Record FY22 half year result and guidance upgrade

PGG Wrightson Ltd | NZX Announcement 1

22 FEBRUARY 2022



PGG Wrightson announces
record FY22 half year result and
upgrades guidance


Results Summary & Dividend
PGG Wrightson Limited (“PGW”)* today announced its results for the first half of FY22.
Highlights of the first six months to 31 December 2021 included:
❖ Revenue of $552.4 million (up $53.0 million or 11%)
❖ Operating EBITDA** of $47.4 million (up $7.8 million or 20%)
❖ Net Profit after Tax (“NPAT”) of $22.5 million (up $5.5 million or 32%)
❖ Total Shareholder Returns*** of +55%
❖ Increased fully imputed interim dividend of 14 cents per share
❖ Record first half year result with very strong performances from our Retail and Real Estate
businesses
❖ Strong balance sheet that continues to support growth ambitions for the business and renewed
and extended bank facilities
❖ Increased Operating EBITDA guidance for the full year of around $62 million
PGW Chairman, Rodger Finlay reported that “These record results for PGW are extremely pleasing and
reflect excellent performance of the business over the period. Our impressive results are a testament
to the incredible efforts of all staff in a very disruptive half year.”

“
PGW has delivered Operating EBITDA of $47.4 million, up $7.8 million or 20 percent on the prior
corresponding period. Revenue was $552.4 million (up $53.0 million or 11 percent) and NPAT from
continuing operations was $22.5 million, up 32 percent.”
“During the year we launched our strategy reset and outlined our PGW Group Strategic Priorities that
will direct our focus, differentiate our offering, and strengthen our position as a market leader in our
sector.”
Mr Finlay said, “Following the pleasing performance of the business over the first half the Board declared
an increased fully imputed interim dividend of 14 cents per share which will be paid on 1 April 2022 to
shareholders on PGW’s share register as at 5pm on 28 March 2022.”
First Half Trading Performance
PGW’s Chief Executive Officer, Stephen Guerin commented that “Commodity prices in general and
across the sector for New Zealand primary exports remain positive. Whilst a degree of volatility in
international markets continues with disrupted supply chains, inflationary pressures and a global
pandemic, our business is diversified and continues to adapt to our clients’ and market needs. Our
14 cents
Per Share, Fully Imputed
Interim dividend
$22.5m

Net profit after tax
$47.4m

Operating EBITDA

PGG Wrightson Ltd | NZX Announcement 2

focus remains to add value to our clients’ businesses by supplying products and services and providing
the best technical advice.”
Retail & Water
“The first six months of the 2022 financial year have resulted in the strongest first half trading for Retail
and Water on record. All businesses traded well ahead of last year which included new highs for some
months. Operating EBITDA for the Retail & Water group was $43.7 million (up $10.1 million or 30
percent) and revenue was $469.0 million, (up $55.6 million or 13 percent) on the strong performance in
the first half last year.”
“Our market share remains strong in our key market segments, and we continue to pursue targeted
growth. We remain focused on our clients and our strong culture, and our technical expertise is
recognised by our clients as a key point of difference. We continue to see new clients coming into stores
or contacting our rep force and asking them to come on farm or orchard.”
“Given current supply chain challenges PGW has been actively seeking to mitigate supply risks. We
have seen clients buying products earlier than usual to either lock in lower prices or secure product
availability. The cost of moving products through the supply chain is increasing due to inflated freight
charges. To ease the supply chain risks, we have been sourcing products earlier and are carrying more
inventory, as well as working closely with our suppliers on product forecasts and availability.”
Agency

“Trading for our Agency group delivered an Operating EBITDA of $7.4 million for the first six months, (a
reduction of $1.9 million compared with the same period last year), and revenue was $82.2 million (which
was slightly lower than the prior comparative period).”
“Livestock activity for the first six months has been impacted by wet weather conditions in the North
Island and COVID-19 restrictions including saleyard closures during Alert Level 4. During the period we
have continued to re-invest in the business through upgrades to our saleyard network and investment
in new technologies to assist our agents better service their clients.”
“Our Velvet business has seen some shipping challenges late in the second quarter but overall strong
velvet pricing and an improvement in venison prices bodes well for deer farmers.”
“Two new GO-STOCK products were launched in recent months. Our new GO-BEEF PRIME and GO-
DAIRY MAX & LIGHT products are proving popular and contributed to the overall GO-STOCK balance
increasing by over $5 million compared to the comparative period. A lot of clients use the product year-
on-year which is a welcome signal that GO-STOCK is seen by many as an integral part of their farming
operations.”
“bidr
®
’s hybrid auctions are seeing growing usage with dairy herd dispersals and deer sales, in addition
to stud bull and ram sales. Since the launch of saleyard livestreaming during the last six months, bidr
®
’s
user base has grown by 30 percent, with buyers seeing the benefits of nationwide reach.”
“The first half of the financial year saw substantial growth in rural real estate sales. It is the best result
for rural sales we have seen in many years and has been significant in heartland rural areas. Our market
share increased throughout the country and noticeably in the South Island.”
“Our Lifestyle and Residential sales are on par with the prior comparative period which is encouraging
especially given the shortage of listings and the competitive environment we are operating in.”
“The merino wool season was well supported by garment trade contracts and solid auction prices.
However, crossbred wool values continue to be depressed and are accentuated by shipping challenges
and impacts of the pandemic felt in manufacturing and retail markets worldwide.”
Cashflow and Debt
“Cashflow from operating activities saw a $17.0 million outflow, following investments in working capital
including the carrying of higher levels of inventory and higher tax payments. Capital expenditure was
broadly in line with the prior comparative period at $1.7 million.”
“Net interest-bearing debt as at 31 December 2021 was $46.9 million. PGW renewed and extended its
favourable bank facilities for a three-year term in late 2021.”

Website Refresh

PGG Wrightson Ltd | NZX Announcement 3

“Towards the end of 2021 we launched our refreshed Online Account Services Portal which provides
clients access to their statement and invoice details. The refreshed portal provides enhanced
functionality, better visibility, and improved site navigation, as well as the opportunity for us to add new
features and functionality in the future.”
“Our new corporate website has a contemporary design, is more intuitive, easier to navigate, and
provides an enhanced experience for users.”
Deloitte Top 200
“We are proud to have been nominated as a finalist for the 2021 Deloitte Top 200 ‘Most Improved
Performance Award’ which recognises an outstanding improvement in performance among New
Zealand’s largest businesses. In selecting nominees, the judges look at the relative improvement in all
performance indicators, the source of the improvement, and other ways the organisation has changed
and the impact of these changes.”
Outlook and Guidance Upgrade
Mr Finlay noted “The Directors are pleased with our first half results and are encouraged by the positive
outlook for the New Zealand agricultural and horticultural sectors. There continues to be high overseas
demand for red meat, a record pay-out forecast for dairy, and demand for horticultural exports remain
buoyant. The Ministry for Primary Industries is predicting New Zealand’s food and fibre export values
will exceed a new high of $50 billion in the year to 30 June 2022. This context at a macro level provides
us with confidence that our clients and the sector are well placed as we look towards the remainder of
this financial year and in the medium term.”
“As a business, PGW is performing well and is clear about its strategic priorities. Conscious of potential
COVID disruption we are executing upon our plans effectively and seeing quality growth in our business
and earnings. Based upon this solid platform the Board has determined to again raise our full year
guidance for the year ending 30 June 2022 to around $62 million at an Operating EBITDA level.”
For media enquiry contact:
Julian Daly
General Manager Corporate Affairs / Company Secretary
PGG Wrightson Limited
Mobile: +64 27 553 3373
* All references to PGG Wrightson Limited refer to the company, its subsidiaries and interests in associates and jointly
controlled entities.
** Operating EBITDA: Earnings before net interest and finance costs, income tax, depreciation, amortisation, the results
from discontinued operations, fair value adjustments and non-operating items.
*** Total Shareholder Return (TSR) is calculated based on the movement in share price during the 6 months to 31 December
2021, plus the dividend (cents per share) paid, divided by the opening share price.

