PGW revises earnings guidance as farmer spending drops
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.
The company says it now expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) to lift by $3 million to $60m, just shy of the record $67m achieved in 2022. This guidance remains subject to audit. PGW will release its annual results on August 15.
In February this year, PGW announced a half-year EBITDA of $47.8m, just shy of the record $48.2m achieved last year. The solid half-year result included new revenue and earnings highs for its retail and water group which generates most of its earnings in the first half of the financial year. However, this was partially offset by challenges in the real estate business.
PGW acting chair, U Kean Seng, says following the strong half-year result, the company has continued to see pleasing operational performance over the final quarter of the financial year.
"Based upon this performance, the board has determined to lift its operating EBITDA guidance for the full year to June 30, 2023 - from $57 million to around $60 million."
Seng, who took over as acting chair folowing a board upheaval around former chair Lee Joo Hai, says it's pleasing to be able to report a strong finish to the financial year and lift guidance expectations.
Hai, who is fighting charges filed under Singapore securities legislation, is leaving the rural service trader's board.
He stepped down as chair in early July and won't be seeking re-election at PGW's annual shareholders meeting later this year.
A PGW filing with the New Zealand Stock Exchange recently said Hai noted that he was resigneing "in order to eliminate the ongoing distraction caused due to media and market attention regarding the securities regulation matters that he is defending in Singapore".
