PGG Wrightson forecasts $52m operating EBITDA

PGG Wrightson Limited has announced a forecasted Operating EBITDA of around $52 million for the year ending June 30, 2024.

The company's Acting Chair, U Kean Seng, acknowledged the volatility in the global economy and international markets, as well as the impact of New Zealand's monetary policy.

The agricultural sector is facing challenges such as recovering from cyclones, potential drought conditions, and declining demand in key export markets.

However, the company remains optimistic about the medium to long-term fundamentals of the sector, with projected growth in global population and demand for protein.

The Ministry for Primary Industries expects steady growth in New Zealand's primary exports.

Despite the mixed signals in the macroeconomic environment, PGW is in a strong operational position to support its clients.

The company expects its short-term Operating EBITDA to be lower than the previous year's result of $61.2 million, but will reassess the full-year forecast after the spring trading period.