PGW - PGG Wrightson

[Left Field]

Struggling to maintain the momentum after a record year in a market they say is 'volatile'.

https://www.nzx.com/announcements/416337

Financial highlights for the year to 30 June 2023 included:

� Operating EBITDA2 of $61.2 million (down $6.0 million or 9% on prior financial year)
� Net profit after tax (NPAT) of $17.5 million (down $6.8 million or 28% on prior financial year)
� Revenue of $975.7 million (up $23.0 million or 2% on prior financial year)
� Fully imputed final dividend of 10 cents per share (22 cents per share for full year)
� Second-strongest trading performance for the business since the PGW Seeds divestment (bettered only by last year's record result)

[kiwi2007]

Looks like the seller's back. Down around 10% in the last couple of days.

Buy side 670 - sell side 35,299

The only analyst in the last three months calls it a sell.

[Ricky Bobby]

Farmers have stopped buying... heard they are getting pretty concerned. Just picked up some fert at a good discount

[BlackPeter]

Farmlands and Ruralco reporting losses. Just wondering what this might mean for PGW?

https://businessdesk.co.nz/article/finance/farm-retailers-profits-hit-as-on-farm-inflation-bites

(probably paywalled)

[Davexl]

Given that "Alan" Lai is a confirmed crook (SEC judgement on Agria assets inflated values),
see todays NBR article "Another fine mess at PGW - blame the OIO",
and that the OIO didn't punish Agria by taking their shareholding back to 25% as they supposedly should have,
it is imperative to vote this down at any upcoming meeting. OIO - are you missing in action again ?
No - we don't want him as Chairman once again...

[Oliver Mander]

Evening all...this was published by NZSA early this morning.
https://www.nzshareholders.co.nz/scrip-article/with-shareholders-like-this-who-needs-enemies/
(Disclosure - I am NZSA's CEO)

[Basil]

Welcome to the forum Oliver.  Its really nice to have you on board.
Nicely written.
Cheers
Basil AKA Beagle.

[Shareguy]

Evening all...this was published by NZSA early this morning.
https://www.nzshareholders.co.nz/scrip-article/with-shareholders-like-this-who-needs-enemies/
(Disclosure - I am NZSA's CEO)

Great article. Very interesting. Thanks for posting and welcome to stocktalk.

[snapiti]

Farmlands and Ruralco reporting losses. Just wondering what this might mean for PGW?

https://businessdesk.co.nz/article/finance/farm-retailers-profits-hit-as-on-farm-inflation-bites

(probably paywalled)

on the face of it comparing Farmlands with PGW should work however the CEO of Farmlands is pushing forward with a mammoth product range change which includes less space on the shelves for farming supply options and more space for the likes of scented candles and pots and pans.
Interesting strategy, me thinks the CEO of Farmlands should have stayed at her last job

[Hectorplains]

Evening all...this was published by NZSA early this morning.
https://www.nzshareholders.co.nz/scrip-article/with-shareholders-like-this-who-needs-enemies/
(Disclosure - I am NZSA's CEO)

Nice work... more red flags than a may day parade. 

[BlackPeter]

Evening all...this was published by NZSA early this morning.
https://www.nzshareholders.co.nz/scrip-article/with-shareholders-like-this-who-needs-enemies/
(Disclosure - I am NZSA's CEO)

Hi Oliver, welcome on our channel! ... and yes, nice work from the NZSA. Quite concerning situation for the governance of one of our crucial agricultural suppliers.

[Davexl]

Evening all...this was published by NZSA early this morning.
https://www.nzshareholders.co.nz/scrip-article/with-shareholders-like-this-who-needs-enemies/
(Disclosure - I am NZSA's CEO)

Thanks Oliver for being all over this situation on our (minorities) behalf...great that PGW have already
taken action to appoint a new Independent Chairman (didn't know they could that without a vote!)...

[Left Field]

Downgrade, not nice for holders.

https://www.nzx.com/announcements/429748

Operating EBITDA forecast for FY24 to be around $43 million

PGG Wrightson Limited1 (PGW) announced today it has revised its Operating EBITDA2 to be around $43 million (from $50 million) for the financial year to 30 June 2024.

PGW Chair, Garry Moore said that "Since releasing our half-year results in February, trading conditions have deteriorated because of market conditions that are impacting the whole of the agricultural sector. Features that are contributing to the restrained spend patterns we are seeing include:

� Drought conditions with soil moisture deficits against historic averages across much of the East Coast, Tasman and Northland over the first quarter of 2024.
� Weak sheep meat demand from China and increased supply culminating in lower farmgate returns.
� Interest rates and input costs remain elevated, impacting on-farm and on-orchard profitability with clients looking to reduce debt and defer spend.
� Although the harvest season has been broadly positive there is a time lag in the conversion cycle before farmers and growers see the financial benefits from their harvest production.

[Davexl]

Snoopy on the other blog, calling it the third downgrade, 52 to 50 to 43, calling a bottom and buying up...
SP up over 3%

[Ricky Bobby]

I would be very cautious buying into this at the moment.. still plenty of pain to come in the Ag/Hort sector