“These results were realised with margins broadly in line with the comparative period.
“This is the second-strongest trading performance for the business in recent years and bettered only by last year’s record result.”
He said the business was still contending with higher costs and inflation pressures, while clients were being hit by falling commodity prices and the damage incurred from two cyclones, floods, and cold spring weather.
Chief executive Stephen Guerin said PGW sustained much of the momentum of its strong first half, with strong performances for most divisions except real estate.
Its retail and water business, which includes rural supplies, servicing and installation of irrigation, had a record year with a 3 per cent rise in sales.
The agency group, which incorporated the livestock, wool and real estate businesses, had steady revenue but operating earnings fell 6 per cent with the impact of bad weather, weak sheep prices, and slower Chinese demand for some commodities.
Guerin said with easing supply disruptions, it had reduced the level of inventory it was carrying, and the Fruitfed business - which supplied the horticulture sector - would feel the effects of the bad weather over the next few seasons.
“The real estate market has experienced one of the toughest years in some time with high interest rates, stricter regulatory requirements, softening commodity prices, and uncertainty regarding the outcome of the general election in October 2023 all contributing to negative sentiment.”
The company made no immediate forecast of performance for the coming year, acknowledging the volatility in world markets and the global economy, but there were positive signals with a rising market share, higher orders for maize, and opportunities in the wine industry.
“We see continuing volatility and softening commodity prices for our clients and even more challenging macro market conditions out over the short to medium term than experienced in recent years,” Seng said.
- RNZ
