Full Year 2026 PGG Wrightson Ltd Earnings Call

August 10, 2026

Operator 1: Thank you for standing by, and welcome to the PGG Wrightson full year results announcement. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question on the phone line, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Stephen Guerin, Chief Executive Officer. Please go ahead.

Operator: Thank you for standing by, and welcome to the PGG Wrightson Full Year Results Announcement. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question on the phone line, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Stephen Guerin, Chief Executive Officer. Please go ahead.

Speaker #1: If you wish to ask a question on the phone line, you will need to press the star key, followed by the number 1 on your telephone keypad.

Speaker #1: I would now like to hand the conference over to Mr. Stephen Gearin, Chief Executive Officer. Please go ahead.

Speaker #2: Thank you, Ashley. Morena, good morning, and welcome to the PGG Wrightson results presentation for the financial year ended 30 June 2026. As Ashley has introduced, I am Stephen Guerin, the Chief Executive Officer for PGG Wrightson, and it's my pleasure today to provide a brief overview of our results for the financial year to June 2026.

Stephen Guerin: Thank you, Ashley. Good morning and welcome to the PGG Wrightson results presentation for the financial year to 30 June 2026. As Ashley has introduced, I am Stephen Guerin, the Chief Executive Officer for PGG Wrightson, and it is my pleasure today to provide a brief overview of our results for the financial year to June 2026. With me on this webcast are Peter Scott, our CFO, and Julian Daly, our General Manager Corporate Affairs, who is also the Company Secretary. During the call today, I will cover this year's financial results, our trading performance, key themes and initiatives, and some thoughts on the year ahead. There will be some time for questions at the end of the call, both on the telephone call and via the new technology we are using today.

Speaker #2: With me on this webcast are Peter Scott, our CFO, and Julian Dalley, our General Manager of Corporate Affairs, who is also the Company Secretary.

Speaker #2: During the call today, I will cover the year's financial results, our trading performance, key themes and initiatives, and some thoughts on the year ahead.

Stephen Guerin: During the call today, I will cover this year's financial results, our trading performance, key themes and initiatives, and some thoughts on the year ahead. There will be some time for questions at the end of the call, both on the telephone call and via the new technology we are using today.

Speaker #2: There will be some time for questions at the end of the call, both on the telephone call and via the new technology we're using today, for those who are on the webcast and the Slido—which you'll see details about when you registered for the webcast.

Stephen Guerin: For those who are on the webcast and the Slido, which you will have seen details when you have been registering for the webcast, Julian Daly will be acting as moderator for those questions on Slido. Before I start today, I would like to acknowledge PGW's 175th year anniversary. Since May 1851, when George Gould opened Christchurch's first general store, PGG Wrightson and the businesses that they have come to before have walked alongside New Zealand farmers and growers, adapting to changing markets, new technologies, and shifting needs of our rural communities. The predecessor companies include Pyne Gould Guinness, Wrightson NMA, Dalgety, and Williams & Kettle, which is my own heritage in the business, and many more. As we like to say, the PGW of today leverages our 175 years of heritage while embracing innovation to shape the future of agriculture.

Speaker #2: Julian Dalley will be acting as moderator for those questions on Slido. Before I start today, I'd like to acknowledge PGW's 175th year anniversary. Since May 1851, when George Gould opened Christchurch's first general store, PGG Wrightson and the businesses that have come before have walked alongside New Zealand’s farmers and growers, adapting to changing markets, new technologies, and shifting needs of our rural communities.

Speaker #2: The predecessor companies include PGG, Pinegull Guinness, Wrightson NMA, Dell Kitty, and Williams & Kittle—which is my own heritage in the business—and many more.

Stephen Guerin: The predecessor companies include Pyne Gould Guinness, Wrightson NMA, Dalgety, and Williams & Kettle, which is my own heritage in the business, and many more. As we like to say, the PGW of today leverages our 175 years of heritage while embracing innovation to shape the future of agriculture.

Speaker #2: As we like to say, the PGW of today leverages our 175 years of heritage while embracing innovation to shape the future of agriculture. Turning to our financial results:

Stephen Guerin: Turning to our financial results, I will comment briefly on our headline results for the year ending 30 June 2026. Operating revenue of NZD 1.1 billion, up NZD 99 million or 10% on the prior financial year. Operating EBITDA of NZD 64.3 million, up NZD 8.2 million or 15% on the prior financial year. Net profit after tax of NZD 15.6 million, up NZD 4.9 million or 46% on the prior financial year. Earnings per share of 20.6 cents per share, up 6.5 cents per share on the prior financial year. Cash flow from operating activities of NZD 52.6 million, up NZD 40.2 million on the prior financial year. Fully imputed final dividend of 5.5 cents per share, which is 10 cents per share for the full year, has been declared by the directors. FY26 results reflect disciplined progress across three strategic key performance indicator measures that contribute to our long-term success.

Speaker #2: We'd like to briefly comment on our headline results for the year ended 30th of June, 2026. Operating revenue was $1.1 billion, up $99 million, or 10%, on the prior financial year.

Speaker #2: Operating EBITDA of $64.3 million, up $8.2 million or 15% on the prior financial year. Net profit after tax of $15.6 million, up $4.9 million or 46% on the prior financial year.

Speaker #2: Earnings per share of 20.6 cents per year, up 6.5 cents on the prior financial year. Cash flow from operating activities of $52.6 million, up $40.2 million on the prior financial year.

Speaker #2: A fully imputed final dividend of 5.5 cents per share, which is 10 cents per share for the full year, has been declared by the directors.

Stephen Guerin: Fully imputed final dividend of 5.5 cents per share, which is 10 cents per share for the full year, has been declared by the directors. FY26 results reflect disciplined progress across three strategic key performance indicator measures that contribute to our long-term success.

Speaker #2: Our FY26 results reflect disciplined progress across three key strategic market performance indicators—measures that contribute to our long-term success. That's our financial performance, our safety performance, and the experience we deliver to our customers.

Stephen Guerin: That is the financial performance, our safety performance, and the experience we deliver to our customers. In terms of each of those measures, our EBIT KPI, which is normalized earnings before interest and tax of greater than 10%, normalized growth over three years on a rolling cycle. Following the FY26 result, we achieved the business measure with a growth of 91% over the three years rolling cycle, reflecting significant increase of earnings. A target of 10% growth and return on capital over the three-year rolling cycle. We missed this measure with an average of 8.1% over the three-year rolling cycle, impacted by the tough market conditions we experienced in FY24. Our earnings per share target for FY26 of 15.7 cents.

Speaker #2: In terms of each of those measures, our EBIT KPI, which is normalised earnings before interest and tax, is greater than 10%. That's normalised growth over three years on a rolling cycle.

Speaker #2: Following the FY26 result, we achieved the measure with a growth of 91% over the three-year rolling cycle, reflecting a significant increase in earnings. We set a target of 10% growth in return on capital over the three-year rolling cycle.

Stephen Guerin: A target of 10% growth and return on capital over the three-year rolling cycle. We missed this measure with an average of 8.1% over the three-year rolling cycle, impacted by the tough market conditions we experienced in FY24. Our earnings per share target for FY26 of 15.7 cents.

Speaker #2: We missed this measure with an average of 8.1% over the three-year rolling cycle, impacted by the tough market conditions we experienced in FY24. Our earnings per share target for FY26 is 15.7 cents.

Speaker #2: We exceeded our earnings per share target with our 20.6 cents per share result, benefiting from much improved operating results across the Rural Supplies, Livestock, and Real Estate businesses in particular.