PGW has used non-GAAP profit measures when discussing financial performance in this document. For a comprehensive
discussion on the use of non-GAAP profit measures, please refer to the policy “Non-GAAP Accounting Information” available
on our website (www.pggwrightson.co.nz)

---

2022 HALF YEAR RESULTS
PRESENTATION
—
For the six months ended 31 December 2021
22 February 2022

HIGHLIGHTS
—
* Total Shareholder Return (TSR) is
calculated based on the movement in
share price during the 6 months to 31
December 2021, plus the dividend
(cents per share) paid, divided by the
opening share price.
Some images in this presentation were taken at COVID-19 Alert Level 1 or 2, or under the COVID-19 Protection Framework. Please note that PGW
is following government guidelines for operation during COVID-19. For more information on our protocols please visit www.pggwrightson.co.nz/our-
company/covid-19-support

TRADING PERFORMANCE
& DIVIDEND
—
Half year operating earnings
before interest, tax,
depreciation, and amortisation
(“Operating EBITDA”) of $47.4
million; up $7.8 million or 20%
from the comparative period.
Net profit after tax of $22.5
million; up $5.5 million or 32%
from the comparative period.
A fully imputed interim dividend
of 14 cents per share will be
paid on 1 April 2022 to
shareholders on PGW’s share
register as at 5pm on 28 March
2022.
INTERIM DIVIDEND OF
14 centsper share, fully imputed
NET PROFIT AFTER TAX
$22.5 million
OPERATING EBITDA
$47.4 million

OPERATING EBITDA
First Half Financial Year Four Year Summary
—
FouryearfirsthalfOperatingEBITDAsummarypostdivestmentofPGGWrightsonSeeds.*HY19priortointroductionofNZIFRS16–Leases.
OperatingEBITDA:Earningsbeforenetinterestandfinancecosts,incometax,depreciation,amortisation,theresultsfromdiscontinuedoperations,fairvalue
adjustmentsandnon-operatingitems.PGWhasusednon-GAAPprofitmeasureswhendiscussingfinancialperformanceinthispresentation.Foracomprehensive
discussionontheuseofnon-GAAPprofitmeasures,pleaserefertothepolicy“Non-GAAPAccountingInformation”availableonourwebsite
(www.pggwrightson.co.nz).
Other:Othernon-segmentedamountsrelatetocertainGroupCorporateactivitiesincludingGovernance,Finance,Treasury,HRandothersupportservices(including
corporatepropertyservices)andincludeconsolidation/eliminationadjustments.
-10
0
10
20
30
40
50
60
HY19*HY20HY21HY22
AgencyRetail & WaterOtherTotal Operating EBITDA
47
40
35
18
34
7
44
-4
9
-3
7
-3
31
23
2
-7
$ million

REVENUE
First Half Financial Year Four Year Summary
—
420
440
460
480
500
520
540
560
HY19*HY20HY21HY22
RevenueTotal Revenue
552
499
469
474
$ million
* Excluding PGG Wrightson Seeds divested in 2019.

SHARE PRICE
Post Share Consolidation
—
0
1
2
3
4
5
6
12-Aug-1912-Feb-2012-Aug-2012-Feb-2112-Aug-21
PGW Share Price
55
50
4
47
6
43
0
$
PGW share price from 12 August 2019 to 31 December 2021

INTERIM DIVIDEND
—
An interim
dividend of 14
cents per share
has been
declared.
Dividend to be
fully imputed.
To be paid on 1
April 2022 to
shareholders on
the share register
at 5pm on 28
March 2022.

OUTLOOK FOR FY2022 &
GUIDANCE UPDATE
—
•TheDirectorsarepleasedwiththefirsthalfresultsandareencouragedbythe
positiveoutlookfortheNewZealandagriculturalsector.
•Asabusiness,PGWisperformingwellandisclearaboutitsstrategicpriorities.
•TheBoardhasdeterminedtoraiseourfullyearguidanceto30June2022toaround
$62millionatanOperatingEBITDAlevel.
•Notwithstandingthesefundamentals,weremaincautiousaboutthepotential
impactsofOmicron,continuedglobalsupplyrestrictions,andincreasesininput
costswhichcouldallhavesomedegreeofinfluenceonourresults.

DISCLAIMER
—
This presentation has been prepared by PGG Wrightson (“PGW”) with due care and attention.
The 2022 Half Year Results are for the six months to 31 December 2021.
Forward looking statements regarding the potential future performance of PGW have been expressed by
management using information currently available. These are based on current expectations, estimates
and assumptions and do not guarantee or predict future performance.
Actual results may differ from those predicted as there are a number of uncertainties and risks beyond
PGW’s control that may affect the results.
Please read this presentation in conjunction with 2022 Half Year Results Announcement and Report.

---

Template
Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer PGG Wrightson Limited
Financial product name/description Ordinary shares
NZX ticker code PGW
ISIN (If unknown, check on NZX
website)
NZREIE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 28/03/2022
Ex-Date (one business day before the
Record Date)
25/03/2022
Payment date (and allotment date for
DRP)
1/04/2022
Total monies associated with the
distribution
1

$10,567,771.62000000
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.19444444
Gross taxable amount
3
$0.19444444
Total cash distribution
4
$0.14000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.02470588
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.05444444

Resident Withholding Tax per
financial product
$0.00972222
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Julian Daly
Contact person for this
announcement
Julian Daly
Contact phone number 027 5533373
Contact email address jdaly@pggwrightson.co.nz
Date of release through MAP

22/02/2022





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019



Results for announcement to the market
Name of issuer PGG Wrightson Limited
Reporting Period 6 months to 31 December 2021
Previous Reporting Period 6 months to 31 December 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$552,373 +10.6%
Total Revenue $552,394 +10.6%
Net profit/(loss) from
continuing operations
$22,505 +32.0%
Total net profit/(loss) $22,505 +32.1%
Interim Dividend
Amount per Quoted Equity
Security
$0.14

Imputed amount per Quoted
Equity Security
$0.0544

Record Date 28/03/2022
Dividend Payment Date 1/04/2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.13

$2.00

A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the accompanying market commentary and
consolidated financial statements.


Authority for this announcement
Name of person

authorised
to make this announcement
Julian Daly
Contact person for this
announcement
Julian Daly
Contact phone number 027 5533373
Contact email address jdaly@pggwrightson.co.nz
Date of release through MAP

22/02/2022

Unaudited financial statements accompany this announcement.

---

Helping grow the country
Half Year Report
For the six months ended 31 December 2021

Some images in this report were taken at
COVID-19 Alert Level 1 or 2,
or under the COVID-19 Protection Framework.
Please note that PGW is following government
guidelines for operation during COVID-19.
For more information on our protocols please visit
www.pggwrightson.co.nz/our-company/covid-19-support
Cover image
PGG Wrightson Technical Horticultural Representative for Fruitfed
Supplies, Patsy Matthews, inspects the healthy root system of a
lettuce grown through a hydroponic system with Lisa Dale-Low,
co-owner of Waikawa Fresh, near Manakau, Kāpiti Coast.

