billion for the first time since 2019." data-test-ui="article-media__image" fetchpriority="high" decoding="async" />Farm services group PGG Wrightson has cashed in on a strong agriculture sector with a 46% lift in net profit to $15.6 million over the June year.
Operating turnover hit $1.1 billion, up 10% – its highest point since the divestment of PGG Wrightson Seeds in 2019.
Chair John Nichol said the result reflected improved conditions across several key agricultural sectors.
“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.
“These favourable market conditions, combined with disciplined operational execution and continued investment in strategic initiatives, supported improved earnings across the group.”
The board declared a fully imputed final dividend of 5.5 cents per share, bringing the total for the year to 10c, and up from 2025’s total of 6.5c.
The company last year bought Nexan Group – a New Zealand animal health product manufacturer – for $20m.
It also launched its own private label agricultural chemical range.
“The integration of Nexan has progressed well, Blue AG completed its first full season of trading, and our Hastings R&D Station is already delivering valuable technical and commercial insights,” Nichol said.
Chief executive Stephen Guerin said the Retail & Water Group delivered a solid result, achieving record revenue and growth across most business units.
Operating revenue increased 10% to $851.2m, while operating earnings before interest, tax, depreciation and amortisation (ebitda) increased 6% to $44.5m.
“Improved confidence across the sheep, beef, dairy, and horticulture sectors, particularly kiwifruit, supported increased customer spending and investment throughout the year,” he said.
Rural Supplies delivered record sales and profit, benefiting from increased on-farm investment in animal health, water, fencing, pasture renewal, and farm development.
Fruitfed Supplies maintained market share and grew revenue despite ongoing challenges in the viticulture sector, while strong kiwifruit activity and continued investment across the horticultural sector supported demand.
PGW’s The Agency Group delivered a particularly strong result in 2026, with operating revenue increasing 10% to $221.5m and operating ebitda increasing 23% to $29m.
The performance was underpinned by strong red meat and dairy prices and a buoyant rural real estate market, Guerin said.
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.
Strong livestock values supported growth in commission income.
Nichol said New Zealand’s agricultural sector was entering 2027 from a position of relative strength, supported by healthy international demand and favourable conditions across many key sectors.
Geopolitical tensions, supply chain disruption, elevated input costs, and the potential impact of El Nino conditions presented risks, he said.
“In addition, election-year dynamics may contribute to a degree of caution in parts of the rural economy, particularly the rural property market.”
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
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