Stephen Guerin: We exceeded our earnings per share target with our 20.6 cents per share result benefiting from much lower improved operating result across the Rural Supplies, livestock, and real estate businesses in particular. Our safety performance, the continuous annual improvement of PGW's total recordable injury frequency rate. I am pleased to report that PGW recorded a 3.5% decrease in our TRIFR compared to the prior year. Ensuring our people return home safe and well each day is a collective priority, and we are committed to building a stronger and safer orientated culture within the business. Our customer experience KPI, which is the continuous annual improvement on PGW's Net Promoter Score measures. Independent market research has confirmed a significant year-on-year increase in PGW's Net Promoter Score in FY25, meeting our KPI.

Speaker #2: Our safety performance: the continuous annual improvement of PGW's total recordable injury frequency rate, and I'm pleased to report that at PGW, we recorded a 3.5% decrease in our TRIFA compared to the prior year.

Speaker #2: Ensuring our people return home safe and well each day is a collective priority, and we're committed to building a stronger, safer, and more safety-orientated culture within the business.

Speaker #2: Our customer experience KPI, which is a continuous annual improvement on PGW's Net Promoter Score measures—independent market research has confirmed a significant year-on-year increase in PGW's Net Promoter Score in FY25.

Stephen Guerin: Our customer experience KPI, which is the continuous annual improvement on PGW's Net Promoter Score measures. Independent market research has confirmed a significant year-on-year increase in PGW's Net Promoter Score in FY25, meeting our KPI.

Speaker #2: To FY25, meaning our KPI. Given the importance of customer experience to sustainable business performance, we focus on continuous improvement in this widely used measure of customer satisfaction, in order to be based on customers' willingness to recommend our business to others.

Stephen Guerin: Given the importance of customer experience to sustainable business performance, we focus on continuous improvement in this widely used measure of customer satisfaction and loyalty based on customers' willingness to recommend our business to others. Into the group highlights. Our strategy continues to guide decision-making across the group, providing a framework for investment, innovation, and growth. By refocusing our prioritized economic drivers, we have strengthened our customer offering, enhanced operational capability, and continue to build on PGW's position as a trusted partner to farmers and growers. During FY26, we made further progress on several initiatives designed to strengthen our customer offering, build our technical capability, support long-term growth. Key initiatives during the year included the acquisition of Nexan, the manufacturer of the Nexan and VETMED animal health brands, which has been distributed through the agri-trade to our Rural Supplies and Fruitfed Supplies stores, other rural merchants, and vet practices.

Speaker #2: Into the group highlights. Our strategy continues to guide decision-making across the group, providing a framework for investment, innovation, and growth. By refocusing our prioritised economic drivers, we have strengthened our customer offering, enhanced operational capability, and continued to build on PGW's position as a trusted partner to farmers and growers.

Stephen Guerin: By refocusing our prioritized economic drivers, we have strengthened our customer offering, enhanced operational capability, and continue to build on PGW's position as a trusted partner to farmers and growers. During FY26, we made further progress on several initiatives designed to strengthen our customer offering, build our technical capability, support long-term growth.

Speaker #2: During FY26, we made further progress on several initiatives designed to strengthen our customer offering, building a technical capability to support long-term growth. Key initiatives during the year included the acquisition of Nexent, a manufacturer of the Nexent and VetMed Animal Health brands, which have been distributed through AgriTrade to our rural supplies and fruit food supply stores, other rural merchants, and vet practices.

Stephen Guerin: Key initiatives during the year included the acquisition of Nexan, the manufacturer of the Nexan and VETMED animal health brands, which has been distributed through the agri-trade to our Rural Supplies and Fruitfed Supplies stores, other rural merchants, and vet practices.

Speaker #2: Nexent provides a strong strategic fit to our reverse integration strategy and builds out an animal health product offering. Establishing our private BlueAg labour portfolio of registered agrochemical active ingredients improves our supply chain resilience and provides customers with greater choice.

Stephen Guerin: Nexan provides a strong strategic fit to our vertical integration strategy and builds out an animal health product offering. Establishing our private Blue Ag global portfolio of registered agrochemical active ingredients, which improves our supply chain resilience and provides customers greater choice. We leased our new R&D facilities, which expanded our R&D capabilities through investment in a dedicated R&D station, Hastings, supporting innovation and accelerating the delivery of evidence-based solutions for farmers and growers. Our livestock supply chain partnerships gained momentum during the year, with increasing volumes being directed through preferred processor channels. PGW recorded a 23% reduction in operating greenhouse gas emissions from our FY21 baseline. This figure is currently undergoing assurance checks, and we have some caution to confirm that in due course. This is primarily attributed to the continued rollout of our hybrid vehicles into our fleet.

Speaker #2: Released the new R&D facilities, which expanded our R&D capabilities through investment in a dedicated R&D station in Hastings, supporting innovation and accelerating the delivery of evidence-based solutions for farmers and growers.

Speaker #2: Our livestock supply chain partnerships gained momentum during the year, with increasing volumes being directed through preferred processor channels. PGW recorded a 23% reduction in operating greenhouse gas emissions from an FY21 baseline.

Stephen Guerin: Our livestock supply chain partnerships gained momentum during the year, with increasing volumes being directed through preferred processor channels. PGW recorded a 23% reduction in operating greenhouse gas emissions from our FY21 baseline. This figure is currently undergoing assurance checks, and we have some caution to confirm that in due course. This is primarily attributed to the continued rollout of our hybrid vehicles into our fleet.

Speaker #2: This figure is currently undergoing assurance checks, so we have some caution to confirm that in due course. This is primarily attributed to the continued rollout of our hybrid fleet vehicles into our fleet.

Speaker #2: Dairy real estate sales volumes increased 30%, and horticultural sales volume increased 60% year-on-year. We expanded our Go Stock offering to provide farmers with greater financial flexibility while supporting long-term customer growth and loyalty.

Stephen Guerin: Dairy real estate sales volumes increased 30%, and horticultural sales volume increased 60% year-on-year. We expanded our GO-STOCK offering to provide farmers with greater financial flexibility while supporting long-term customer growth and loyalty. Our PGG Wrightson Wool business consolidated its auction activities into a national open-cry wool auction, creating a single marketplace to maximize buyer participation, competition for growers' wool across New Zealand. Our bidr platform market penetration continued to deepen the market penetration for this product to expand digital livestock trading networks, increasing transaction volumes, and provide customers with greater market access and flexibility. Approximately 30% of all our sale yard bids were placed through the bidr platform, reflecting the growing online role of digital participation in livestock trading markets. The strong seasonal nature of our business means most of our earnings occur in the H1 of the financial year.

Speaker #2: Our PGW wool business consolidated auction activities into a national open-cry wool auction, creating a single marketplace to maximise buyer participation and competition for growers' wool from across New Zealand.

Speaker #2: Our bidder platform market penetration continued to deepen the market penetration for this product. To expand digital livestock training networks, increasing transaction volumes and providing customers with greater market access and flexibility.

Stephen Guerin: Our bidr platform market penetration continued to deepen the market penetration for this product to expand digital livestock trading networks, increasing transaction volumes, and provide customers with greater market access and flexibility. Approximately 30% of all our sale yard bids were placed through the bidr platform, reflecting the growing online role of digital participation in livestock trading markets. The strong seasonal nature of our business means most of our earnings occur in the H1 of the financial year.

Speaker #2: Approximately 30% of all of our sales, of our bids, were placed through the bidder platform, reflecting the growing online role of digital participation in livestock trading markets.

Speaker #2: The strong seasonal nature of our business means most of our earnings occur in the first half of the financial year. The retail business contributes more strongly in the first half.

