correlation between the fortunes of our clients and PGW.”
In terms of the key metrics, PGW delivered operating earnings before interest, tax, depreciation, and
amortisation (“Operating EBITDA”) of $36.6 million (down $11.2 million or 24 per cent compared to the
prior corresponding period). Revenue was $560.9 million (down $24.9 million or 4% per cent) and net
profit after tax (NPAT) was $12.7 million (down $8.4 million or 40 per cent).
Moore went on to say “This half year result can be described as steady in the context of the headwinds
the sector and the wider economy face. Our Retail & Water segment nevertheless traded well compared
to the record high for the comparative period. Our Agency segment results were again impacted by the
weak real estate market and softer commodity pricing particularly in sheep and lamb markets where
prices were back 28 per cent year-on-year.
In response to these trading conditions PGW has been actively managing and reducing spend in a
range of cost areas. At the same time, we have seen increases in costs through supplier price rises
as evidenced by ongoing CPI increases.

PGG Wrightson Ltd | NZX Announcement
Favourable climatic conditions in Australia in recent years have seen farmers build up their sheep
flocks, with numbers estimated to be at their highest in 15 years. However, recent dry conditions in
Australia have resulted in record slaughter numbers and were up 16 per cent from the previous year.
This excess supply has negatively impacted farmgate sheep meat returns on both sides of the
Tasman.”
It is useful to look at this result in the context of PGW’s performance through the economic cycles over
recent years and we refer to our half-year results at an Operating EBITDA, revenue and NPAT level for
the previous five years below.






It is also informative to highlight PGW’s total shareholder return baselined against the S&P/NZ50G over
this period. PGW has seen a total shareholder return movement of +93.08 per cent since the share
consolidation in August 2019 following the sale of the PGW seeds business. This compares favourably
to the S&P/NZ50G index movement of +8.44 per cent over the same period.

PGG Wrightson Ltd | NZX Announcement
PGW’s Total Shareholder Return (gross) versus S&P/NZ50 Index (gross)

From 13 August 2019 (post share consolidation) to 31 December 2023, rebased to 100, includes dividends.
Source: IRESS

“Despite the challenging environment PGW’s dedicated and knowledgeable team continue to deliver
first class service and products to our clients, who appreciate the tailored advice they receive from our
trusted store teams and reps in their fields and orchards.
Distributions | Ngā Utu Whaipānga

Given the current challenges faced in the sector and broader economy and the impacts these have had
on our business, the PGW Board has determined not to pay an interim dividend. The Board considers
that this is an appropriate and prudent measure to take at the present time. At a broader level the PGW
Board is also assessing its ongoing dividend payout ratio given the need to strike the right balance
between sustainable distributions for shareholders whilst retaining sufficient earnings in the best
interests of the company to allow it to effectively execute upon its strategy.”
Retail & Water Group
PGW CEO, Stephen Guerin said, “The Retail & Water business incorporates Rural Supplies, Fruitfed
Supplies, Water, and Agritrade. Operating EBITDA for Retail & Water was $40.0 million (down $9.0
million), and revenue was $478.3 million (down $21.7 million) on the prior corresponding period.
Farm and orchard spending indicators across the board continue to point downward. Although farmer
and grower confidence has improved over the period, investment intentions have fallen to their weakest
since the 1980s (excluding the first COVID-19 lockdown). This is a result of high interest rates, inflation,
and a decline in both meat and milk commodity prices due to softer demand in export markets and the
ongoing impact of Cyclone Gabrielle for our North Island clients in both the rural and horticulture
sectors.
The professionalism and superior advice, service, and technical ability of our people continues to
reinforce loyalty and attract new clients and underpins pleasing market share growth. We continue to
build on PGW’s reputation of providing the best technical advice in our market and our customer
research demonstrates strongly that this focus and market differentiating factor resonates well with our
clients and remains a key component in our strategy as we hold and develop our market
competitiveness.
In several sales categories, we have seen growth on last year’s record result. The standout range being
General Merchandise which is continuing to grow year-on-year. This is a strong indicator of increasing
foot traffic through our stores which is a testament to our team’s culture and client centric focus. Our
goal of having the best trained people in the industry is widely understood and well recognised by our
clients.
+8.44%
+93.08%
60
90
120
150
180
210
240
270
300
Aug-19Aug-20Aug-21Aug-22Aug-23
Total Shareholder Return
S&P/NZ50G IndexPGW

