Rural services group PGG Wrightson. Photo ./ File
Rural services group PGG Wrightson (PGW) said a strong performance from its retail and water business helped drive earnings to a record over the June year.
The company's net profit came to $24.3 million, up 7 per cent on the prior year's.
Operating EBITDA came to $67.2m, up 20 per cent, slightly ahead of the top end of its guidance of $62m to $66m.
PGW chairman Joo Hai Lee said it was an exceptional result, achieved despite several challenges.
"Like all businesses we have had to navigate managing Covid-19 protocols, dealing with a high proportion of health-related staff absences, responding to supply chain challenges, and resourcing the business in an extremely tight labour market," Lee said.
Revenue was up 12 per cent to $952.7m - and margins were broadly in line with the previous year's.
PGW declared a final dividend of 16 cents, bringing the total for the year to 30 cents.
The company did not give a specific earnings guidance, but Lee said the profitable run for most New Zealand agri sectors looked likely to continue through the remainder of 2022 and into the coming year.
"However, inflationary pressures on input costs will likely translate into reduced on-farm profits, and exporters will still need to navigate high shipping costs and challenging logistics," Lee said.
"While input prices are increasing, rising food prices are expected to be beneficial overall for New Zealand's agricultural sector.
"With a predominance of pasture-based production, New Zealand's dairy, sheep and beef farmers are relatively less exposed than international peers to the disruptions to grain markets from geopolitical unrest," Lee said.
Chief executive Stephen Guerin said PGW's retail and water businesses achieved outstanding results - EBITDA of $52.5m, up $15m on the prior year.
The company's rural supplies business also had a strong year, sustaining the momentum of recent years, as did its Fruitfed Supplies business.
PGW's agency group, which incorporates the livestock, wool and real estate businesses, achieved operating EBITDA of $21.8 - down $3.3m on the prior year's strong result.
Capital expenditure came to $8.8m, $2.0m higher than the previous year.
PGW's net interest-bearing debt came to $32.8m.
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