Friday, December 8, 2023

PGG Wrightson stays on earnings track

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Autumn begins well after productive first nine months of financial year.
PGG Wrightson chief executive Stephen Guerin and chair Joo Hai Lee.Lee says the outlook for the global sheepmeat and beef trade is good.
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PGG Wrightson has reaffirmed its earnings guidance of $57 million and says the company has performed well over the first nine months of the June 2023 financial year.

Chair Joo Hai Lee said autumn has begun well with stable weather for harvesting and re-grassing.

“The outlook for global sheep meat and beef trade is good and rural input costs are reducing from historical highs with global fertiliser prices coming back.

“While at a general level farmer confidence has lifted in recent months, we note that overall sentiment remains in deeply negative territory,” he said.

Cyclone Gabrielle has taken a heavy toll on farmers and orchardists and recovery will take a long time, he said.

“Our outlook remains cautious given the volatile operating environment at a macro level.

“However, PGW continues to perform well and execute on its strategy and there is strength in the diversity of our businesses, and this gives us confidence that we are well placed.”

PGG Wrightson also announced greenhouse gas emissions reduction targets for company operations (scope 1 and 2) of 30% by 2030 compared with a 2021 baseline.

It will extend its reporting on supply chain (scope 3) emissions while working with suppliers to encourage reductions.

Other targets include improved energy efficiency across retail stores, improvements in vehicle fleet efficiency, improved utilisation of recycling programmes, cultivating a strong safety and wellbeing culture, and transparency in reporting.

Emissions come mainly from the vehicle fleet and electricity consumption in stores.

Transition of the fleet will begin when fit-for-purpose hybrids and EVs become available.

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