PGG Wrightson Limited

FY26 operating revenue was $1.1 billion, up $99 million or 10% year on year. Operating EBITDA was $64.3 million, up $8.2 million or 15%, while net profit after tax was $15.6 million, up $4.9 million or 46%. EPS was $0.26 per share, and cash flow from operating activities was $52.6 million, up $4.2 million, with the CFO also describing it as up $42.2 million versus FY25. Management declared a final dividend of $0.0055 per share, bringing the full-year dividend to $0.10 per share. For FY27, no numeric guidance was given; management said it is too early to provide FY27 performance guidance and expects to update at the 30 October Annual Shareholder Meeting.

Stephen Guerin framed FY26 as a year of progress across financial performance, safety, and customer experience, and said the company is leveraging 175 years of heritage while investing in innovation. He highlighted strategic initiatives including the Nexan acquisition, the Blue ag private-label rollout, new R&D capability in Hawke’s Bay, stronger livestock supply chain partnerships, and the growth of digital livestock participation. His tone was constructive but cautious: he said FY27 starts from relative strength, but dry conditions, geopolitical tensions, supply chain disruptions, and elevated input costs remain risks, and he repeatedly emphasized that spring trading will be critical before giving formal guidance.

Peter Scott emphasized that FY26 cash generation was strong, with operating cash flow of $52.6 million and investing cash flows of $24.5 million, reflecting the Nexan acquisition and continued investment in technology and capability. He said net debt was $2.4 million higher year on year, but on a like-for-like basis excluding strategic growth investments, net debt reduced; he also noted bank facilities were expanded to an upper limit of $265 million from $185 million, largely to support GO-STOCK growth. On Nexan, he disclosed revenue of $8.1 million and net profit after tax of $1 million, while saying EBITDA details were commercially sensitive.

Analysts asked about the biggest risk to FY27, and management pointed to commodity price cycles and uncertainty around El Niño/dry conditions as the main concern. On Nexan, management said the business has settled in well, is trading ahead of expectations, and is likely to deliver full benefits starting this year; they also said key customers have continued to support the brands. Questions on operating cash flow sustainability and net debt brought a response that cash generation is supported by underlying performance but will depend on EBITDA and working capital discipline, while growth investments like GO-STOCK could increase debt. In a question on Retail & Water, management said an impairment charge on one large receivable held back EBITDA growth relative to revenue.