The company yesterday announced its full-year financial results for the year ended June 30, posting operating earnings before interest, tax, depreciation and amortisation (excluding the impact of a new accounting lease standard) of $23.4million, down from last year’s $24.4million. Net profit after tax was $7.8million, down from last year’s record $131.8million which was boosted by the sale of its seed and grain business.
Second-half trading results were affected by Covid-19 and consequent operational disruption which included about 50% of its business — including wool, saleyards and real estate — shut down during lockdown, and it posted a second-half $4.9million net loss.
In view of the disruption, Mr Guerin was pleased with the financial performance, saying it was in a very good place to reset for the year ahead.
The livestock business experienced a strong first six months underpinned by buoyant livestock trading volumes and values. In the second half, widespread drought conditions resulted in high demand and a shortage of processing capacity.
The pandemic affected the supply chain in international markets and further restrictions on capacity were implemented.
The benefits of bidr — the company’s real-time online trading programme — came into stark focus during the lockdown where necessity highlighted the advantages of that channel and innovation.
PGW Wool came through a difficult year with depressed crossbred wool prices.
The rural real estate market continued to be challenged with lower volumes in all sectors throughout the financial year, while the lifestyle and residential markets in the provinces remained positive.
PGW’s rural supplies business and Fruitfed Supplies business performed well. The horticultural sector had experienced good returns and yields and maintained a positive outlook, Mr Guerin said.
PGW chairman Rodger Finlay said the board had decided not to pay a final dividend, although it intended to resume regular dividends when the market stabilised. The company received $4.1million through the Government wage subsidy scheme.
