Half Year 2024 PGG Wrightson Ltd Earnings Call Transcript
Key Points
- PGG Wrightson Ltd (NZSE:PGW) reported a total shareholder return of +93.08% since August 2019, significantly outperforming the S&P/NZX50 Gross Index's +8.44% over the same period.
- The retail and water segment showed resilience, with operating EBITDA of $40.0 million, despite challenging market conditions.
- The company has seen growth in several sales categories, particularly General Merchandise, indicating increased foot traffic and customer engagement.
- PGG Wrightson Ltd (NZSE:PGW) continues to invest in customer-focused innovation, such as the successful trial of Spark IoT fridge sensors, enhancing product quality assurance.
- The company has a strong focus on health, safety, and well-being, with new training programs and risk reduction initiatives in place.
- Operating EBITDA for the first six months was $36.6 million, down $11.2 million or 24% compared to the prior period.
- Revenue decreased by $24.9 million or 4%, and net profit after tax fell by $8.4 million or 40%.
- The Board has suspended the interim dividend to reinvest capital and avoid debt, reflecting financial caution amid rising interest costs.
- The agency segment, including livestock, wool, and real estate, saw a reduction in operating EBITDA by $2.2 million compared to the same period last year.
- Farm and orchard spending indicators are down, with investment intentions at their weakest since the 1980s, excluding the first COVID-19 lockdown.
Thank you for standing by and welcome to the PGG Wrightson Limited half-year results call. (Operator Instructions)
I would now like to hand the conference over to Mr. Stephen Guerin, Chief Executive Officer. Please go ahead.
Thank you, operator. Ata mÄrie. Good morning and welcome to the PGG Wrightson results briefing for the six months to December 31, 2023. I'm Stephen Guerin, the Chief Executive Officer, as the operator introduced, and I'm pleased to provide you an overview of the interim results from 2024 financial year. Joining me on the call are Peter Scott, our CFO; and Julian Daly, our General Manager, Corporate Affairs, who is also our Company Secretary.
Today, I'll summarize the financial results, our trading performance, key themes, and initiatives for the period. And I will discuss some thoughts of the year ahead. There will be a time for questions and answers at the end of the session. During this call, I will refer to PGG Wrightson as PGW, the company, or the group. I
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