PGG Wrightson sells agricultural supplies. (File photo) Photo: Supplied
Rural business group PGG Wrightson has more than tripled its full year profit on the back of strong agricultural prices and farming sector activity.
The rebound in export prices, improved farmer confidence and spending drove an improvement in PGG Wrightson sales and profits.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $10.7m vs $3.1m
- Revenue $975.3m vs $916m
- Operating earnings $56.1m vs $44.2m
- Final dividend 4 cents per share
PGW Chair Garry Moore said the company had been able to capture the gains from changing markets, with a strong lift in its agency group, which included livestock and real estate business, and returned to profit after last year's small loss.
"Constrained supply for livestock and increased international demand drove up red meat and dairy commodity prices."
"This has had a positive influence on the profitability of farming operations and has led to a shift in sentiment."
Moore said lower interest rates had also added to improved confidence in the dairy and the red meat sectors, leading to higher farm profits, investment, and production output expectations.
The Retail and Water business, which includes its store network, horticultural supplies, irrigation and other farm infrastructure, posted an improved profit on lift in sales, but was challenged by softer conditions in the wine industry and vegetable businesses.
Chief executive Steve Guerin said farmers were spending, but were not on a spending spree.
"While sales revenue improved on the prior year, farmers took a generally conservative approach with many using the good returns to reduce debt."
He said the division was also expanding certain lines of business, including buying an animal health products manufacturer, and boosting its own in-house brand of agricultural chemicals.
Moore said the outlook for the agriculture sector remained generally positive despite challenges in some sectors.
"Ongoing geopolitical tensions and unpredictable international trade terms also add to the uncertainty."
"Strong commodity prices are expected to remain throughout financial year 2026 across dairy, red meat, and horticulture crops ... the outlook is positive for the primary sector."
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