Beijing, China
August 12, 2014
Agria Corporation (NYSE: GRO) (the "Company" or "Agria"), a global agricultural company, today announced that its New Zealand-listed subsidiary, PGG Wrightson Limited (NZSE: PGW) ("PGW"), released its financial results for the fiscal year ended June 30, 2014. These results will be consolidated into Agria's results for the year ended June 30, 2014.
A copy of PGW's market announcement and its financial results can be downloaded from: http://www.pggwrightson.co.nz/OurBusiness/MarketAnnouncements.
For the fiscal year ended June 30, 2014, PGW reported operating earnings before interest, tax, depreciation and amortization ("operating EBITDA")1 of NZ$58.7 million, a 28% increase from NZ$45.8 million for the prior fiscal year. Revenue of NZ$1.2 billion increased 8% from the previous year. Net profit after tax of NZ$42.3 million represented a NZ$27.6 million increase from the previous year, after adjusting for the one-time goodwill impairment in fiscal year 2013. Cash from operating activities grew by NZ$15.5 million to NZ$54.8 million.
PGW's board of directors declared a fully imputed dividend of NZ3.5 cents per share on the back of strong financial performance and cash and capital inflows.
Alan Lai, Executive Chairman of Agria, commented, "We are pleased to see the growing momentum in financial results at PGW, as changes implemented by its new management team begin to take hold. PGW's Chief Executive Officer, Mark Dewdney, is leading an engaged and passionate group of people. PGW is an integral element of Agria's strategy to grow its three key business units in Seed and Grain; Crop protection, Nutrients and Merchandise; and Rural Services, and we look forward to continued success in fiscal year 2015."
Mr. Lai also noted that the PGW Board was pleased to announce the appointment of Trevor Burt as Deputy Chairman. "Trevor is the Chairman of Ngāi Tahu Holdings Corporation Ltd, Agria's key strategic partner in our investment in PGW. Trevor's appointment as the Deputy Chairman marks our long term commitment and engagement with PGW, our management team and the people of New Zealand."
Mr. Dewdney stated, "PGW continues to represent a leading option for investors looking for broad based exposure to New Zealand agriculture and the commercialization of agri-technologies to our growing international markets. This year's strong financial results demonstrate the overall strength of the company. We have developed strategies to grow our business based around our clients' business needs. Our financial results suggest that those plans are on track and are delivering real benefits for our clients, staff and shareholders."
Mr. Dewdney continued, "The outlook for our core sheep, beef, arable, horticulture and viticulture markets is positive and will continue to be a major focus for the company. In addition, we are going to put more emphasis on the dairy, water and agronomy sectors in New Zealand. We also see potential to grow strongly in South America and our other international markets."
1 PGW's definition of Operating EBITDA: Earnings before net finance costs, income tax, depreciation, amortization, the results of discontinued operations, fair value adjustments, non-operating items and equity accounted earnings of associates.
About Agria Corporation
Agria (NYSE: GRO) is a global agricultural company with three principal business segments: Seed & Grain; Crop Protection, Nutrients & Merchandise; and Rural Services. The Seed and Grain segment is engaged in research and development, production and sale of a broad range of seed products and trading of seed and grain products globally. The Crop Protection, Nutrients and Merchandise segment operates an extensive chain of retail stores that supply farm input materials. The Rural Services segment provides livestock trading, wool trading, irrigation and pumping, real estate agency and other agriservices.
PGG Wrightson delivers strongest result for several years
PGG Wrightson Ltd* (PGW) today announced its strongest operating result for several years with a 28% uplift in Operating EBITDA.
For the period ending 30 June 2014, PGW achieved operating earnings before interest, tax, depreciation and amortisation (Operating EBITDA)** of $58.7 million, up from $45.8 million for the prior financial year.
Revenue was up eight per cent and after factoring in last year’s goodwill impairment, the $42.3 million net profit after tax was $27.6 million ahead of the 2013 result. Cash from operating activities grew by $15.5 million to $54.8 million.
The company will pay a fully imputed dividend of 3.5 cents per share which will be paid to shareholders registered as at the record date of 26 August 2014. The dividend will be paid on 3 October 2014.
This distribution is inclusive of a final dividend of 2.5 cents per share and an additional special dividend component of 1 cent per share to recognise the strong cash flows in the past year. This will bring the total dividends paid for the full year to 5.5 cents per share.
“PGW continues to represent a leading option for investors looking for broad based exposure to New Zealand agriculture, and the commercialisation of agri-technologies to our growing international markets. This year’s strong financial result demonstrates the overall strength of the company.
“We have developed strategies to grow our business based around our clients’ business needs. This financial result suggests those plans are on track and are delivering real benefits for our clients, staff and shareholders.
“New Zealand agriculture has performed strongly over the last year. Our size, products and geographic reach, technical expertise, and dedicated staff allowed PGW to capitalise on that” said Mark Dewdney, who commenced as Chief Executive Officer on 1 July 2013.
Mark Dewdney said the company has recently undertaken a significant exercise to refresh the PGW Group strategic plan. “This plan is now being implemented at both the PGW Group and individual business unit level. Our business unit strategies provide clear direction on how we see the markets in which we operate, and how we are responding to capitalise on the opportunities available to PGW. The strategic initiatives have been embraced positively by the business. The company will outline the key elements of the plan to shareholders and the market in coming months.”
“We see an exciting phase where PGW can look to increase investment in its people, product, service and technology offering. We are challenging every business unit to grow market share. The outlook for our core sheep, beef, arable, horticulture and viticulture markets is positive and will continue to be a major focus for the company, and in addition we are going to put more emphasis on the dairy, water and agronomy sectors in New Zealand. We also see potential to grow strongly in South America and our other international markets.”
PGW’s balance sheet remains strong and this enabled the company to make strategic investments in Water Dynamics and AG Property Holdings during the year.
PGW Chairman, Alan Lai, commented, “We continue to see significant improvements across all aspects of the company. The management team has been given a challenge to grow the business. Mark has an engaged and passionate group of people working with him. The Board is aligned to the strategy and believes that PGW can capitalise on its unique position in the agriculture sector in New Zealand and other markets in which it operates internationally.”
Mr Lai also noted that the Board was pleased to announce Trevor Burt‘s appointment as Deputy Chairman. “Trevor has been a director of PGW since December 2012 and is well placed to support the company from his Christchurch base where PGW’s head office is also located. The Board and I welcome the additional cover Trevor will be able to provide the business as Deputy Chairman.”
In concluding, Mark Dewdney said that “PGW was confident that it could deliver further increases on this year’s Operating EBITDA result through the delivery of its strategy. However, given the volatility in the forecast dairy price at the current time, and the need to assess the likely impact for PGW’s clients and the sector, it was the company’s intention to provide a forecast for the current fiscal year at the time of the Annual Shareholders Meeting in October.”
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