Stephen Guerin: The Retail & Water business contributes more strongly in the H1, reflecting the strong spring trading activity. Livestock typically generates a large portion of its earnings in the H2 of the year due to the timing of livestock transactions and dairy forward contracts. Revenue of NZD 1.1 billion represents an increase of NZD 99 million or 10% over the prior year. This marks the first time PGW has exceeded NZD 1 billion in revenue since the divestment of PGG Wrightson Seeds in 2019, which is a positive indicator of the continued growth of our business. The Retail & Water business operating revenue of NZD 851.2 million was up NZD 78.3 million or 10%. Our Agencies group operating revenue was NZD 221.5 million, up NZD 20.5 million or 10%. Turning to each of the business units within the group. The Retail & Water group, first.

Speaker #1: In the strong spring trading activity, livestock typically generates a large portion of its earnings in the second half of the year due to the timing of livestock transactions and dairy forward contracts. Revenue of $1.1 billion represents an increase of $99 million, or 10%, over the prior year. This marks the first time PG has exceeded $1 billion in revenue since the divestment of PGG Wrightson Ltd in 2019, which is a positive indicator of the continued growth of our business.

Speaker #1: The retail awarded business operating revenue of 851.2 million was up 78.3 million , or 10% . Our agencies group operating revenue was 221.5 million , up 20.5 million , or 10% .

Stephen Guerin: The Retail & Water business operating revenue of NZD 851.2 million was up NZD 78.3 million or 10%. Our Agencies group operating revenue was NZD 221.5 million, up NZD 20.5 million or 10%. Turning to each of the business units within the group. The Retail & Water group, first.

Speaker #1: Turning to each of the business units within the group, the Retail Water group finished—this business unit recorded operating EBITDA of $44.5 million.

Stephen Guerin: This business unit recorded operating EBITDA of NZD 44.5 million, an improvement of NZD 2.3 million or 6% from the prior year's results. The Rural Supplies business benefited from reinvestment in on-farm activity by our customers. Rural Supplies delivered strong results, supported by favorable market conditions and sales execution across the business. Farmer confidence remained positive across most sectors, supporting increased on-farm spending and investment. Our Fruitfed Supplies business experienced a solid year, with increased revenue despite challenging conditions across parts of the horticultural sector. Market conditions varied across the sectors during the year. The kiwifruit sector remained a key contributor to performance, supported by ongoing orchard development and continued investment across the industry. The grape and wine sector remains subdued, with reduced harvest and low wine production impacting demand across several product categories. Our farming also experienced lower returns, continuing to constrain margins. Turning to our Agency business.

Speaker #1: An improvement of $2.3 million, or 6%, from the prior year's results. The Rural Supplies business benefited from reinvestment in on-farm activity by our customers. Rural Supplies delivered strong results, supported by favorable market conditions and sales execution across the business.

Speaker #1: Farmer confidence remained positive across most sectors , supporting increased on farm spending and investment . Our fruit food supplies business experienced a solid year with increased revenue despite challenging conditions across parts of the horticultural sector .

Stephen Guerin: Our Fruitfed Supplies business experienced a solid year, with increased revenue despite challenging conditions across parts of the horticultural sector. Market conditions varied across the sectors during the year. The kiwifruit sector remained a key contributor to performance, supported by ongoing orchard development and continued investment across the industry.

Speaker #1: Market conditions varied across the sectors during the year. The key sector remained a key tributary of performance, supported by ongoing orchard development and continued investment across the industry.

Speaker #1: The grape and wine sector remains subdued, with reduced harvests and lower wine production impacting demand across several product categories. Arable farming also experienced lower returns, continuing to constrain margins. Turning to our agency business...

Stephen Guerin: The grape and wine sector remains subdued, with reduced harvest and low wine production impacting demand across several product categories. Our farming also experienced lower returns, continuing to constrain margins. Turning to our Agency business.

Speaker #1: The agency business delivered operating EBITDA of 29 million , up a notable 5.5 million , or 23% , on the prior year's results Our livestock business saw elevated livestock prices across sheep , cattle and dairy markets , supporting an outstanding financial result for the livestock business Favorable international demand for red meat improved farm economics , stronger farm confidence .

Stephen Guerin: The Agency business delivered operating EBITDAR of NZD 29 million, up a notable NZD 5.5 million or 23% on the prior year's results. Our Livestock business saw elevated livestock prices across sheep, cattle, and dairy markets, supporting an outstanding financial result for the Livestock business. Favorable international demand for red meat improved farm economics, stronger farmer confidence, and robust buying interest from farmers and finishers. Our wool result was broadly in line with prior year, albeit a small reduction in volumes transacted. New Zealand's strong wool industry experienced renewed optimism, which saw crossbred wool prices reach their highest levels in decades. Mid-micron wool prices nearly doubled. Fine wools experienced significantly improved returns. Our export business, Bloch & Behrens Wool New Zealand Limited, increased export wool volumes into key international markets, particularly Europe, despite an overall decline in New Zealand wool production.

Speaker #1: Farmer confidence and robust buying interest from farmers and furnishers . Overall result was broadly in line with prior year , albeit a small reduction in volumes transacted on strong , more experienced , renewed optimism , which saw crossbred wool prices reaching their highest levels in decades Micron wool prices nearly doubled .

Stephen Guerin: New Zealand's strong wool industry experienced renewed optimism, which saw crossbred wool prices reach their highest levels in decades. Mid-micron wool prices nearly doubled. Fine wools experienced significantly improved returns. Our export business, Bloch & Behrens Wool New Zealand Limited, increased export wool volumes into key international markets, particularly Europe, despite an overall decline in New Zealand wool production.

Speaker #1: Fine wool experienced significantly improved returns. Our export business, Bloch & Wall Digital Limited, increased export volumes into key international markets, particularly Europe, despite an overall decline in new wool production.

Stephen Guerin: PGG Wrightson Wool consolidated its auction activities into a national open-cry wool auction, creating a single marketplace to maximize buyer participation in competition for growers' wool from across New Zealand. Our Real Estate FY26 results saw a significant uplift in real estate activity, resulting in improved performance. Favorable trading conditions, particularly in dairy and horticulture, predominantly kiwifruit markets, underpinned demand. Market conditions have been largely positive for farmers and growers over the past year, as already noted, and I will call out a few points of noting on the slide, including the dairy sector benefiting from Fonterra's capital return, positive farm gate returns in key markets such as dairy, red meat, and horticultural categories, notably kiwifruit. Some continuing challenges in the arable space and in viticulture, as the wine sector responded to changing consumption habits rather than the inverse. Turning to net profit after tax.

Speaker #1: Wool consolidated auction activities, International Open Pry for auction, creating a single marketplace to maximize buyer participation in competition for growers. Wool from across New Zealand.

Speaker #1: Our real estate FY 26 result saw a significant uplift in rural real estate activity , resulting in improved performance . Favorable trading conditions , particularly in dairy and horticulture , predominantly kiwifruit markets , underpinned the marked Market conditions have been largely positive for farmers .

Stephen Guerin: Market conditions have been largely positive for farmers and growers over the past year, as already noted, and I will call out a few points of noting on the slide, including the dairy sector benefiting from Fonterra's capital return, positive farm gate returns in key markets such as dairy, red meat, and horticultural categories, notably kiwifruit. Some continuing challenges in the arable space and in viticulture, as the wine sector responded to changing consumption habits rather than the inverse. Turning to net profit after tax.

Speaker #1: Growers over the past year and have already noted , and I . And I will call out a few points of note on the slide , including dairy sector benefiting from Fonterra's capital return positive farm gate returns and dairy and key markets such as dairy , red meat and horticultural categories , notably kiwifruit , some continuing challenges in the arable space and in viticulture and the wine sector .

Speaker #1: Responding to a changing consumption habits . On the inverse Profit after tax , our net profit after tax of 15.6 million was an increase of $4.9 million , or 46% , on the FY 25 year result .

