Reported after-tax net profit fell from $19.7 million to $16.1 million and operating earnings before interest, tax and depreciation was $30.9 million, down $2.9 million from the record result in the corresponding period last year. Revenue dropped 4.8% to $623 million.
Chief executive Mark Dewdney described it as a ‘‘very strong'' result given the challenging trading conditions in many agricultural markets, with more conservative spending from the company's customers.
Retail increased operating ebitda by $500,000 despite reduced revenue. Horticulture and the performance of its Fruitfed business was particularly strong in the period, he said.
A lack of live cattle export activity led to livestock's operating ebitda decreasing by $800,000, while seed and grain's operating ebitda dropped $1.8 million.
PGW was maintaining its 2016 full year operating ebitda forecast range of $61 million to $67 million.
While the sentiment in the dairy and sheep meat sector had deteriorated over the last three months, there was strong confidence in the horticulture based sectors that would provide opportunities for growth.
‘‘On balance, we consider that this guidance range remains appropriate, though we are realistic that the tough market conditions may push the final result towards the lower end of the range,'' Mr Dewdney said.
On the positive side, there was concern approaching the height of summer that El Nino conditions could result in widespread droughts.
While parts remained dry and regionalised drought concerns had not completely dissipated, it appeared growing conditions had improved in most areas.
Predictions of the hot dry summer conditions led to sheep farmers processing more of their animals in the first half of the year.
That was likely to produce lower trading volumes for PGW's livestock business in the second half of the year.
Prices for lamb remain below the five-year average, though that was counter balanced by beef pricing, which remained strong.
Falling commodity prices had replaced El Nino at the top of the list of things attracting attention.
Although commodity price movements had been mixed, the outlook for dairy prices in particular remained extremely challenging, he said.
Forsyth Barr broker Suzanne Kinnaird said the improvement in ebitda margins in its key retail operations was impressive given the tough dairy sector cashflows.
However, that dynamic was indicative of the diverse nature of PGW's operations across the agri-sectors in New Zealand, with horticulture and viticulture having likely more than offset dairy weakness.
