Rural business group PGG Wrightson's full year profit surged by nearly 50 percent on the back of strong agricultural prices and farming sector activity as it cracked the billion-dollar revenue level for the first time in six years.

Key numbers for the 12 months ended June compared with a year ago:

  • Net profit $15.6m v $10.7m
  • Revenue $1.1b v $975.3m
  • Operating earnings $64.3m v $56.1m
  • Final dividend 5.5 cents per share v 4cps

PGW chair John Nichol said the result had been boosted by strong trading across most parts of the primary sector.

"Improved returns across the red meat, dairy, wool, parts of the horticulture sector, and rural property sector contributed to stronger farmer confidence and increased investment activity."

Nichol said favourable market conditions, investment in growth projects, and tight control of the business had combined to lift earnings.

"Our FY26 results reflect disciplined progress across the three strategic measures that contribute to our long-term success: financial performance, safety performance, and the experience we deliver to our customers."

He said it research and development facility near Hastings and the Nexan animal health and Blue AG chemical businesses acquired last year were now contributing as well.

On the land drives profit

The retail and water business, which includes its store network, horticultural supplies, irrigation and other farm infrastructure, posted an improved profit on lift in sales, but was challenged by softer conditions in the wine industry and vegetable businesses.

Chief executive Steve Guerin said farmers were upbeat and spending.

"Improved confidence across the sheep, beef, dairy, and horticulture sectors, particularly kiwifruit, supported increased customer spending and investment throughout the year.

"Rural Supplies delivered record sales and profit, benefiting from increased on-farm investment in animal health, water, fencing, pasture renewal, and farm development."

Guerin said horticultural sales remained strong despite softness in the wine sector, while the booming red meat sector and continued dairy strength drove its agency business.

"Livestock was the standout performer during the year, benefiting from historically strong sheep, cattle, and dairy prices, favourable international demand for red meat, improved farm profitability, and renewed farmer confidence."

Nichol said the outlook for the agriculture sector was broadly positive with favourable global market conditions for meat, dairy and horticulture.

He said there were headwinds from geopolitical issues, the potential impact of El Niño weather pattern, and the short term dampening effect of the election.

"Although conditions across much of the agricultural sector remain favourable, the critical spring trading period remains ahead of us, and it is therefore too soon to provide meaningful guidance on expected performance."