Stephen Guerin: Our net profit after tax of NZD 15.6 million, which is an increase of NZD 4.9 million or 46% on the FY25 year result. This was as a result of improved operating EBITDAR result versus FY25, fair value gains on foreign exchange derivatives. This year includes the full amortization expense for the Microsoft D365 Enterprise reporting platform that went live in April 2025. The group reported strong operating cash flows of NZD 52.6 million, an increase of NZD 42.2 million versus FY25. This resulted from improved financial performance of the business, along with favorable working capital movements compared to the prior year. Operating cash flows represent the cash generated by PGW's day-to-day trading activities, and is a key measure of the group's ability to convert earnings into cash while funding working capital and supporting future growth. Cash flow from investing activities.

Speaker #1: This was as a result of improved operating EBITDA result versus FY 25 . F.y. 25 . Fair value gains on fair value gains on foreign exchange derivatives .

Speaker #1: This year includes the full amount of amortization expense for F for the Microsoft D365, D365, and Enterprise Reporting Platform that went live in April 2025.

Speaker #1: The group reported strong operating cash flows of $52.6 million , an increase of 42.2 million versus FY 25 . This resulted from improved financial performance of the business , along with favorable working capital movements compared to the prior year , operating cash flows represent a cash generated by PG day to day trading activities and is a key measure of the group's ability to convert earnings into cash .

Stephen Guerin: This resulted from improved financial performance of the business, along with favorable working capital movements compared to the prior year. Operating cash flows represent the cash generated by PGW's day-to-day trading activities, and is a key measure of the group's ability to convert earnings into cash while funding working capital and supporting future growth. Cash flow from investing activities.

Speaker #1: While funding working capital and supporting future growth This flow from investing activities , cash flows of $24.5 million , an increase of $10.3 million from FY 20 2025 , reflects a combination of inorganic growth through the Nixon acquisition and ongoing investment capability and technology support group .

Stephen Guerin: Investing cash flows of NZD 24.5 million, an increase of NZD 10.3 million from FY25, reflects a combination of inorganic growth through the Nexan acquisition and ongoing investment of capability and technology support group, the group's long-term strategy. The acquisition of Nexan represents a strategic capital allocation decision, besides to strengthen PGW's market position and expand earnings opportunities. Our working capital saw a NZD 7.3 million increase in working capital, which was largely driven by the growth of our GO-STOCK book, reflecting continued customer demand for livestock financing solutions and higher livestock prices. The investment in GO-STOCK receivables supports a core strategic initiative and contributes to strengthening customer engagement. Excluding GO-STOCK growth, underlying working capital reduced, reflecting continued focus on inventory and receivables management. Net interest-bearing debt, or otherwise referred to as NIBD.

Speaker #1: The group's long term strategy , the acquisition of Nixon , represents a strategic capital allocation system designed to strengthen Pg's market position and expand earnings opportunities Our working capital saw a $7.3 million increase in working capital , which was largely driven by the growth of our gross stock book , reflecting continued customer demand for livestock financing solutions and higher livestock prices .

Stephen Guerin: Our working capital saw a NZD 7.3 million increase in working capital, which was largely driven by the growth of our GO-STOCK book, reflecting continued customer demand for livestock financing solutions and higher livestock prices. The investment in GO-STOCK receivables supports a core strategic initiative and contributes to strengthening customer engagement. Excluding GO-STOCK growth, underlying working capital reduced, reflecting continued focus on inventory and receivables management. Net interest-bearing debt, or otherwise referred to as NIBD.

Speaker #1: The investment in stock and receivables supports a core strategic initiative and contributes to strengthening our customer engagement. Excluding stock growth, underlying working capital reduced, reflecting continued focus on inventory and receivables management. Net interest-bearing debt, or otherwise referred to as IBD.

Speaker #1: The group ended the year with an IBD of $2.4 million higher than at $88 million, reflecting the strong operating cash flows and a deliberate strategic investment undertaken during the year.

Stephen Guerin: The group ended the year with NIBD of NZD 2.4 million, higher than at NZD 88 million, reflecting the strong operating cash flows and deliberate strategic investments undertaken during the year. The group has maintained a prudent balance sheet with funding both for the Nexan acquisition and the growth of the GO-STOCK portfolio. On a like-for-like basis, excluding these strategic and growth investments, NIBD reduced, highlighting the strength of the underlying cash generation performance within the group. The small increase in debt versus the prior year demonstrates the group's continued focus, cash flow management, and capital efficiency. Investment in both Nexan and GO-STOCK is expected to support future growth and strengthen PGW's long-term competitive position. Since August 2019, share consolidation, PGW has delivered a total shareholder return of 44.6%, exceeding the NZX Gross Index of 25.5% by 19.1 percentage points over the same period.

Speaker #1: The group has maintained a prudent balance sheet, with funding by the new acquisition and the growth of the gross stock portfolio. On a like-for-like basis, excluding these strategic growth investments in IBD, reduced—highlighting the strength of the underlying cash generation performance within the group. There was a small increase in debt versus the prior year.

Stephen Guerin: The small increase in debt versus the prior year demonstrates the group's continued focus, cash flow management, and capital efficiency. Investment in both Nexan and GO-STOCK is expected to support future growth and strengthen PGW's long-term competitive position. Since August 2019, share consolidation, PGW has delivered a total shareholder return of 44.6%, exceeding the NZX Gross Index of 25.5% by 19.1 percentage points over the same period.

Speaker #1: The small increase in debt versus the prior year demonstrates the group's continued focus on cash flow management and capital efficiency. Investment in both the and Ghost are expected to support future growth and strengthen the group's long-term competitive position. Since August 2029, share consolidation has resulted in a total shareholder return of 44.6%, exceeding the Indian Gross Index of 25.5% by 19.1 percentage points over the same period. Came to outlook yields.

Stephen Guerin: Coming to outlook. New Zealand's agriculture sector enters FY27 from a position of relative strength, supported by healthy international demand and favorable conditions across key market sectors. Strong returns in red meat, dairy, and horticulture continue to provide positive momentum for rural New Zealand, supporting farm and orchard profitability and investment. While the outlook is positive, we have seen a pleasing start to FY27. Some areas of challenge remain. Geopolitical tensions, supply chain disruptions, elevated input costs, and potential impact of the dry El Niño conditions continue to present risks. Dry conditions in a number of key farming and horticultural regions could impact production, cash flows, and customer confidence. In addition to this, we have election year dynamics, which may contribute a degree of caution. Viticultural and animal farming is also expected to remain challenging in the near term.

Speaker #1: Agriculture sector . Enters Fi 17 . FY 27 from a position of relative strength supported by healthy international demand and favorable conditions across key market sectors .

Speaker #1: Strong returns in red meat , dairy and horticulture continue to provide positive momentum for rural New Zealand . Supporting farm and orchard profitability and investment While the outlook is positive , we've seen and we've seen a pleasing start to FY 27 .

Speaker #1: Some areas of challenge remain: geopolitical tensions, supply chain disruptions, elevated input costs, and the potential impact of dry El Niño conditions continue to present risks. Dry conditions in a number of key farming and horticultural regions could impact production.

Stephen Guerin: Geopolitical tensions, supply chain disruptions, elevated input costs, and potential impact of the dry El Niño conditions continue to present risks. Dry conditions in a number of key farming and horticultural regions could impact production, cash flows, and customer confidence. In addition to this, we have election year dynamics, which may contribute a degree of caution. Viticultural and animal farming is also expected to remain challenging in the near term.

Speaker #1: Cash flows and customer confidence. In addition to this, we have the next year dynamics, which may contribute to a degree of caution. Viticulture and arable farming is also expected to remain challenging in the near term.