$22.5m
NET PROFIT AFTER TAX
$5.5m or 32%
14 c/share
INTERIM DIVIDEND
$552.4m
REVENUE
$53.0m or 11%
$47.4m
OPERATING EBITDA
$7.8m or 20%
HIGHLIGHTS
CORPORATE
With improved
navigation
'Most Improved
Performance
AWARD NOMINATION
REAL ESTATE
Refreshed
PGW
website
Deloitte
Top 200
Finalist
Record
rural sales
results
RETAIL & WATER
Achieved
strongest
First half trading
GO-BEEF PRIME and
GO-DAIRY MAX
& LIGHT
LIVESTOCK
Launched
two new
products
TOTAL SHAREHOLDER
RETURNS* OF
+55%
* Total Shareholder Return (TSR) is calculated based on the movement in
share price during the 6 months to 31 December 2021, plus the dividend
(cents per share) paid, divided by the opening share price.
3 | PGG WRIGHTSON LIMITED
O
rari Gorge Station during their
on-farm lamb and ewe sale, north
of Geraldine, South Canterbury.

CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S REPORT
Stephen Guerin Chief Executive OfficerRodger Finlay Chairman
4
| PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
PGG Wrightson Limited (“PGW”, “the Group” or
“the Company”) delivered Operating earnings before
interest, tax, depreciation, and amortisation (“Operating
EBITDA”) of $47.4 million (up $7.8 million or 20%).
Revenue was $552.4 million (up $53.0m or 11%) and NPAT
from continuing operations was $22.5 million, up 32% on
the corresponding period.
These record results for PGW are extremely pleasing and
reflect excellent performance of the business over the
period. Our impressive results are a testament to the
incredible efforts of all staff in a very disruptive half year.
During the period we launched our strategy reset and
outlined our PGW Group Strategic Priorities that will
direct our focus, differentiate our offering, and strengthen
our position as a market leader in our sector.

OPERATING EBITDA
First Half Financial Year Four Year Summary
REVENUE
First Half Financial Year Four Year Summary
SHARE PRICE
Post Share Consolidation
560
540
520
500
480
460
440
420
$ million
HY19** HY20 HY21 HY22
Revenue Total Revenue
PGW share price
474
469
499
552
5 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
FINANCIAL PERFORMANCE
PGW share price from 12 August 2019 to 31 December 2021.
Four year first half Operating EBITDA summary post
divestment of PGG Wrightson Seeds.
* HY19 prior to introduction of NZ IFRS 16 – Leases.
** Excluding PGG Wrightson Seeds divested in 2019.
60
50
40
30
20
10
0
-10
$ million
HY19* HY20 HY21 HY22
Agency
Retail & Water
Other
Total Operating EBITDA
12 AUG 19 12 FEB 20 12 AUG 20 12 FEB 21 12 AUG 21 31 DEC 21
6
5
4
3
2
1
0
$
23
31
34
44
-7
-3-3
-4
2
7
9
7
18
35
40
47

6 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
Retail
& Water
Retail SuppliesFruitfed SuppliesWater & Irrigation
The first six months of the 2022 financial year have resulted in the
strongest first half trading for Retail and Water on record. All businesses
traded well ahead of last year which included new highs for some months.
Operating EBITDA for the Retail & Water group was $43.7 million (up $10.1
million or 30%) and revenue was $469.0 million, (up $55.6 million or 13%)
on the strong performance in the first half last year.
Hass avocados at Twin Coast
Orchard, near Pukenui,
north of Kaitaia, Northland.

7 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
Commodity prices in general and across the sector for New
Zealand primary exports remain positive. Whilst a degree of
volatility in international markets continues with disrupted
supply chains, inflationary pressures and a global pandemic, our
business is diversified and continues to adapt to our clients’ and
market needs. Our focus remains to add value to our clients’
businesses by supplying products and services and providing
the best technical advice.
Our market share remains strong in our key market segments,
and we continue to pursue targeted growth. We remain focused
on our clients and our strong culture, and our technical expertise
is recognised by our clients as a key point of difference. We
continue to see new clients coming into stores or contacting our
rep force and asking them to come on farm or orchard.
As a business, PGW has responded to the current market
dynamics in actively seeking to mitigate supply risks and by
keeping stakeholders informed. We have seen clients buying
products earlier than usual to either lock in lower prices or secure
product availability. The cost of moving products through the
supply chain is increasing due to inflated freight charges. To ease
the supply chain risks, we have been sourcing products earlier
and are carrying more inventory, as well as working closely with
our suppliers on product forecasts and availability.
Rural Supplies
Rural Supplies results were even better than that of the strong
prior comparative period for both revenues and Operating
EBITDA. We had good growth in most categories, especially
the key agronomy areas. Market share gains continue and the
team enjoys welcoming new clients in our stores. Some of the
increased growth is attributed to sales being pulled forward
due to the uncertainty of supply, price increases, and COVID-19
pandemic uncertainty. Farmers are being prudent making sure
they have product when they will need it.
While all sectors are enjoying increased returns some have been
softer due to increased input costs.
Fruitfed Supplies
The first six months trading for Fruitfed Supplies has seen
continued strong growth. Favourable climatic conditions
in the key spring period have resulted in most crops being
in good health with positive yields expected. These market
and environmental factors continue to attract investment
and development into the horticultural industry. As these
developments come into production, we are seeing increased
demand for the products and technical services we provide to
the sector.
Water
Continued technical training of our Sales and Service teams
throughout the winter of 2021 is delivering results with
increased client retention and referrals. This technical training
is a continued focus of our Rural Water business as we see
irrigation componentry becoming more advanced. It is
anticipated that we will continue to see supply chain delays in
sourcing some water and irrigation componentry during the
next 18 to 24 months.
Agritrade
Our Agritrade wholesale business division has had a good first
six months with key products and categories all performing well.
This is particularly pleasing given the supply chain disruptions
that were encountered throughout 2021 and have continued
into 2022.
The Agritrade team continues to work diligently to get the
required products into New Zealand and out into the rural
network in a timely manner. Whilst this has usually meant
planning our requirements much further in advance and
landing products earlier, it has also given us some opportunities
as we have seen other products in short supply or unavailable in
the New Zealand market.
PGG Wrightson Technical Horticultural
Representative, Jesse Clark, completing
a spray recommendation on Greenlight
Farm Management for an onion crop
near Pukekohe, South Auckland.

8 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
Agency
Trading for our Agency group delivered an Operating EBITDA of $7.4
million for the first six months, (a reduction of $1.9 million compared
with the same period last year), and revenue was $82.2 million which
was slightly lower than the prior comparative period.
PGG Wrightson Real Estate Salesperson,
Karen Hennessy, walks over a lifestyle
block near Darfield, Canterbury,
with the successful purchasers.
LivestockWoolReal Estate