PGG Wrightson Ltd | NZX Announcement
Customer focused innovation is one of our strategic pillars and we continue to invest in this area. During
the period we introduced our self-funded research and development (R&D) model. We currently have
a strong footprint in horticultural R&D and will expand this to the rural sector of our business, focusing
on systems, programmes, and product focused R&D.
We continue to invest in our store network which further demonstrates our commitment to rural New
Zealand and supporting farmers and growers across the length of the country.
Our Rural Supplies clients were not affected by the predicted impacts of the early onset of the El Niño
dry season across the country as it did not materialise through the spring. There was a lot of rain for
most areas during the critical spring months and with a prevalence of cooler temperatures. This led to
increased grass cover and good feed reserves. The flow on effect of this has been reduced sales of
stockfood and summer brassicas.
Our goal of having the best trained people in the sector is evident in the growth of our animal health
offering where we are taking a proactive approach relating to the onset of drench resistance. Drench
resistance is accelerating and the financial impact on sheep and beef farmers will be significant. PGW
has proactively moved to get ahead of this challenge and provide market leading support and advice
to our clients on this topic.
Fruitfed Supplies’ result for the first half was impacted by Cyclone Gabrielle, which occurred in February
2023. A number of our clients in Gisborne and Hastings lost large areas of crop and therefore required
less product in the new season. Many clients lost their entire seasons crop last year causing cash flow
impacts. Due to falling returns and the impact of the cyclone we have seen a slowing of horticultural
development over the last 12 months as growers look to consolidate their existing businesses and
remediate properties.
Returns in some sectors have been softer. The apple, avocado and kiwifruit industries have
experienced weaker demand and declining returns, with prices for some crops at levels not seen for
several years. These falling returns have resulted in the amount clients spend on some product lines
reducing.
Agritrade, our wholesale business division, commenced a review of its business strategy with a focus
on areas that generate value growth. The primary emphasis to date has been about optimising the
supply chain dynamics with a goal of reducing customer order frequency and adding minimum order
volumes. This reduction enhances operational efficiency by reducing operational overheads,
greenhouse gas emissions and enhances customer service. Additionally, the focus has extended to
identifying and addressing non-profitable products to ensure that our inventory better aligns with market
demands and continues to contribute meaningfully to our revenue. These refinements of our model
aims to position our wholesale business for sustained growth.
Tensions in the key Red Sea trade route are contributing to longer shipping times and higher freight
costs for some products.
Agency Group
Our Agency group includes Livestock, Wool, and Real Estate. Agency delivered an Operating EBITDA
of $1.4 million for the first six months of the 2024 financial year, a reduction of $2.2 million compared with
the same period last year. Revenue was $81.6 million, down $3.1 million compared to the prior period.
Our Livestock business was impacted by the reduced volumes of livestock being traded, particularly North
Island cattle and dairy, as high on-farm inflation, softer commodity prices, and elevated interest rates
have led to more cautious purchasing. Poor lamb prices have squeezed commission revenue, with
weaker Chinese demand and increased Australian supply causing prices to fall.
Our strong relationships with our clients contributed to maintaining our market share throughout these
tough times. During the period we grew our supply chain partnerships and increased volumes.
GO-STOCK returns were up significantly compared to the prior period, reflecting the attractiveness of the
product to clients. It remains a popular product for our clients, assisting them with their cash management
and allowing capital to be used elsewhere.