Speaker #1: New Zealand recently signed in Zealand , India Free Trade Agreement , which provides additional optimism for future growth through improved market access Although conditions across the agricultural sector remain favourable , the critical spring training period remains ahead of us and it's too , too soon to provide guidance on the expected FY 22 performance .

Stephen Guerin: New Zealand recently signed the India-New Zealand Free Trade Agreement, which provides additional optimism for future growth through improved market access. Although conditions across the agricultural sector remain favorable, the critical spring trading period remains ahead of us. It is too soon to provide guidance on the expected FY27 performance. PGW expects to be in a better position to provide FY27 guidance at our 30 October annual shareholder meeting. In closing, I would like to acknowledge the dedication of our people across the country and thank our customers and shareholders for their continued support and trust. This concludes our 2026 financial presentation. I would like to open the webcast for questions, firstly, on those on telephone. Thank you very much for your participation. Ashley, I will now hand back the slide to you and just remind you, for those on the webcast, the Slido application is before we take questions.

Speaker #1: Penguin expects to be in a better position to provide FY 27 guidance at our 30 in October , annual shareholder meeting . In closing , I'd like to acknowledge the dedication of our people across the country and thank our customers and shareholders for their continued support .

Stephen Guerin: In closing, I would like to acknowledge the dedication of our people across the country and thank our customers and shareholders for their continued support and trust. This concludes our 2026 financial presentation. I would like to open the webcast for questions, firstly, on those on telephone. Thank you very much for your participation. Ashley, I will now hand back the slide to you and just remind you, for those on the webcast, the Slido application is before we take questions. Thank you very much.

Speaker #1: Trust. This concludes our 2026 financial presentation. I'd like to open the webcast for questions, firstly for those on the telephone.

Speaker #1: And thank you very much for your participation as I'll now hand back the slide to you. I'll just remind you, for those on the webcast, the Slido application is available before we take questions.

Speaker #1: Thank you very much

Stephen Guerin: Thank you very much.

Speaker #2: Thank you. If you wish to ask a question on the phone line, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Operator 2: Thank you. If you wish to ask a question on the phone line, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. We will now pause a short moment for any questions to register. Once again, if you wish to ask a question, please press star one on your telephone. Thank you. There are no phone questions at this time. I will now hand back to Stephen Guerin.

Operator: Thank you. If you wish to ask a question on the phone line, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. We will now pause a short moment for any questions to register. Once again, if you wish to ask a question, please press star one on your telephone. Thank you. There are no phone questions at this time. I will now hand back to Stephen Guerin.

Speaker #2: If you're on a speakerphone, please pick up the handset to ask your question. We'll now pause a short moment for any questions to register. Once again, if you wish to ask a question, please press star one on your telephone. Thank you.

Speaker #2: There are no phone questions at this time. I'll now hand back to Stephen Gearin.

Julian Daly: Ashley, we have one question through on Slido here, so I will just read that out. The outlook commentary remains positive, but what is the biggest risk to achieving another strong result in FY27?

Speaker #3: We have one question through on Slido here . So I'll just read that out . The outlook commentary remains positive , but what is the biggest risk to achieving another strong result in FY 27 ?

Speaker #1: Thanks to the . For those online . I posted that question and that was Julian's voice in the background as acting as moderator .

Stephen Guerin: Thanks for those online who posted that question. That was Julian's voice in the background there, who is acting as moderator today. The risks, in terms of the FY27 result, fall into two areas. The commodity cycle price position that impacts the returns for our growers and underpins their confidence levels, and then we have three factors. One, at the moment, you would say that the commodity price cycle looks positive, whereas there is certainly uncertainty and increased commentary about the impact of El Niño out there. Time will tell as to how that actually plays out, because it is a forecast.

Speaker #1: Today The risks are in terms of the FY 27 result fall into two areas . The commodity cycle price position that . That impacts the returns for our growers and underpins their confidence levels .

Speaker #1: And then other factors right at the moment , you would say that the commodity price cycle looks positive , whereas there are certainly uncertainty and increased commentary about the impact of El Nino out there , time will tell as to how that actually plays out because it is a forecast .

Speaker #3: Another question online regarding the Nixon acquisition. The question is: how has Nixon performed relative to the acquisition case for the business, and when would we be likely to see the full benefits of this acquisition being realised?

Julian Daly: Another question online regarding the Nexan acquisition. The question is: How has Nexan performed relative to the acquisition case for the business, and when would we likely to see the full benefits of this acquisition being realized?

Stephen Guerin: We are very pleased with having the Nexan business as part of our family. We've had a relationship that goes back over 10 years with the business, and we saw it as a really strategic opportunity to invest in the business to grow both the Nexan business and PGG as well. The business has settled in well. We have good data around how the business performed before the acquisition, and it's traded ahead of expectations in terms of that. We have a number of initiatives underway, in terms of future product portfolio growth, and I have actually traveled with the Nexan team into China just in the last few months to visit some of their suppliers. I'm confident that that's going to be delivered on, starting from this year. And we welcome to see that provide a return to our shareholders and to our growers around future profit opportunities.

Speaker #1: We are very pleased with having the Nixon business as part of our family. We've had a relationship that goes back over ten years with the business, and we saw it as a really strategic opportunity to invest in the business, to grow both the Nixon business and GW as well.

Speaker #1: The business has settled in well . We had good data around what how the business was performing before the acquisition , and it's trading ahead of expectations in terms of that , we have a number of initiatives underway in terms of future product portfolio growth , and they have actually travelled with the Nixon team into China just in the last few months to visit some of their suppliers .

Stephen Guerin: We have a number of initiatives underway, in terms of future product portfolio growth, and I have actually traveled with the Nexan team into China just in the last few months to visit some of their suppliers. I'm confident that that's going to be delivered on, starting from this year. And we welcome to see that provide a return to our shareholders and to our growers around future profit opportunities.

Speaker #1: I'm confident that that's going to be delivered on . And starting from from this year . And we we welcome to see that provide a return to to our shareholders and to our growers around future product opportunities , animal health is one of those areas where we haven't seen a lot of innovation in the marketplace .

Stephen Guerin: Animal health is one of those areas where we haven't seen a lot of innovation in the marketplace. For us to make that strategic investment underpins our performance, and we're really confident that it will perform ahead of expectations because that's what we've seen in the first 11 months of the business within our organization.

Speaker #1: So for us to make that strategic investment underpins our performance, and we're really confident that we'll reach the former head of expectations because of what we've seen in the first 11 months of the business within our organisation.

Speaker #3: I have a follow-up question on Nixon. Have stock or other stocking stations or vet companies like Farmland stopped selling Nixon and vitamin products since the acquisition?

Julian Daly: The follow-up question on Nexan. Have other stock and station or VETMED companies like Farmlands stopped selling Nexan and VETMED products since the acquisition?

Speaker #1: No , they continue to support the product brands . So that's just very pleasing to see . We were very transparent . We have a team that's engaged with those customers as we see them .

Stephen Guerin: No, they continue to support the product brands. That's just very pleasing to see. We were very transparent. We have a team that's engaged with those customers. As we said, we do treat them as customers, and they continue to support the brand.

Speaker #1: We do treat them as customers, and they have—they've continued to support the brand.

Speaker #3: The question is: I disrupted the work of our technical advisors somewhat?

Julian Daly: Another question, has AI disrupted the work of our technical advisors somewhat?

Speaker #1: It's a really good question . Right at the moment , the answer , the short answer is no . There are certainly a number of AI tools out in the marketplace .