9 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
Livestock
The first six months activity has been impacted by wet
weather conditions in the North Island, COVID-19 restrictions
including saleyards being closed during Alert Level 4. There
was a small decline in sheep and cattle numbers although
stock values were strong during the period. We have an
impressive cohort of young auctioneers progressing through
the ranks. Of the eight contestants vying for the 10th annual
Heartland Bank Young Auctioneers’ Competition, four were
representing PGW. PGW secured a quinella, taking out first
and second place, and it is pleasing to see such a talented
group of auctioneers coming through.
We continued to re-invest in the business through upgrades
to our saleyard network and investment in new technologies
to assist our agents better service their clients.
Our Velvet business has seen some shipping challenges late
in the second quarter but overall strong velvet pricing and
an improvement in venison prices bodes well for the year
ahead.
Two new GO-STOCK products were launched in recent
months to meet the demands of our clients. Our new
GO-BEEF PRIME and GO-DAIRY MAX & LIGHT products are
proving popular and contributed to the overall GO-STOCK
balance increasing by over $5 million compared to the
comparative period. A lot of clients use the product year-
on-year which is a welcome signal that GO-STOCK is seen by
many as an integral part of their farming operations.
bidr®’s hybrid auctions are seeing growing usage with dairy
herd dispersals and deer sales, in addition to the stud bull
and ram sales. Since the launch of saleyard livestreaming
during the last six months, bidr®’s user base has grown by
30 percent, which is mainly due to commercial buyers that
value the nationwide reach.
The introduction of ‘picks and run-outs’, a common way of
selling livestock in saleyards and at on-farm auctions, means
that functionalities that bidr® did not previously offer are
now available online. An insurance offering has been added
so that clients requiring insurance for higher value animals
can access insurance cover at the point of purchase.
PGG Wrightson National Dairy Specialist -
Livestock, Jamie Cunninghame, viewing the
Kaimatarau Jersey herd with Lindsay Pedley,
co-owner/breeder of Kaimatarau Jersey Stud,
near Rongotea, Manawatu.
Real Estate
The first half of the financial year saw substantial growth in rural
sales especially during the second quarter. It is the best result for
rural sales we have seen in many years and has been significant
in heartland rural areas. Our market share increased throughout
the country, especially in the South Island with some significant
results.
There has been an increase in land sales greater than $10 million
within all sectors which has not been evident in the marketplace
for some time. We have seen good interest in all sectors from
perspective buyers, and sheep and beef properties continue
to be in high demand. Our buyer pool for all sectors is more
diverse than previous years which indicates positive interest in
the rural sector.
Our Lifestyle and Residential sales are on par with the prior
comparative period which is encouraging especially given the
shortage of listings and the competitive environment we are
operating in. We have experienced good growth in key provincial
locations throughout both islands which is a testament to our
experienced salesforce. COVID-19 did challenge some of our
northern operations with restrictions placed on movements and
operating rules.
Wool
The merino wool season was well supported by garment trade
contracts and solid auction prices. However, crossbred wool
values continue to be depressed and are accentuated by shipping
challenges and impacts of the pandemic felt in manufacturing
and retail markets worldwide. The team continues to support
grower clients faced with tough market conditions.
Wool Integrity NZ™ brand relationships continue to grow with
New Zealand farmers and overseas clients. Bloch & Behrens Wool
(NZ) Limited, PGW’s subsidiary export company, saw growth in
export volumes compared to the same period last year. The team
is working on several new initiatives and the price premiums
obtained for our organic wool supply arrangements have
contributed to the increasing number of clients. It is pleasing to
note the increasing awareness of wool’s natural, sustainable, and
biodegradable attributes from our overseas clients.

PGG Wrightson Livestock Representatives,
Rod Sands and Rob Harvey, drafting Romney
ewes into their lines for the annual on-farm
Orari Gorge Station sale, north of Geraldine,
South Canterbury.
10 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021

11 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
Cashflow and Debt
Cashflow from operating activities saw a $17.0 million
outflow, following investments in working capital including
the carrying of higher levels of inventory and higher tax
payments. Capital expenditure was broadly in line with the
prior comparative period at $1.7 million.
Net interest-bearing debt as at 31 December 2021 was
$46.9 million. PGW renewed and extended its bank facilities
for a three-year term in late 2021.
Dividend
Following the pleasing performance of the business over
the first half of the financial year the Board declared a fully
imputed interim dividend of 14 cents per share which will
be paid on 1 April 2022 to shareholders on PGW’s share
register as at 5pm on 28 March 2022.
Environment and Sustainability
Fruitfed Supplies is the largest supplier to New Zealand’s
wine industry and during the period our Blenheim store
was awarded AA level British Retail Consortium Global
Standards (BRCGS) Certification for our winery products.
As an important part of the supply chain, we follow
thorough processes to ensure that our manufacturers and
suppliers have globally recognised food safety credentials
that are externally audited. To maintain and build our
market it is imperative that we meet the needs of our
clients in this regard. By gaining BRCGS Certification we
are demonstrating our commitment to our clients, and
it is a distinct advantage in securing new business. Over
time, we aim to replicate this certification to all our winery
serving Fruitfed Supplies’ sites.
Our stores in Marlborough and Hawke’s Bay worked
alongside Agrecovery, New Zealand’s growing rural
recycling programme, to trial free plastic recycling of
specific ag-chem and nutrient bags made from Low Density
Polyethylene. This initiative of offering more sustainable
alternatives of disposal enhances services to our clients
and strengthens our commitment to the environment.
Following the success of the trial, recycling these bags is
now available in these two regions and will be extended
nationwide in the future.
PGG Wrightson Senior Customer Service
Representative, Ewan Richmond, and Customer
Service Representative, Mandy Sanders,
recycling at the new purpose built store in
Alexandra, Central Otago.

12 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
Safety and Wellbeing
Our COVID -19 Response Working Group has continually
evaluated and determined the steps we take as an
organisation to ensure the ongoing safety and wellbeing of
our people and clients in response to the evolving risks and
challenges the pandemic presents.
The PGW Academy, established in 2006, focuses on
developing talent within the company to expand
employees’ knowledge base and grow their expertise.
Since its creation over 270 people have participated
in the programme and have gone on to enrich PGW
and the wider agricultural and horticultural industries.
Alongside our Trainee programmes, the Academy is one
of our key platforms for fostering talent within PGW and
we are encouraged with the high calibre of talent these
programmes attracted. Developing the expertise and
knowledge of our people is a key priority that is aligned
with our strategy of being the market leader in our
technical offering and support.
Website Refresh
Towards the end of 2021 we launched our refreshed Online
Account Services Portal which provides clients access to
their statement and invoice details. The refreshed portal
provides enhanced functionality, better visibility, and
improved site navigation, as well as the opportunity for us
to add new features and functionality in the future.
Our new corporate website has a contemporary design,
is more intuitive, easier to navigate, and provides an
enhanced experience for users. The refreshed website
is more representative of the depth and breadth of our
business.
Deloitte Top 200
We are proud to have been nominated as a finalist for
the 2021 Deloitte Top 200 ‘Most Improved Performance
Award’ which recognises an outstanding improvement in
performance among New Zealand’s largest businesses.
In selecting nominees, the judges look at the relative
improvement in all performance indicators, the source of
the improvement, and other ways the organisation has
changed and the impact of these changes.
This nomination represents external validation of the
positive results and outcomes that PGW has been achieving
and delivering upon for some time. It is nevertheless
pleasing to have those successes recognised in this way.
Outlook and Guidance Upgrade
The Directors are pleased with our first half results and are
encouraged by the positive outlook for the New Zealand
agricultural sectors. There continues to be high overseas
demand for red meat, a record pay-out forecast for dairy,
and demand for horticultural exports remain buoyant. The
Ministry for Primary Industries is predicting New Zealand’s
food and fibre export values will exceed a new high of $50
billion in the year to 30 June 2022. This context at a macro
level provides us with confidence that our clients and the
sector are well placed as we look towards the remainder of
this financial year and the medium term.
As a business, PGW is performing well and is clear about
its strategic priorities. We are executing upon our plans
effectively and seeing quality growth in our business and
earnings. Based upon this solid platform the Board has
determined to raise our full year guidance to 30 June 2022
to around $62 million at an Operating EBITDA level.
Notwithstanding these fundamentals, we remain cautious
about the potential impacts of Omicron, continued global
supply restrictions, and increases in input costs which could
all have some degree of influence on our results.
Acknowledgements
The Board and Executive team are extremely proud of
what has been achieved so far this year. The record
results are a testament of the continued dedication and
resilience of our people and the loyalty of our clients.
We thank our shareholders for their faith in our ability to
execute our strategic priorities.
Rodger Finlay
Chairman
Stephen Guerin
Chief Executive Officer

13 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
The Interim Consolidated Financial
Statements contained on pages 14–26
have been approved by the Board of
Directors on 21 February 2022.
Rodger Finlay
Chairman
Sarah Brown
Director and Audit Committee Chair
Key Financial Disclosures
For the six months ended 31 December 2021
PGG Wrightson Technical Field Representative,
Darryl Jones, uses Greenlight Farm
Management to complete a field inspection on
an oat crop, with Jamie Ward, Farm Manager
at Otanepae Station owned by Waipapa Trust,
near Taupō, Waikato.

