PGW Guidance Update

PGG Wrightson Ltd | NZX Announcement 1







18 APRIL 2024
PGW Guidance Update
Operating EBITDA forecast for FY24 to be around $43 million
PGG Wrightson Limited
1
(PGW) announced today it has revised its Operating EBITDA
2
to be around
$43 million (from $50 million) for the financial year to 30 June 2024.
PGW Chair, Garry Moore said that “Since releasing our half-year results in February, trading
conditions have deteriorated because of market conditions that are impacting the whole of the
agricultural sector. Features that are contributing to the
restrained
spend patterns we are seeing
include:
▪ Drought conditions with soil moisture deficits against historic averages across much of the East
Coast, Tasman and Northland over the first quarter of 2024.
▪ Weak sheep meat demand from China and increased supply culminating in lower farmgate
returns.
▪ Interest rates and input costs remain elevated, impacting on-farm and on-orchard profitability with
clients looking to reduce debt and defer spend.
▪ Although the harvest season has been broadly positive there is a time lag in the conversion cycle
before farmers and growers see the financial benefits from their harvest production.
Whilst we have seen a slight uptick in farmer and grower confidence in recent months, this is off a
low base and sentiment in the sector remains subdued. This manifests in reduced investment and
spend decisions on farm and orchard. Consequently, we are seeing some clients defer spend where
they can and hold off on discretionary items. In this context PGW’s outlook for the remainder of the
financial year remains cautious.
Despite the present difficult market conditions, we remain positive about the prospects for the sector
over the medium to longer term and have confidence that PGW is well placed to support our clients
through these challenging times and beyond. As a business, PGW does well when our clients prosper
and consequently the converse is true that when times are tough for our clients this also impacts our
performance.
Notwithstanding
the difficult trading conditions, PGW continues to maintain and grow
share in the markets in which we operate.”

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

PGG Wrightson Ltd | NZX Announcement 2
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).