Stephen Guerin: It's a really good question. Right at the moment, the short answer is no. There are certainly a number of AI tools out in the marketplace. Our customers are experimenting with those. We ourselves are experimenting with those. We have the research facility I spoke about earlier on in the Hawke's Bay. We are in the process of setting up a digital twin for that research facility, so we are going to see how we can model certain scenarios in that environment. It is an area of investment for us. We have, both in terms of the technology and staff that we have got on our teams to support the innovation that we are seeing. We continue to monitor what is going on in the world as well. Our teams travel internationally to see what is going on.

Speaker #1: Our customers are experimenting with those . We ourselves are experimenting with . Those we have . We have the research facility . I spoke about earlier on in the Hawke's Bay .

Speaker #1: We're in the process of setting up a digital twin for that research facility, so we're going to see how we can model certain scenarios in that environment.

Speaker #1: And it's an area of investment for us. We have, both in terms of the technology and staff, that are... that are...

Stephen Guerin: We have, both in terms of the technology and staff that we have got on our teams to support the innovation that we are seeing. We continue to monitor what is going on in the world as well. Our teams travel internationally to see what is going on. Our observation at this point in time is New Zealand is well-placed around innovation, and we have pitched out we are well-placed. The challenge for it is not going too bleeding edge on this stuff as well.

Speaker #1: We've got teams in place to support the innovation that we're seeing, and we continue to monitor what's going on in the world as well.

Speaker #1: Our teams travel internationally to see what's going on, and our observation at this point in time is New Zealand is well placed around innovation, and we are well placed.

Stephen Guerin: Our observation at this point in time is New Zealand is well-placed around innovation, and we have pitched out we are well-placed. The challenge for it is not going too bleeding edge on this stuff as well.

Speaker #1: The challenge is not going to be bleeding edge on this stuff as well.

Speaker #3: The other question in relation to the Nixon acquisition: can we disclose the Nixon revenue, EBITDA, and EBIT?

Julian Daly: We have a question in relation to the Nexan acquisition. Can we disclose the Nexan revenue, EBITDA, and EBIT?

Speaker #1: I'm just going to turn to you because we do have some information in our financial reports on that. Yeah, we do.

Stephen Guerin: Peter, I'm just going to turn to you because we have got some information in our financial reports on that.

Peter Scott: Yeah, we do. Peter's got here, actually. We do actually disclose in our financial accounts that Nexan had revenues of NZD 8.1 million generated a net profit after tax of NZD 1 million. We don't really go into EBITDA because that's commercially sensitive. As Stephen mentioned before, the 11 months have been very positive from an acquisition point of view, and we're very pleased with the performance of Nexan.

Speaker #3: It's stop here actually . We do actually disclose in our financial in our financial accounts that Nixon had revenues of $8.1 million , generated a net profit after tax of $1 million .

Speaker #3: We don't really go into EBITDA because that's that's commercially sensitive . But as Stephen mentioned before , the 11 months have been very positive from a from an acquisition point of view .

Speaker #3: And we're very, very pleased with the performance of Nixon.

Speaker #1: But that was fully disclosed in the financial structures. Yes.

Stephen Guerin: That note fully disclosed in the financial statements.

Julian Daly: Correct, yes. Another question, operating cash flow increased significantly during FY26. How much of this improvement is sustainable versus being driven by timing impacts of working capital movements?

Peter Scott: Correct, yes.

Speaker #3: Decrease in operating cash flow increased significantly during FY26. How much of this improvement is sustainable versus being driven by timing impacts of working capital movements?

Julian Daly: Another question, operating cash flow increased significantly during FY26. How much of this improvement is sustainable versus being driven by timing impacts of working capital movements?

Speaker #1: It's sustainable to the extent that we were reliant on the performance . Strong performance and commercial returns that our customers are receiving . We , as a business are equally focused around our working capital , and we've got a number of initiatives underway in terms of our planning , of our infantry as we go further up the supply chain .

Stephen Guerin: It's sustainable to the extent that we're reliant on the strong performance and commercial returns that our customers are receiving. We, as a business, are equally focused around our working capital, and we've got a number of initiatives underway in terms of our planning of our inventory. As we go further up the supply chain as a business, we need to take greater control and deliver on better planning for our working capital. As I said, we've got a number of initiatives underway in that space. I'm really pleased to see that the Retail team in particular, which we have most of our working capital from an inventory perspective is concentrated, have that as a major project within their business. The cash flow cycle, we are monitoring what's going on within our own business.

Speaker #1: As a business , we need to take greater control and deliver on better planning for our working capital . And as I said , we've got a number of initiatives underway in that space , and I'm really pleased to see that the retail team in particular , which most of our working capital from our inventory perspective is concentrated , have that as a as a major project within their business , the cash flow cycle , you know , we , we , we are monitoring what's going on within our own business .

Stephen Guerin: I'm really pleased to see that the Retail team in particular, which we have most of our working capital from an inventory perspective is concentrated, have that as a major project within their business. The cash flow cycle, we are monitoring what's going on within our own business.

Speaker #1: We , we scan across the sector as well and compare information with our bank syndicates . And in the near term , we are confident around the cash flows of our position of our business .

Stephen Guerin: We scan across the sector as well, and compare information with our bank syndicates. In the near term, we are confident around the cash flows of our business. You'll see in our notes that we have renewed our banking facilities, those are the financial statements, and we've modeled out our cash flows as part of that process out over the next few years. That gives us some confidence based on the underlying results we're predicting from the business.

Speaker #1: You'll see in our notes that we have renewed our banking facilities, our notes, the financial statements, and we've modeled out our cash flows.

Speaker #1: Part of that process will play out over the next few years. And that gives us some confidence based on the underlying results we're predicting within the business question.

Julian Daly: Question now in relation to net debt. Do we intend to reduce net debt over FY27? Well, as Stephen just mentioned, cash flows were strong in FY26 at operating cash flow being NZD 52 million. It depends on the year ahead, from an EBITDA performance, of course, and constraining our net working capital. However, if there are growth opportunities, such as investment in our GO-STOCK product, then that might lead to an increase in net debt. But we've seen this year that GO has gone up NZD 7 million, and that we would want that to continue to grow actually, as one of our strategies. If you look in the notes of the financial statements too, you'll see that we've expanded our facilities with banks to an upper limit of NZD 265 million from NZD 185 million. A lot of that is to account for continued growth in the GO product.

Julian Daly: Question now in relation to net debt. Do we intend to reduce net debt over FY27?

Speaker #3: Now in relation to net debt , do we intend to reduce net debt over FY 27 ? Well , as David just mentioned , you know , cash flows were strong in FY 26 at operating cash flow , being 52 million .

Peter Scott: Well, as Stephen just mentioned, cash flows were strong in FY26 at operating cash flow being NZD 52 million. It depends on the year ahead, from an EBITDA performance, of course, and constraining our net working capital.

Speaker #3: It depends on on the year ahead from a from a performance , from an EBITDA performance , of course , and whether we and constrain our net working capital .

Speaker #3: However , if there are growth opportunities , such as investment in in go stock product , then we would then that might lead to an increase in net debt .

Peter Scott: However, if there are growth opportunities, such as investment in our GO-STOCK product, then that might lead to an increase in net debt. But we've seen this year that GO has gone up NZD 7 million, and that we would want that to continue to grow actually, as one of our strategies. If you look in the notes of the financial statements too, you'll see that we've expanded our facilities with banks to an upper limit of NZD 265 million from NZD 185 million. A lot of that is to account for continued growth in the GO product. Depending on what happens over the year, we could see an increase from a GO perspective.

Speaker #3: But we've we've seen this year that that go has gone up $7 million . And , and that we would want that to , to continue to grow .

Speaker #3: Actually , it's one of our strategies . If you look in the notes of the financial statements too , you'll see that we've expanded our our facilities with banks to an upper limit of $265 million from $185 million .