14 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
KEY FINANCIAL DISCLOSURES
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2021 JUN 2021 DEC 2020*
NOTE $000 $000 $000
Continuing operations
Operating revenue 552,373 847,815 499,345
C
ost of sales (416,601) (624,589) (377,002)
Gross profit 135,772 223,226 122,343
Other income 21 366 69
Emplo
yee expenses (65,208) (119,828) (59,742)
Other operating expenses (23,157) (47,735) (23,084)
O
perating EBITDA 47,428 56,029 39,586
Non-operating gains/(losses) (63) 4,456 588
I
mpairment and fair value gains/(losses)
75

1,832

64
Depreciation and amortisation expense
(13,529)

(27,283)

(13,555)
EBIT 33,911 35,034 26,683
Net interest and finance costs
1

(2,860)

(5,621)

(2,884)
Profit from continuing operations before income tax
31,051

29,413

23,799
Income tax benefit/(expense) (8,546) (6,693) (6,753)
Profit from continuing operations, net of income tax 22,505 22,720 17,046
D
iscontinued operations
Results from discontinued operations, net of income tax
– (7) (6)
Profit/(loss) from discontinued operations, net of income tax – (7) (6)
Net profit after tax attributable to Shareholders of the Company 22,505 22,713 17,040
B
asic & diluted earnings per share (EPS)
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2021 JUN 2021 DEC 2020*
N
OTE

$000 $000
$000
Basic & diluted EPS on a weighted average basis 2 0.298 0.301 0.226
Basic & diluted EPS on a weighted average basis – continuing operations
2

0.298

0.301

0.226
*

Refer to Note 10 for fur
ther details on the restatement of the comparative figures.
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the six months ended 31 December 2021

15 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the six months ended 31 December 2021
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2021 JUN 2021 DEC 2020*
$000 $000 $000
Net profit after tax 22,505 22,713 17,040
Other comprehensive income/(loss):
Continuing operations
Items that will never be reclassified to profit or loss
Changes in fair value of equity instruments
7 136 136
Remeasurements of defined benefit liability (1,850) 9,620 4,255
Tax on remeasurements of defined benefit liability
518

(2,694)

(1,192)
Other comprehensive income/(loss) for continuing operations (1,325) 7,062 3,199
Total comprehensive income attributable to Shareholders of the Company 21,180 29,775 20,239
*
Refer to Note 10 for further details on the restatement of the comparative figures.
The accompanying notes form an integral part of these consolidated financial statements.

16 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT
For the six months ended / as at 31 December 2021
A. Operating segments
The Group has two primary operating segments, Agency and Retail & Water, which are the Group's strategic divisions. These operating segments
operate within New Zealand.
The two operating segments offer different products and services, and are managed separately because they require different skills, technology
and marketing strategies. Within each segment, further business unit analysis may be provided to management where there are significant
differences in the nature of activities. The Chief Executive Officer or Chairman of the Board reviews internal management reports on each strategic
business unit on at least a monthly basis.
The Group's segments are described below:
–
A
gency: This segment derives its revenue primarily from commissions in respect of rural Livestock, Wool and Real Estate transactions. This
segment also derives revenue from wool and velvet product sales, and interest revenue from its Go receivables.
–

Retail
& Water: This segment includes the Rural Supplies and Fruitfed Supplies retail operations, PGG Wrightson Water, PGW Consulting,
Agritrade, ancillary sales support and supply chain functions. This segment derives its revenue primarily from the sale of goods as well as the
design, installation and servicing of irrigation solutions.
–

O
ther: Other relates to certain Group Corporate activities including Governance, Finance, Treasury, Risk and Assurance and other support
services (such as corporate property services and marketing) and includes Group consolidation/elimination adjustments. The Marketing
function derives sales revenue from its rewards and on-charging programmes. Other also includes discontinued operations relating to PGW
Rural Capital Limited which was established to hold and recover certain excluded loans related to the historic sale of the Group's finance
subsidiary, PGG Wrightson Finance Limited.
Assets and liabilities allocated to each business unit combine to form total assets and liabilities for the Agency and Retail & Water business
segments. Certain other assets and liabilities are held at a Corporate level including those for the Corporate functions noted above. Similarly, the
profit/loss for each business unit combines to form total profit/loss of the Agency and Retail & Water business segments. Certain other revenues
and expenses are held at the Corporate level for the Corporate functions noted above.
Corporate costs allocation
The Group allocates certain Corporate costs to an operating segment where they can be directly attributed to that segment or using the following
methods:
–
IT har
dware, support, licence and other costs are attributed on a per user basis.
–
P
roperty costs which are not directly attributable are allocated on a property space utilisation basis.
– Business operations costs (Accounts Payable, Accounts Receivable, Call Centre) are allocated based on FTE usage by each operating segment
or transactional volumes. Credit Services costs are allocated to the operating segment to which overdue accounts relate.
Other costs such as non-operating gains/losses, impairment and fair value gains/losses, net interest and finance costs, income tax expense and the
results of discontinued operations are not fully allocated by the Group across the operating segments. The Group Governance, Finance, Treasury,
and Risk and Assurance functions continue to be reported outside of the operating segments.
B. Geographical segment
The Group operates within New Zealand only and its revenue is derived primarily from New Zealand.

17 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT (CONTINUED)
For the six months ended / as at 31 December 2021
(c) Operating Segment Information
AGENCY RETAIL & WATER OTHER TOTA L
UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
D
EC 2021
J
UN 2021
D
EC 2020*
D
EC 2021
J
UN 2021
D
EC 2020*
D
EC 2021
J
UN 2021
D
EC 2020*
D
EC 2021
J
UN 2021
D
EC 2020*
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Sales revenue 30,758 74,022 33,274 460,057 638,622 401,156 759 2,250 862 491,574 714,894 435,292
Commission revenue 49,250 107,685 48,944 50 79 51 53 58 62 49,353 107,822 49,057
C
onstruction contract revenue
–

–

–

8,471

18,950

11,749

–

–

–

8,471

18,950

11,749
I
nterest revenue on Go livestock receivables 1,794 3,805 2,018 – – – – – – 1,794 3,805 2,018
D
ebtor interest charges
239

615

341

242

848

388

(9)

(24)

20


472
1,439

749
Sublease income
201 356 200 169 118 77 339 431 203 709 905 480
Total external operating revenues 82,242 186,483 84,777 468,989 658,617 413,421 1,142 2,715 1,147 552,373 847,815 499,345
O
perating EBITDA
7,409

25,179

9,261

43,728

37,533

33,657

(3,709)

(6,683)

(3,332)

47,428

56,029

39,586

Non-operating gains/(losses)

(36)

3,885

52

5

991

765

(32)

(420)

(229)

(63)

4,456

588
Impairment and fair value gains/(losses) – 917 60 – 589 – 75 326 4 75 1,832 64
D
epreciation and amortisation expense
(4,122)

(8,457)

(4,136)

(7,646)

(15,060)

