PGW returns take a hit

The company issued guidance, ahead of its annual meeting, forecasting operating earnings before interest, tax, depreciation and amortisation (Ebitda) of around $52m – down from the $61.2m it reported in the 12 months to June 30, 2023.

PGW noted that trading in the first quarter was “back” on last year, influenced by the macroeconomic environment and a subdued real estate market. Its retail and water business made up 80% of the company’s revenue in the last financial year, with its agency group – which includes real estate – making up the balance.

The rural sector is under pressure – particularly red meat and dairy – with prices at low levels and on-farm inflation sitting at near 40-year highs. Farmer confidence has hit a record low, according to Rabobank’s most recent rural confidence survey.

PGW acting chair U Kean Seng says farmers have tightened their belts and there was a “significant degree” of volatility in the global economy and international markets.

The company says it was still early in the financial year and they would be in a better position to assess the full-year forecast after the spring trading period.