Speaker #3: And a lot of that is to account for continued growth in the Go product. So depending on what happens over the year, we could see an increase from a Go perspective.

Julian Daly: Depending on what happens over the year, we could see an increase from a GO perspective.

Speaker #1: And thank you , Peter . And I acknowledge the support of our directors around the continued investment in the business . The likes of their acquisition , the ability to grow , the go product , and we talked at last year's result , that part of our strategic initiatives was looking at acquisitions that will grow the business .

Stephen Guerin: Thank you, Peter, and I acknowledge the support of our directors around the continued investment of the business, the likes of the Nexan acquisition, the ability to grow the GO product. We talked at last year's result that part of our strategic initiatives was looking at acquisitions that will grow the business. Some of those are through the investment of products and services. Some of those are the likes of new initiatives such as the Nexan acquisition, and then the growth of the GO product. So those things are already within our business.

Speaker #1: Some of those are through the investment products and services. Some of those are the likes of new initiatives, such as the new acquisition, and then the growth of the Go product.

Speaker #1: So, those things are already within our business.

Speaker #3: Two related questions to that topic. What is the target size of the Go stock book, and how do we balance growth against credit risk and funding requirements?

Julian Daly: Two related questions to that topic. What is the target size of the GO-STOCK book, and how do we balance growth against credit risk in funding requirements?

Speaker #1: We haven't given an 'A' anywhere in our market commentary because we consider that market sensitive around our appetite for growing the grow product.

Stephen Guerin: We haven't given anywhere in our market commentary, because we consider that market sensitive around our appetite for growing the GO product, but it is there. We haven't given a specific target around that. In terms of the market credit risk, we have a team that operate across the country. We have a senior lead in that who's well experienced within our business. We measure both concentration risk from species type, our areas across the country, and we're monitoring the price of the underlying markets in terms of the sector. We monitor those on a monthly basis. It's a part of our management reporting systems, and throughout to the board as well. The other point about this is that we have long and deep relationships with our customers in this space. We're doing their other trading activity.

Speaker #1: But it is there . We have a specific target around that . The terms of the market , you know , credit risk .

Speaker #1: We have a team that operates across the country, and we have a senior lead in that team who's well experienced within our business.

Speaker #1: We measure both concentration risk from species type, our area areas across the country. And we're monitoring the price of the underlying markets in terms of the sector.

Speaker #1: And we monitor those on a monthly basis . And , you know , we , we , we , a part of our management reporting systems and through up to the board as well .

Stephen Guerin: We monitor those on a monthly basis. It's a part of our management reporting systems, and throughout to the board as well. The other point about this is that we have long and deep relationships with our customers in this space. We're doing their other trading activity. It's not as if we solely have a relationship around the GO product. We have their other farm inputs and other activities. So, we are seeing what's going on in the whole farm system rather than just the lending facility or the GO product.

Speaker #1: So, the other point about this is that we have long and deep relationships with our customers in this space, and we're doing their other training activities.

Speaker #1: So it's not as if we're solving a relationship around the product . We have the other farm inputs and other activities . So we are we are seeing what's going on in the whole of the farm system rather than just the lending facility or go product .

Stephen Guerin: It's not as if we solely have a relationship around the GO product. We have their other farm inputs and other activities. So, we are seeing what's going on in the whole farm system rather than just the lending facility or the GO product.

Julian Daly: Just add to that, Stephen, that, although we don't have a target, you will see in the notes of the account on note nine in the accounts that we have facilities up to NZD 115 million for GO. And that's available to fund 90% of the GO-STOCK. So that's one thing we do disclose in the accounts. Further question in relation to Nexan. Does the successful integration of Nexan increase the likelihood of further acquisitions?

Peter Scott: Just add to that, Stephen, that, although we don't have a target, you will see in the notes of the account on note nine in the accounts that we have facilities up to NZD 115 million for GO. And that's available to fund 90% of the GO-STOCK. So that's one thing we do disclose in the accounts.

Speaker #3: To say to that , Stephen , that although we don't have a target , you will see in the the account on note nine in the accounts that we have facilities up to $115 million for for go , and that's available to fund 90% of the Go stock .

Speaker #3: So that's , that's one thing we do . We do disclose the accounts . Further question in relation to Nixon , does the successful integration of Nixon increase the likelihood of further acquisitions

Julian Daly: Further question in relation to Nexan. Does the successful integration of Nexan increase the likelihood of further acquisitions?

Speaker #1: The short answer to that is yes, it does. If you can bring a business into the market, into the GW group.

Stephen Guerin: The short answer to that is, yes, it does. If you can bring a business into the PGW group, so this was a privately-owned business, a small business, tightly held, and coming into a business the same shape and size of PGW, is different. That's the reality of things. To be able to do that successfully, demonstrates to both management, to those staff that have come in as part of the acquisition, and to our board and to our shareholders that we can actually manage acquisitions successfully as far as part of the business is concerned. So, I'm sure that, based on the feedback we've discussed with our board, if we have a good business case, a good strategic arrangement, the risks align with our broader strategy as a business and the key market segments, that they would support us.

Speaker #1: So this was a privately home owned business , a small business , tightly held . And coming into business , the shape and size of PG w is different .

Speaker #1: That's the reality of things. To be able to do that successfully demonstrates to both management, to those staff that have come in as part of the acquisition, and to our board and to our shareholders, that we can actually manage acquisitions successfully as far as the business is concerned.

Speaker #1: So I'm sure that if the base of the feedback were discussed with have our board , if we have a good business case for a good strategic agreement , align with our broader strategy as a business , and the key market segments that they would support us .

Stephen Guerin: So, I'm sure that, based on the feedback we've discussed with our board, if we have a good business case, a good strategic arrangement, the risks align with our broader strategy as a business and the key market segments, that they would support us. Obviously, that's subject to the working capital constraints of the business as well.

Speaker #1: Obviously , you know , the subject , the working capital constraints of the business as well . So

Stephen Guerin: Obviously, that's subject to the working capital constraints of the business as well.

Speaker #3: Slightly longer question here. Now, retail and water revenue was up approximately $71 million, and EBITDA was up just $2.3 million. What is PGG doing to demonstrate operating leverage and very little increased revenue in making EBITDA? Is the increase in revenue mostly from price inflation or actual revenue growth?

Julian Daly: Slightly longer question here now. Retail & Water revenue was up approximately NZD 71 million, and EBITDA was up just NZD 2.3 million. What is PGW doing to demonstrate operating leverage and very little increased revenue in making EBITDA? Is the increase in revenue mostly from price inflation or actual revenue growth?

Speaker #1: Thanks for the question . And as you acknowledged , Julien's along the question . So the revenue was up as as as noted , those those facts as outlined are correct .

Stephen Guerin: Thanks for the question. As you acknowledged, Julian, it's a longer question. The revenue was up as noted. Those facts as outlined are correct. As I talked about in my commentary, we did see some variation in terms of the underlying market sectors from a horticultural perspective and the Fruitfed Supplies business. The grape market is close on 40,000 hectares of grapes, and that particular sector has seen a downturn in confidence in the sector. We've seen some areas that actually been pulled out from a grapes perspective. I think, globally, wine consumption has fallen 4% annually year-on-year. That's certainly impacting our business. The horticulture, sorry, from an apple market perspective, we've seen some variability in that area. Some customers perform strongly, some not so strongly. That's impacted the business. Conversely, the Zespri performance has supported our kiwifruit growers.

Speaker #1: We did see , as I talked about in my commentary , we did see some variation in terms of the underlying market sectors from a horticultural perspective , from the fruit food supplies business , the great market is close on 40,000 hectares of grapes and that particular sector has seen a downturn in confidence in the sector .