(7,551)

(1,761)

(3,766)

(1,868)


(13,529)
(27,283)

(13,555)
EBIT 3,251 21,524 5,237 36,087 24,053 26,871 (5,427) (10,543) (5,425) 33,911 35,034 26,683
Net int
erest and finance costs
(1,012)

(2,418)

(535)

(1,425)

(2,073)

(1,645)

(423)

(1,130)

(704)

(2,860)

(5,621)

(2,884)
Profit/(loss) from continuing operations before income tax 2,239 19,106 4,702 34,662 21,980 25,226 (5,850) (11,673) (6,129) 31,051 29,413 23,799
Income tax benefit/(expense)
(618)

(3,976)

(1,275)

(9,731)

(6,360)

(7,369)

1,803

3,643

1,891

(8,546)

(6,693)

(6,753)
P
rofit/(loss) from continuing operations, net of income tax
1,621

15,130

3,427

24,931

15,620

17,857

(4,047)

(8,030)

(4,238)


22,505
22,720

17,046
Profit/(loss) from discontinued operations, net of income tax – – – – – – – (7) (6) – (7) (6)
N
et profit/(loss) after tax
1,621

15,130

3,427

24,931

15,620

17,857

(4,047)

(8,037)

(4,244)

22,505

22,713

17,040
Segment assets 155,261 184,177 143,349 433,478 245,131 376,311 19,858 23,686 18,270 608,597 452,994 537,931
A
ssets held for sale
–

–

–

–

40

63

–

–

–

–

40

63
T
otal segment assets
155,261

184,177

143,349

433,478

245,171

376,374

19,858

23,686

18,270

608,597

453,034

537,994
T
otal segment liabilities
(63,751)

(101,147)

(57,770)

(293,475)

(155,907)

(254,119)

(69,086)

(22,442)

(52,760)

(426,312)

(279,496)

(364,649)
*
Refer to Note 10 for fur
ther details on the restatement of the comparative figures.
The accompanying notes form an integral part of these consolidated financial statements.

18 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2021
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2021 JUN 2021 DEC 2020*
NOTE $000 $000 $000
Cash flows from operating activities
Cash was provided from:
Receipts from customers 415,764 818,914 406,796
Receipt for the termination of partnering contract, net of costs – 3,934 –
Dividends received 1 1 1
Interest received 2,296 5,307 2,784
418,061 828,156 409,581
C
ash was applied to:
Payments to suppliers and employees
(427,767) (765,212) (402,684)
Lump sum contributions to defined benefit plans (ESCT inclusive) – (563) (563)
Interest paid (358) (646) (346)
Interest paid on lease liabilities (1,896) (4,036) (2,049)
Income tax paid (5,043) (28) (3)
(435,064)

(770,485)

(405,645)
Net cash inflow/(outflow) from operating activities (17,003) 57,671 3,936
Cash flows from investing activities
Cash was provided from:
P
roceeds from sale of property, plant and equipment and assets held for sale
46

3,294

401
Proceeds from sale of investments
7

136

136
53

3,430

537
C
ash was applied to:
Purchase of property, plant and equipment

(1,189)

(5,500)

(1,503)
P
urchase of intangibles
(473)

(1,309)

(23)
I
nvestment sale costs
–

(51)

(15)
(1,662)

(6,860)

(1,541)
N
et cash inflow/(outflow) from investing activities
(1,609)

(3,430)

(1,004)
C
ash flows from financing activities
Cash was provided from:
Increase in external borrowings and bank overdraft

38,100

–

–
38,100

–

–
C
ash was applied to:
Dividends paid to shareholders

(12,451)

(9,343)

–
R
epayment of external borrowings and bank overdraft
–

(40,100)

(9,000)
R
epayment of principal portion of lease liabilities
(9,291)

(18,299)

(9,036)
(21,742)

(67,742)

(18,036)
N
et cash inflow/(outflow) from financing activities
16,358

(67,742)

(18,036)
Net incr
ease/(decrease) in cash held
(2,254)

(13,501)

(15,104)
Opening cash

3,367

16,868

16,868
C
ash and cash equivalents
3

1,113

3,367

1,764
*

Refer to Note 10 for fur
ther details on the restatement of the comparative figures.
The accompanying notes form an integral part of these consolidated financial statements.

19 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
RECONCILIATION OF PROFIT AFTER TAX
WITH NET CASH FLOW FROM OPERATING ACTIVITIES
For the six months ended 31 December 2021
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2021 JUN 2021 DEC 2020*
$000 $000 $000
Profit after taxation 22,505 22,713 17,040
Add/(deduct) non-cash/non-operating items:
Depreciation and amortisation
13,529 27,283 13,555
Impairment and fair value losses (75) (1,832) (64)
R
eversal of software capital projects expensed in the current period – 750 750
Bad debts written off (net) (178) 67 690
Loss/(profit) on sale of assets/investments and lease terminations
41

(909)

(579)
Loss/(profit) from equity accounted investees 13 – 1
Foreign exchange loss/(gain) (116) 333 (32)
D
eferred tax expense/(benefit) 1,883 (258) 782
D
efined benefit expense/(gain) (91) 35 (68)
Pension contributions not expensed through profit or loss – (563) (563)
Other non-cash/non-operating items 59 83 21
Add/(deduct) movement in working capital items:
Change in inventories (30,137) 759 (13,299)
Change in accounts r
eceivable and prepayments (138,497) (22,694) (92,818)
Change in trade creditors, provisions and accruals 106,801 26,468 75,719
Change in income tax payable/receivable 1,621 6,917 4,566
Change in other current assets/liabilities
5,639

(1,481)

(1,765)
N
et cash inflow/(outflow) from operating activities
(17,003)

57,671

3,936
*

Refer to Note 10 for fur
ther details on the restatement of the comparative figures.
The accompanying notes form an integral part of these consolidated financial statements.

20 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2021
UNAUDITED AUDITED UNAUDITED
DEC 2021 JUN 2021 DEC 2020*
$000 $000 $000
ASSETS
Current
Cash and cash equivalents
1,113 3,367 1,764
Short-term derivative assets 605 843 1,425
Trade and other receivables 296,772 148,171 234,765
Go livestock receivables 35,805 45,869 30,582
I
nventories 111,939 81,498 100,413
Other current assets 1,154 2,842 930
Assets classified as held for sale – 40 63
Total current assets 447,388 282,630 369,942
Non-current
Long-term derivative assets
25

–

222
D
eferred tax asset
6,808

8,173

8,266
I
nvestments in equity accounted investees
79

92

78
O
ther investments
475

474

473
I
ntangible assets
14,905

15,663

14,166
R
ight-of-use assets
95,618

101,064

101,905
P
roperty, plant and equipment
43,299

44,627

42,942
D
efined benefit asset
–

311

–
T
otal non-current assets
161,209

170,404

168,052
T
otal assets
608,597

453,034

537,994
LIABILITIES
C
urrent
Debt due within one year
18,000

9,900

21,000
Shor
t-term derivative liabilities
494

242

584
A
ccounts payable and accruals
269,311

158,883

208,328
I
ncome tax payable
5,087

3,466

2,145
Shor
t-term lease liabilities
17,690

17,631

16,936
T
otal current liabilities
310,582

190,122

248,993
N
on-current
Long-term debt

30,000

–

20,000
Long-term derivative liabilities 52 143 –
L
ong-term lease liabilities
81,431

86,387

87,929
Other long-term liabilities 2,799 2,844 2,776
D
efined benefit liability
1,448

–

4,951
Total non-current liabilities 115,730 89,374 115,656
T
otal liabilities
426,312

279,496

364,649
EQUITY
Share capital

372,318

372,318

372,318
R
eserves
13,457

14,782

10,919
R
etained earnings
(203,490)

(213,562)

(209,892)
T
otal equity
182,285

173,538

173,345
T
otal liabilities and equity
608,597

453,034

537,994
*

Refer to Note 10 for fur
ther details on the restatement of the comparative figures.
The accompanying notes form an integral part of these consolidated financial statements.

