Wednesday, 23 July 2025 12:55

PGG Wrightson increases 2025 earnings forecast amid rural sector growth

Written by  Staff Reporters
PGG Wrightson's gross operating earnings will now be around $54 million. PGG Wrightson's gross operating earnings will now be around $54 million.

Rural trader PGG Wrightson has lifted its earning guidance for the last financial year on the back of stronger-than-expected performances across several business units.

The listed company says gross operating earnings for year ended June 30, 2025 will now be around $54 million, compared to $51m forecast earlier.

The company says this forecast reflects stronger-than-anticipated performance across several businesses and continued resilience in New Zealand's agricultural sector.

Chair Garry Moore noted that the agricultural sector has rebounded and built momentum as the financial year has progressed, in contrast to some other parts of the economy.

"Improved farmer confidence, favourable growing conditions, and solid commodity prices have all contributed to a more positive operating environment."

PGW's Livestock and Real Estate businesses have delivered a strong turnaround from the previous year.

Dairy and beef prices have remained robust throughout the year, supporting farmgate returns. Lamb prices have held at elevated levels, providing welcome cashflows. Horticultural returns, particularly for kiwifruit and apples, have also been positive, with kiwifruit exports on track for a record year.

Moore says that the 2024 financial year appears to have marked the bottom of the cycle. Improved economic signals, including lower inflation and interest rates, are supporting renewed optimism. Rural real estate enquiries have strengthened, particularly for dairy, beef, sheep and select horticultural properties.

"While the overall outlook is positive, we remain mindful of ongoing challenges in the wool, viticulture, and arable sectors. The performance of our Retail & Water business this financial year has broadly been in line with FY24.

"It is pleasing to be able to report a stronger than anticipated finish to the financial year and lift our guidance expectations. We will have more to say on PGW Group's performance when we release our audited financial results on 12 August 2015," says Moore.

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