Speaker #1: We've seen some areas actually being pulled out of, from great perspective. I think wine globally, wine consumption has fallen 4% annually, year on year.

Stephen Guerin: I think, globally, wine consumption has fallen 4% annually year-on-year. That's certainly impacting our business. The horticulture, sorry, from an apple market perspective, we've seen some variability in that area. Some customers perform strongly, some not so strongly. That's impacted the business. Conversely, the Zespri performance has supported our kiwifruit growers. If we look at our underlying results from a customer engagement survey perspective, the business continues to perform strongly and grow its market share.

Speaker #1: And we have that's certainly impacting our business . There's been some horticultural app from Apple market perspective . We've seen some variability in that area , some some customers have performed strongly , some not so strongly .

Speaker #1: And so that's impacted the business . So , you know what ? Conversely , the the Zespri performance support of our kiwifruit growers , if we look at our underlying results from a , a customer engagement survey perspective , the business continues to perform strongly and growers market share

Stephen Guerin: If we look at our underlying results from a customer engagement survey perspective, the business continues to perform strongly and grow its market share.

Speaker #3: Yeah , just adding to that point , that Stevens , the Stevens mentioned , whilst revenue has , you know , grown , you know , really pleasingly , you would see from our notes to the accounts that we have taken an impairment charge over one large receivable , and that's influenced our , our EBITDA for the retail and water segment .

Peter Scott: Yeah, just adding to that point that Stephen's mentioned. Whilst revenue has grown really presently, you would see from our notes in the accounts that we have taken an impairment charge over one large receivable, and that's influenced our EBITDA for the Retail & Water segment. So that's the reason.

Speaker #3: So that's , that's the reason , that's the main reason actually that whilst revenue has grown , EBITDA has not grown in the same percentage wise We have a question here on Blue Egg white label product .

Stephen Guerin: That's the main reason, actually, that whilst revenue's grown, EBITDA has not grown in the same percentage wise.

Julian Daly: We have a question here on Blue Ag white label product. Blue Ag has completed its first full trading season. What are the early indicators that we are seeing around customer adoption, margins, and market share opportunities?

Speaker #3: The Blue Egg has completed its first full trading season. What are the early indicators that we're seeing around customer adoption, margins, and market share opportunities?

Speaker #1: The there has been strong adoption from our clients . This was a key strategic initiative . We've seen the rise of the generic chemistry within the marketplace and PJs has positioned itself well .

Stephen Guerin: There has been strong adoption from our clients. This was a key strategic initiative. We have seen the rise of the generic chemistry within the marketplace, and PGW has positioned itself well. We have had relationships with a number of suppliers in this space for a period of time, and then we have therefore expanded the range within our network. In terms of that process, we made sure that our staff were well-briefed, including a number of staff traveling to our suppliers to understand their manufacturing process, assurance around quality, et cetera. That has flowed through to the market adoption by our clients. The fact that PGW is prepared to put its brand name on the particular products, back them, and has the support networks across the country in terms of our technical team to support those products being launched into the marketplace.

Speaker #1: We've been had relationships with a a number of suppliers in this space for a period of time . And then we've sort of expanded , therefore expanded the range within our network in terms of that process .

Speaker #1: We made sure that our staff were well briefed and some staff , a number of staff travelling to our suppliers to understand their manufacturing process , insurance around quality , etcetera .

Speaker #1: And that's flowed through to the market adoption by our clients . The fact that PJs is prepared to put its brand name on the particular products back , it , back them , and has the support networks across the country .

Stephen Guerin: That has flowed through to the market adoption by our clients. The fact that PGW is prepared to put its brand name on the particular products, back them, and has the support networks across the country in terms of our technical team to support those products being launched into the marketplace.

Speaker #1: In terms of our technical team to support those products being launched, the marketplace, as you go up the supply chain, the reality is that you are able to integrate margins, and that's what we've been able to achieve.

Stephen Guerin: As you go up the supply chain, the reality is that you are able to integrate margins, and that is what we have been able to achieve. We have got further expansion plans for this season that is ahead of us, both in terms of sales volumes and in terms of the number of products that we have within the marketplace.

Speaker #1: We've got further expansion plans for this season that's ahead of us, both in terms of sales volumes and in terms of the number of products that we have on our marketplace.

Speaker #3: Further question here: Which business units contributed most to FY26 earnings growth, and where do we see the biggest opportunities for further improvement?

Julian Daly: We have a question here. Which business units contributed most to FY26 earnings growth, and where do we see the biggest opportunities for further improvement?

Speaker #3: It's Peter here. So the biggest, I guess, was from the livestock business. The livestock business is, actually, you would have seen, red meat prices were very strong throughout the whole year.

Peter Scott: It's Peter here. The biggest, I guess, was from the livestock business. The livestock business, you'll have seen red meat prices were very strong throughout the whole year and continued to strengthen over the year. That's been one of the major contributors. The real estate business was also very positive during the year. With commodity prices being so strong, that's given confidence for the rural real estate side of the business. Rural Supplies, also, the Rural Supplies business was a strong contributor, too, and also the inclusion of Nexan helped us a lot, too. Rural Supplies, our agri-trade business, and our agency businesses of livestock and real estate contributed mostly. The Rural Supplies business has a concentration of customer base around the dairy and the red meat customers. Those underlying commodity price returns drive the performance of that particular business unit.

Speaker #3: And continued to to strengthen over the year . So that's been that's been one of the major contributors . The real estate business was also very positive during the year with commodity prices being so strong .

Speaker #3: That's given confidence for the for the rural real estate side of the business . Rural suppliers . Also , the rural suppliers , business was was strong contributor to and , and also the , the inclusion of Nixon helped us a lot too .

Speaker #3: So, rural supplies, agri trade, business, and our agency business of livestock and real estate contributed mostly.

Peter Scott: Rural Supplies, our agri-trade business, and our agency businesses of livestock and real estate contributed mostly. The Rural Supplies business has a concentration of customer base around the dairy and the red meat customers. Those underlying commodity price returns drive the performance of that particular business unit. But having said that, we've also seen some market share growth in that particular business as well.

Speaker #1: They're all suppliers. The business has a concentration of customer base around the dairy and the red meat customers. So, those underlying commodity price returns drive the performance of that particular business unit.

Speaker #1: But we all accept that. We've also seen some market share growth in those particular businesses as well. So,

Stephen Guerin: But having said that, we've also seen some market share growth in that particular business as well.

Speaker #3: That's all the questions through on Slido.

Julian Daly: That's all the questions through on Slido.

Speaker #1: Thank you . Ashley . I'm turning the call back to you . Is there any last questions that we may have had on the phone on the phone line .

Stephen Guerin: Thank you, Ashley. I'm turning the call back to you. Is there any last questions we may have had on the phone line?

Speaker #2: Thank you. There are no questions on the phone line at this time. I'll hand back.

Operator 2: Thank you. There are no questions on the phone line at this time. I will hand back.

Operator: Thank you. There are no questions on the phone line at this time. I will hand back.

Speaker #1: Thank you, and I wish you all a good day ahead. Thank you for your time and for listening to this presentation today.

Stephen Guerin: Thank you, and I wish you all a good day ahead, and thank you for your time and listening to this presentation today. And we wish you, all our customers, a good spring, because that is key to the success of the PGW business. Thank you very much.

Speaker #1: And we wish you all our customers a , a , good spring because that is key to the success of the business . So thank you very much .

Operator 2: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Operator: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Browse all earnings call transcripts

Full Year 2026 PGG Wrightson Ltd Earnings Call

Request TrialDemo

PGG Wrightson Ltd

Earnings