PGG Wrightson Technical Horticultural Representative,
Tim Mounsey, discusses Phalaenopsis Orchids with
Lenny Arkesteyn, Production Manager at Moffatt’s
Flower Company, in Halswell, on the outskirts of
Christchurch, Canterbury.
21 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
Additional
Financial Disclosures
Including notes to the
Interim Consolidated Financial Statements
for the six months ended 31 December 2021

22 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
PGG WRIGHTSON LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2021
ADDITIONAL FINANCIAL DISCLOSURES
1 NET INTEREST AND FINANCE COSTS
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
DEC 2021 JUN 2021 DEC 2020
$000 $000 $000
Interest income 29 63 17
Interest funding expense
Bank interest on loans and overdraft
(358) (646) (347)
Bank facility fees (420) (908) (510)
(778) (1,554) (857)
Net interest income/(expense) excluding interest on lease liabilities (749) (1,491) (840)
Interest on lease liabilities (1,896) (4,036) (2,049)
Foreign exchange gain/(loss)
Net gain/(loss) on foreign denominated items 160 (217) (723)
F
air value gain/(loss) on foreign exchange derivatives
(375)

123

728
(215)

(94)

5
N
et interest and finance income/(expense)
(2,860)

(5,621)

(2,884)
2 EARNINGS PER SHARE (EPS) AND NET TANGIBLE ASSETS (NTA)
UNAUDITED AUDITED UNAUDITED
DEC 2021 JUN 2021 DEC 2020
000 000 000
Issued ordinary shares at the end of reporting period 75,484 75,484 75,484
Weighted average number of ordinary shares
Issued ordinary shares at the beginning of reporting period 75,484 75,484 75,484
W
eighted average number of ordinary shares outstanding
during the reporting period
75,484 75,484 75,484
UNAUDITED AUDITED UNAUDITED
6 MONTHS TO 12 MONTHS TO 6 MONTHS TO
D
EC 2021
J
UN 2021
D
EC 2020*

$000 $000
$000
Profit net of tax attributable to Shareholders of the Company 22,505 22,713 17,040
Profit from continuing operations (net of tax) attributable to Shareholders of the Company 22,505 22,720 17,046
Net tangible assets
Total assets
608,597

453,034

537,994
T
otal liabilities
(426,312)

(279,496)

(364,649)
less
intangible assets
(14,905)

(15,663)

(14,166)
less
deferred tax
(6,808)

(8,173)

(8,266)
N
et tangible assets
160,572

149,702

150,913
*

Refer to Note 10 for fur
ther details on the restatement of the comparative figures.

23 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
PGG WRIGHTSON LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2021
ADDITIONAL FINANCIAL DISCLOSURES
2 EARNINGS PER SHARE (EPS) AND NET TANGIBLE ASSETS (NTA) (CONTINUED)
UNAUDITED AUDITED UNAUDITED
6
MONTHS TO
1
2 MONTHS TO
6
MONTHS TO
DEC 2021 JUN 2021 DEC 2020*
$000 $000 $000
Basic EPS on a weighted average basis 0.298 0.301 0.226
Basic EPS on a weighted average basis – continuing operations 0.298 0.301 0.226
NT
A per issued ordinary shares at the end of period 2.127 1.983 1.999
3 CASH AND FINANCING FACILITIES
UNAUDITED AUDITED UNAUDITED
DEC 2021 JUN 2021 DEC 2020*
$000 $000 $000
Cash and cash equivalents 1,113 3,367 1,764
Current financing facilities (18,000) (9,900) (21,000)
Term financing facilities (30,000) – (20,000)
N
et interest-bearing (debt)/cash and cash equivalents (46,887) (6,533) (39,236)
Go livestock receivables 35,805 45,869 30,582
Net interest-bearing (debt)/cash and cash equivalents
after adjusting for Go livestock receivables (11,082) 39,336 (8,654)
Financing facilities
During the period, the Company renegotiated its syndicated bank facility. The amended facility, which commenced on 13 December 2021,
provides the following:
– Term debt facility of $60.00 million maturing on 6 December 2024
– Working capital facilities of up to $70.00 million maturing on 6 December 2024 (subject to an annual Clean Down)
The syndicated facilities fund the general corporate activities of the Group, the seasonal fluctuations in working capital, and the Go livestock
receivables.
The Company has granted a general security deed and mortgage over all its wholly-owned New Zealand assets to a security trust. Bank of New
Zealand acts as facility agent and security trustee for the banking syndicate, which comprises Bank of New Zealand, Cooperatieve Rabobank U.A.
(New Zealand branch) and Westpac New Zealand Limited. The agreement contains various financial covenants and restrictions that are standard
for facilities of this nature, including maximum permissible ratios for debt leverage and operating leverage, together with limits for Go receivables,
capital expenditure and asset disposals.
The syndicated facility agreement allows the Group, subject to certain conditions, to enter into additional facilities outside of the Company's
syndicated facility. The additional facilities are guaranteed by the security trust. These facilities amounted to $6.58 million as at 31 December 2021.
–

O
verdraft facilities of $3.00 million
–
Guarant
ee, letters of credit and trade finance facilities of $3.58 million
*

Refer to Note 10 for fur
ther details on the restatement of the comparative figures.

24 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
PGG WRIGHTSON LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2021
ADDITIONAL FINANCIAL DISCLOSURES
4 PROPERTY, PLANT AND EQUIPMENT
Acquisitions
During the period to 31 December 2021, the Group acquired assets with a cost of $1.19 million (30 June 2021: $5.50 million, 31 December 2020:
$0.75 million).
Disposals
The Group disposed of assets with a net book value of $0.03 million during the period to 31 December 2021 (30 June 2021: $2.24 million,
31 December 2020: $1.93 million), resulting in a gain on disposal of $0.02 million (30 June 2021 Gain: $1.05 million, 31 December 2020 Gain:
$0.61 million).
5 RIGHT-OF-USE ASSETS
Additions, modifications & reassessments
During the period to 31 December 2021, the Group had lease additions of $2.44 million (30 June 2021: $13.46 million, 31 December 2020: $4.49
million). Lease modifications and reassessments resulted in an increase in right-of-use assets of $2.33 million (30 June 2021 Increase: $2.39 million,
31 December 2020 Increase: $2.26 million).
Terminations
During the period to 31 December 2021, the Group had lease terminations which resulted in a reduction in right-of-use assets of $0.33 million (30
June 2021: $0.45 million, 31 December 2020: $0.40 million).
6 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A. PGG Wrightson Loyalty Reward Programme
The Group recognises a provision for the expected level of points redemption from the PGG Wrightson Loyalty Reward Programme. As at 31
December 2021, the balance of live points which does not form part of the recognised provision total $0.10 million (30 June 2021: $0.09 million; 31
December 2020: $0.09 million). Losses are not expected to arise from this contingent liability.
B. Contingent liabilities
The Group may receive client claims as part of the ordinary course of business in the supply of goods and services. The Group will pursue recovery
of claims with suppliers where appropriate under terms of trade. Accordingly, the amount of any obligation in respect of these claims or potential
claims cannot be estimated with sufficient reliability.
7 SEASONALITY OF OPERATIONS
The Group is subject to significant seasonal fluctuations. The Retail businesses' earnings are skewed towards the first half of the financial year as
demand for New Zealand farming inputs are generally weighted towards the spring season. Livestock trading is weighted towards the second half
of the financial year in order for farmers to maximise their income as New Zealand generally has spring calving and lambing. Other business units
have similar but less material cycles. The Group recognises that this seasonality is the nature of the industry and plans and manages its business
accordingly.

