PGG Wrightson Surpasses $1 Billion Revenue with 46% Profit Growth in FY26

Strong Market Conditions Propel Earnings

PGG Wrightson Limited (NZX:PGW) closed FY26 with a solid 10% increase in operating revenue, hitting $1.1 billion, and a striking 46% leap in net profit after tax to $15.6 million. This marks the first time since the 2019 divestment of its Seeds business that PGW has topped the billion-dollar revenue mark, signalling a notable recovery and growth trajectory across its agricultural services.

The surge was underpinned by elevated livestock prices buoyed by robust international demand for red meat amid constrained supply, alongside improved returns in dairy, wool, horticulture, and rural real estate markets. These conditions boosted farmer confidence and investment, which flowed through PGW’s agency and retail operations.

Retail & Water and Agency Segments Deliver Growth

The Retail & Water division posted a 10% revenue increase to $851.2 million and a 6% rise in operating EBITDA to $44.5 million. Rural Supplies benefited from reinvestment on farms, while Fruitfed Supplies maintained market share despite challenges in viticulture. The recent acquisition of Nexan, a New Zealand animal health manufacturer, contributed positively with $8.1 million revenue and $1 million net profit in its first 11 months within the group.

Meanwhile, the Agency segment had a standout performance with 10% revenue growth to $221.5 million and a 23% jump in EBITDA to $29 million. Livestock commissions thrived on historically high sheep, cattle, and dairy prices, while rural real estate activity surged; dairy property sales volume rose by roughly 30%, and horticultural property sales by about 60%. PGW Wool’s performance remained steady, supported by a national open-cry wool auction that consolidated market activity.

Cashflow Strength and Strategic Investments

Operating cash flow soared by $40.2 million to $52.6 million, reflecting both improved earnings and favourable working capital movements. Capital expenditure increased to $29.3 million, including $19.7 million for the Nexan acquisition and $6.6 million on property, plant, and equipment.

Net interest-bearing debt edged up slightly to $88 million, largely due to the Nexan purchase and additional investment in GO-STOCK receivables, a livestock deferred payment programme. Excluding these, debt would stand at a more conservative $61.3 million. PGW also renegotiated and extended its syndicated banking facilities to September 2029, increasing total limits from $185 million to $265 million, enhancing financial flexibility for future growth.

Operational and Strategic Highlights

PGW marked its 175-year anniversary with ongoing investments in innovation and customer experience. The integration of Nexan progressed smoothly, Blue AG™ completed its first full trading season, and the Hastings R&D Station ran 98 trials nationwide, underpinning technical expertise and commercial insights.

Safety metrics improved with a 3.5% reduction in the Total Recordable Injury Frequency Rate, while customer satisfaction jumped significantly, as reflected in the Group’s Net Promoter Score. Environmental efforts saw a 23% reduction in greenhouse gas emissions since FY21 (unaudited).

Dividend and Outlook

The Board declared a fully imputed final dividend of 5.5 cents per share, bringing the full-year dividend to 10 cents per share. Earnings per share rose to 20.6 cents, comfortably exceeding the FY26 target of 15.7 cents.

Looking ahead, PGW enters FY27 cautiously optimistic. While strong demand for red meat, dairy, and horticulture supports farm profitability and investment, the company flagged risks from a potential El Niño event, geopolitical tensions, supply chain disruptions, and elevated input costs. Viticulture and arable sectors remain challenging, and election-year dynamics could temper rural property markets.

PGW plans to provide more detailed FY27 guidance at its Annual Shareholders’ Meeting in October 2026, as the critical spring trading period unfolds.