PGG Wrightson Ltd | NZX Announcement
bidr®'s growth in the first half of the year was assisted by the installation of weekly saleyard auctions at
Stratford and Taranaki, as well as an increase in the number of on-farm hybrid auctions for commercial
sheep and beef in the North Island.
The total number of wool bales sold was ahead of the same period last year. Although prices for strong
wool remain supressed, it was encouraging to note increases in prices compared to last season. Top
quality, well-prepared crossbred fleeces command premiums. Our market share especially in the fine
wool market has grown on the back of profitable contracts offered to growers.
We grew our wool contract business which links wool growers with manufacturers domestically and
internationally and provides growers with surety of price. We saw increased enquiries from domestic and
international retail brands with a number of overseas clients visiting.
The New Zealand Real Estate market has endured a difficult time. North Island sales in particular have
been low with the volume of transactions significantly back on the business transacted in FY21 and FY22.
Cashflow and Debt
Cashflow from operating activities saw a $6.8 million outflow; a $28.1 million improvement compared to
the prior comparative period.
Although Operating EBITDA was $11.2 million lower than the comparative period the build in working
capital for the Group of $36.1 million was $33.4 million lower than the prior six-month period. The Group
received good collections from customers with overdue rates lower than 31 December 2022. In addition,
income tax payments were also $7.7 million lower than the prior period, which included income tax
payments on the record FY22 financial performance. Financing costs were $1.4 million higher as a
consequence of higher interest rates.
Capital expenditure was $6.9 million, an increase of $0.7 million versus 31 December 2022 and included
investment in our Business Improvement Programme.
The Group paid the FY23 Final dividend of 10 cents per share, or $7.8 million in October 2023.
Net interest-bearing debt was up $1.4 million compared to 31 December 2022 at $96.9 million.
The Group renewed and extended its bank facilities in December 2023 through to 2026.”
Outlook
Mr Moore noted, “PGW’s outlook remains cautious with the agricultural sector and international
marketplace facing various challenges including the impact of El Niño conditions, lower meat pricing (in
particular sheep and lamb), higher input costs, softer commodity pricing for primary exports, and subdued
demand from our largest export market, China. The carry over impacts of Cyclone Gabrielle together with
supply chain issues associated with offshore conflicts and higher interest costs are all contributing to
temper the short-term outlook and prospects.
Sheep meat prices are at their lowest range in a decade with high volumes of Australian meat and weaker
international demand. Whilst pressure on sheep pricing is anticipated to continue in the near term, there
is an expectation we will see improved trading across the major stock types as the countryside dries and
the current abundance of grass diminishes. Beef prices are expected to remain stable. Although beef
farmers are more optimistic, there is concern about the year ahead which may translate into reduced
investment.
Rising dairy prices have improved dairy farmer confidence in recent weeks with Global Dairy Trade
auctions recording higher prices and increasing payout expectations. The removal of the remaining dairy
tariffs on dairy exports to China allows New Zealand products to enter China duty free and providing an
advantage over some international export competitors.
The outlook for horticulture is positive with good kiwifruit, apple and pear crops expected to be harvested.
Kiwifruit is predicted to deliver improved quality fruit with higher volumes compared to last year. Wine
exports are expected to reduce this season, then increase next season. Overall, horticulture is anticipated
to produce stronger export volumes from this year's harvest without the impact of events such as Cyclone
Gabrielle, with further growth into next year.

PGG Wrightson Ltd | NZX Announcement
We see some positive signs in the real estate market as we move into 2024. Sentiment is improving, and
current indications suggest that sales levels will grow in the months ahead, with more orchards poised to
come on the market in autumn.
The NZ - EU Free Trade Agreement will progressively come into effect during 2024 providing improved
access to the European markets.
Whilst the factors impacting market sentiment are mixed and slightly pessimistic in the near term, we are
confident that PGW remains in a strong position to capitalise on opportunities as they arise and maintain
the positive performance trend that PGW has demonstrated over the past five years. The longer-term
prospects for the New Zealand primary sector remain strong with the Ministry for Primary Industries
projecting steady growth.
While noting the green shoots of a recovery in our clients’ confidence in the sector, we remain cautious
as to on-farm and on-orchard spend. We see a period of debt reduction by clients given the recent
commodity pricing cycle and the ongoing recovery costs related to Cyclone Gabrielle for North Island
clients.
On balance, we remain cautious and expect to see subdued activity over the remainder of the financial
year. Given the mixed signals in the macroeconomic environment we have revised our forecast Operating
EBITDA guidance for the year to 30 June 2024 to around $50 million.”

For media enquiries contact:
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
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. Please refer to our full accounts for details of how Operating
EBITDA relates to GAAP. For a comprehensive discussion on the use of non-GAAP profit
measures, please refer to the policy “Non-GAAP Accounting Information” available on our website
(www.pggwrightson.co.nz).

---

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 6 months to 31 December 2023
Previous Reporting Period 6 months to 31 December 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$560,878 -4.2%
Total Revenue $561,002 -4.2%
Net profit/(loss) from
continuing operations
$12,738 -39.8%
Total net profit/(loss) $12,738 -39.8%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.00000000
Imputed amount per Quoted
Equity Security
$0.00000000
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.88 $2.05
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the accompanying commentary and unaudited
interim consolidated financial statements.
Authority for this announcement
Name of person

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

27/02/2024

Unaudited financial statements accompany this announcement.