25 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
PGG WRIGHTSON LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2021
ADDITIONAL FINANCIAL DISCLOSURES
8 SUBSEQUENT EVENTS
Dividend
On 21 February 2022, the Directors of PGG Wrightson Limited resolved to pay an interim dividend of 14 cents per share on 1 April 2022 to the
shareholders on the Company's share register as at 5.00pm on 28 March 2022. This dividend will be fully imputed.
9 REPORTING ENTITY
PGG Wrightson Limited (the "Company") is a company domiciled in New Zealand and registered under the Companies Act 1993 in New Zealand.
The Company's registered office is at 1 Robin Mann Place, Christchurch. The Company is listed on the New Zealand Stock Exchange and is an FMC
Entity for the purposes of the Financial Markets Conduct Act 2013.
The interim consolidated financial statements of PGG Wrightson Limited for the six months ended 31 December 2021 comprise the Company and
its subsidiaries (together referred to as the "Group").
The Group is primarily involved in the provision of goods and services within the agricultural and horticultural sectors.
10 BASIS OF PREPARATION
Statement of compliance
These interim consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
("NZ GAAP"). They comply with International Financial Reporting Standards ("IFRS) issued by the International Accounting Standards Board,
the New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable Financial Reporting Standards as
appropriate for a Tier 1 for-profit entity, and in particular NZ IAS 34 Interim Financial Reporting.
These interim consolidated financial statements do not include all of the information required for full annual consolidated financial statements.
Unless otherwise specified, the same accounting policies and methods of computation are followed in the interim consolidated financial
statements as applied in the Group's latest annual audited consolidated financial statements.
Comparative amounts have been restated to conform with the current period's presentation for the treatment of Software as a Service (SaaS) and
closing inventory valuation which were restated at 30 June 2021. The impact of the restatement to the comparative 31 December 2020 period is
a reduction in NPAT of $1.00 million, the derecognition of $1.66 million of software intangible assets and reduction in closing inventories of $4.72
million with the balance of $3.6 million reducing retained earnings.
Refer to the Groups audited consolidated financial statements for the year ended 30 June 2021 for further disclosures (Note 29) in relation to the
restatements.
Management has determined that the COVID-19 pandemic has not significantly impacted the estimates and judgements used on the
consolidated statement of financial position as at 31 December 2021. Management will continue to monitor and assess the impacts of future
developments of COVID-19, which are highly uncertain and cannot be predicted, on its judgements and estimates.
These interim consolidated financial statements were approved by the Board of Directors on 21 February 2022.
Standards issued but not yet effective
A number of new standards and interpretations are not yet effective for the period ended 31 December 2021 and have not been applied
in preparing these interim consolidated financial statements. These standards are not expected to have a material impact on the Group's
financial results.

26 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2021
REALISED CAPITAL
SHARE AND REVALUATION DEFINED BENEFIT FAIR VALUE RETAINED TOTAL
C
APITAL
RESER
VE
PLAN
RESERVE
RESER
VE
EARNINGS EQUIT
Y
$000 $000 $000 $000 $000 $000
Balance at 1 July 2020 372,318 24,662 (14,510) (2,566) (226,798) 153,106
Total comprehensive income for the period
Profit or loss
– – – – 17,040 17,040
Other comprehensive income
Changes in fair value of equity instruments – – – 136 – 136
Defined benefit plan actuarial gain/(loss), net of tax – – 3,063 – – 3,063
T
otal other comprehensive income – – 3,063 136 – 3,199
Total comprehensive income for the period – – 3,063 136 17,040 20,239
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders
–

–

–

–

–

–
T
otal contributions by and distributions to shareholders
–

–

–

–

–

–
T
ransfer to retained earnings
–

–

134

–

(134)

–
B
alance at 31 December 2020
372,318

24,662

(11,313)

(2,430)

(209,892)

173,345
Balance at 1 J
anuary 2021 372,318 24,662 (11,313) (2,430) (209,892) 173,345
Total comprehensive income for the period
Profit or loss
– – – – 5,673 5,673
O
ther comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax
– – 3,863 – – 3,863
T
otal other comprehensive income
–

–

3,863

–

–

3,863
Total comprehensive income for the period – – 3,863 – 5,673 9,536
T
ransactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders
–

–

–

–

(9,343)

(9,343)
T
otal contributions by and distributions to shareholders
–

–

–

–

(9,343)

(9,343)
B
alance at 30 June 2021
372,318

24,662

(7,450)

(2,430)

(213,562)

173,538
Balance at 1 July 2021

372,318

24,662

(7,450)

(2,430)

(213,562)

173,538
T
otal comprehensive income for the period
Profit or loss

–

–

–

–

22,505

22,505
O
ther comprehensive income
Changes in fair value of equity instruments

–

–

–

7

–

7
D
efined benefit plan actuarial gain/(loss), net of tax
–

–

(1,332)

–

–

(1,332)
T
otal other comprehensive income
–

–

(1,332)

7

–

(1,325)
T
otal comprehensive income for the period
–

–

(1,332)

7

22,505

21,180
T
ransactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders

–

–

–

–

(12,433)

(12,433)
T
otal contributions by and distributions to shareholders
–

–

–

–

(12,433)

(12,433)
T
ransfer to retained earnings
–

–

–

–

–

–
Balance at 31 December 2021 372,318 24,662 (8,782) (2,423) (203,490) 182,285

27 | PGG WRIGHTSON LIMITED HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2021
PGG WRIGHTSON LIMITED
CORPORATE DIRECTORY
Company number 142962
NZBN 9429040323497
Board of Directors
As at 31 December 2021
Rodger Finlay
Chairman
Joo Hai Lee
Deputy Chairman
Sarah Brown
U Kean Seng
Dr Charlotte Severne
Executive Team
As at 31 December 2021
Stephen Guerin
Chief Executive Officer
Peter Scott
Chief Financial Officer
Julian Daly
General Manager Corporate Affairs/
Company Secretary
Rachel Shearer
General Manager Human Resources
Nick Berry
General Manager Retail & Water
Peter Newbold
General Manager Livestock & Real Estate
Grant Edwards
General Manager Wool
Peter Moore
General Manager Livestock Ventures
& Partnerships
Registered Office
PGG Wrightson Limited
1 Robin Mann Place
Christchurch Airport
Christchurch 8053
PO Box 292
Christchurch 8140
Telephone:
0800 10 22 76 (NZ only)
+64 3 372 0800 (International)
Email: enquiries@pggwrightson.co.nz
Auditors
Ernst & Young
Level 4
93 Cambridge Terrace
PO Box 2091
Christchurch 8140
Telephone: +64 3 379 1870
Managing your shareholding online:
To change your address, update your payment instructions and to
view your investment portfolio, including transactions, please visit:
www.investorcentre.com/nz
General enquiries can be directed to:
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland 0622
enquiry@computershare.co.nz
Private Bag 92119, Auckland 1142, New Zealand
Telephone +64 9 488 8777
Facsimile +64 9 488 8787
Please assist our registrar by quoting your CSN or
shareholder number.
Back cover image
PGG Wrightson Sales Manager
- Real Estate, Craig Bates, and
Wendy and Richard Farquhar,
vendors of Bellfield, Highcliff,
near Dunedin, look across the
Otago Peninsular.