Revenue was up 6% to $499.3 million in the six months to December 31, operating earnings before interest, tax, depreciation and amortisation (Ebitda) up 21% to $42.1m and net profit after tax up 41% to $18m.
The director declared a fully imputed interim dividend of 12c a share, compared with 9c interim in FY20, and no final dividend at the end of that financial year.
That was because of trading difficulties in the six months to June 30 due to covid-19 lockdowns, in real estate, water, wool and sale yards.
Chief executive Stephen Guerin says the latest half-year results were over and above just a resumption of business as usual and reflected the positive trends in agriculture and horticulture.
PGW shares rose more than 20c after the announcement, now close to $3.60 compared with $2.40 a year ago.
The market took note of the interim dividend and the reconfirmed guidance of $57m Ebitda for the full year, anticipating a good final dividend and 6-7% annual yield.
Director David Cushing stood down from the board, ending a 16-year period in which either he or his father Sir Selwyn Cushing have served, following the merger with Williams & Kettle.
The family remains a small shareholder.
Chair Rodger Finlay says Cushing had been an integral part of the team which had turned around the business and delivered the results announced that day.
“PGW has traded very well and executed its strategy to drive consistent performance and growth,” Finlay said.
“Customers are benefitting from enhancements in the company, such as e-commerce channels, on-farm hybrid auctions and the popular livestock programme, Go-Stock.”
Guerin says all business units within the Retail and Water division traded better than the corresponding period in FY20.
Agency revenue was steady at $85m and the operating Ebitda of $9.5m was up 44%.
Many parts of the country came out of drought and numbers of farmers rebuilt their capital stock numbers.
Horticultural returns are buoyant and farm gate milk prices underpin confidence in the dairy sector.
“In the south, some animals are staying on-farm longer to eat the good pasture and crop yields, while in the north cattle numbers are rebuilding,” Guerin said.
“Farms that had been up to two years on the market have now sold.”
All three categories in real estate – rural, lifestyle and residential – experienced the strongest six months in six years.
“The outlook for the second half remains positive subject to the availability of listings,” he said.
International supply chains would pose some challenges in the short to medium-term, but they would ease with the roll-out of vaccines.
“We are seeing reasonable confidence from our farmers and growers and remain optimistic about the prospects for the sector,” Finlay said.
“Although there will always be unforeseen events, PGW and the country are in a stronger position than we were at the outbreak of the virus to navigate these.”