---

2024 HALF YEAR RESULTS
PRESENTATION
—
For the six months ended 31 December 2023
27 February 2024

TRADING PERFORMANCE
—
Half year operating earnings
before interest, tax,
depreciation, and amortisation
(“Operating EBITDA”) of $36.6
million; down $11.2 million or
24% from the comparative
period.
Revenue of $560.9 million;
down $24.9 million or 4% from
the comparative period.
Net Profit After Tax of $12.7
million; down $8.4 million or
40% from the comparative
period.
REVENUE
$560.9 million
NET PROFIT AFTER TAX
$12.7 million
OPERATING EBITDA
$36.6 million

OPERATING EBITDA
First Half Financial Year Five Year Summary
—
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 presentation. 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.
Other: Other (non-operating segment) relates to certain Group Corporate activities including Governance, Finance, Treasury, Risk and Assurance, and other support services
(including corporate property services and marketing).
35
40
47
48
37
-10
0
10
20
30
40
50
60
HY20HY21HY22HY23HY24
AgencyRetail & WaterOtherTotal Operating EBITDA
34
7
44
-4
9
-3
7
-3
31
-5
4
49
$ million
40
1
-5

REVENUE
First Half Financial Year Five Year Summary
—
469
499
552
586
561
0
100
200
300
400
500
600
700
HY20HY21HY22HY23HY24
RevenueTotal Revenue
$ million

NET PROFIT AFTER TAX
First Half Financial Year Five Year Summary
—
13
17
23
21
13
0
5
10
15
20
25
HY20HY21HY22HY23HY24
Net Profit After TaxTotal Net Profit After Tax
$ million

SHARE PRICE
Post Share Consolidation
—
0.00
1.00
2.00
3.00
4.00
5.00
6.00
13-Aug-1913-Feb-2013-Aug-2013-Feb-2113-Aug-2113-Feb-2213-Aug-2213-Feb-2313-Aug-23
PGW Share Price
552
476
430
$
PGW share price from 13 August 2019 to 31 December 2023

TOTAL SHAREHOLDER RETURN
Post Share Consolidation
—
PGW’s Total Shareholder Return (gross) versus S&P/NZ50 Index (gross)
From 13 Augst 2019 (post share consolidation) to 31 December 2023, rebased to 100, includes dividends.
Source: IRESS

OUTLOOK FOR FY2024 &
GUIDANCE UPDATE
—
•PGW’soutlookremainscautiouswiththeagriculturalsectorandinternationalmarketplacefacing
variouschallengesincludingtheimpactofElNiñoconditions,lowermeatpricing(inparticularsheep
andlamb),higherinputcosts,softercommoditypricingforprimaryexports,andsubdueddemandfrom
China.
•Whilstthesefactorsimpactingmarketsentimentaremixedandslightlypessimisticinthenearterm,we
areconfidentthatPGWremainsinastrongpositiontocapitaliseonopportunitiesastheyariseand
maintainthepositiveperformancetrendthatPGWhasdemonstratedoverthepastfiveyears.
•Onbalance,weremaincautiousandexpecttoseesubduedactivityovertheremainderofthefinancial
yearahead.Giventhemixedsignalsinthemacroeconomicenvironmentwehaverevisedourforecast
OperatingEBITDAguidancefortheyearto30June2024toaround$50million.

DISCLAIMER
—
ThispresentationhasbeenpreparedbyPGGWrightson(“PGW”)withduecareandattention.
The2024HalfYearResultsareforthesixmonthsto31December2023.
ForwardlookingstatementsregardingthepotentialfutureperformanceofPGWhavebeenexpressedby
managementusinginformationcurrentlyavailable.Thesearebasedoncurrentexpectations,estimates
andassumptionsanddonotguaranteeorpredictfutureperformance.
Actualresultsmaydifferfromthosepredictedasthereareanumberofuncertaintiesandrisksbeyond
PGW’scontrolthatmayaffecttheresults.
Valuesonthegraphsareroundedtothenearestmillion.Totalmaynotaddduetorounding.
Pleasereadthispresentationinconjunctionwith2024HalfYearResultsAnnouncementandReport.