PGG Wrightson declares dividend as profits surge 248%

In its annual results, announced last week, PGW reported an operating revenue up $59.4 million (6%) to $56.1 million, and net profit after tax up by $7.6 million to $10.7 million.

The net profit represents a 248% increase, albeit from the low base of just $3.1 milion in the previous financial year, when no dividend was paid.

The company has declared a final dividend of 4 cents per share, totalling 6.5 cents for the year.

PGW chief executive, Stephen Guerin, said they had signalled increasing positivity at the time of the half-year result and that had come through in the result.

"Dairy was obviously the leading light but we could see a bit more than that, in terms of that movement in sheep price starting from about December.

"Red meat's alwasy been pretty good. And we could see what was going on from a real estate perspective and it's played out in the second half of the year, particularly in our agency businesses."

Read More:

• PGG Wrightson increases 2025 earnings forecast amid rural sector growth
• PGG Wrightson buys Nexan Group for $20 million
• Positive signals but challenges remain

Guerin said PGW's Retail & Water Group, incorporating Rural Supplies, Fruitfed Supplies, Water, and Agritrade recorded an operating EBITDA up $1.1 million.

"Retail & Water refreshed its five-year plan with a focus on a range of growth initiatives.

"A key example of such initiatives was the acquisition in July 2025 of the Nexan Group. Nexan Group manufacturers the Vetmed range of animal health products along with other brands. This acquisition PGW's commitment to delivering high-quality innovative solutions that help New Zealand farmers thrive."

Another initiative is the launch of the 'BlueAG' label of agrichemicals, which farmers will begin to see on the shelves from about next month.

Guerin told Rural News that a lot of generic agricultural chemicals come into the country and they want to market it under their own brand that they can stand.

"We still see a place for proprietary chemistry out of the major multinationals but we do want to bring some of this product in under our own brand."

However, the bulk of the improved profit has come from PGW's Agency group, incorporating the Livestock, Wool, and Real Estate businesses, which recorded an operating EBITDA of $23.5 million, up $11.1 million on the prior year's result.

Guerin said stud stock sales rebounded as clients returned to the market with an increased demand for sire bulls, with records set during the selling season.

"Good pricing for dairy resulted in strong demand. Livestock pricing was buoyed by the forecast milk price, and high-end herd sales. There were also strong forward contracts for dairy herd sales."

Guerin said increased real estate activity contributed to a "really pleasing" performance by PGW Real Estate, with revenue up by 55% on the same period last year.

The market had been buoyed by a gradual downward trend in interest rates, stronger dairy payouts, robust red meat pricing, and farm gate prices.

Guerin said the volume has come from commercial farm sales (rather than residential or lifestyle blocks) - initially dairy, but more sheep and beef properties latterly. Some of those were going into dairy conversions, particularly on the Canterbury Plains, while some were being retained for sheep and beef.

There were also increased enquiries for horticultural land, especially pipfruit and kiwifruit but "not so much" for viticulture.

Guerin acknowledged that the overall profit was still down on those enjoyed through the years 2021-23 but that was a time when "every part of the sector was aligned in the positive direction".

There were still challenges but PGW was now seeing increased enquiries for the likes of irrigation infrastructure for conversions, deferred maintenance such as fencing products, stock food for calf raising, and seed.

"We're seeing record volumes of calves passing through the North Island saleyards. There's some good pricing in there. It's too early to see those calves come through in the South Island yet, but that that confidence is now playing out in actual activity on farm."