PGG Wrightson first half profit leaps 41%, raises dividend

PGG Wrightson has reported its first half result. Photo / Hawke's Bay Today

PGG Wrightson's net profit leapt 41 per cent in the first half to $18m, driven by strong performances from its retail, livestock and real estate businesses.

The Rural services group announced a fully imputed 12c dividend, up from 9c in the previous interim result.

The company shares rallied by 14c, or 4.1 per cent, to $3.50 on the back of the result.

PGW's operating EBITDA came to $42.1m in the six months to December, up 21 per cent, and the company said it was on track to achieve its full-year EBITDA guidance of around $57m.

Chairman Rodger Finlay said PGW had executed its strategy to drive consistent performance and growth.

"Our focus remains on serving and adding value to our customers' businesses by supplying on farm and grower solutions together with leading technical advice," he said.

"We are seeing the results of our continued investment in the business and our customers are also benefitting from the enhancements in the PGW Group offering," he said.

"These initiatives, along with the investment we are making in R&D enable us to bring new technically proven products and solutions to the New Zealand primary sector and demonstrates our commitment to innovation and the bright future of the primary sector."

Chief executive Stephen Guerin said the first six months of the 2021 financial year provided a very good start with all business units within retail and water trading ahead of the corresponding period last year.

Operating EBITDA for this group was $35.8m (up 15 per cent) and revenue was $413.4m (up 8 per cent).