Latest news with #PGGWrightson
RNZ News
08-07-2025
- Business
- RNZ News
PGG Wrightson acquires Nexan Group for $20 million
The PGG Wrightson store in Blenheim. Photo: Supplied Rural services company PGG Wrightson has acquired local animal health company Nexan Group for $20 million in a move the listed company says will keep production of key farm products in New Zealand. PGG's wholesale trading division Agritrade has been the exclusive distributor of Nexan Group's animal health remedies like veterinary and livestock pharmaceuticals for more than a decade, and the range has also been sold in the company's retail stores. Nexan and Vet Direct comprised the Nexan Group, that sold products under own brand Vetmed and other brands Active+, Cervidae, Farma and CentraMax, after being established more than 13 years ago. PGG Wrightson chief executive Stephen Guerin said it wanted to bring value and innovation to farmers, something the Group and its brands like Vetmed will help achieve. Stephen Guerin Photo: Supplied "We're very excited by this opportunity. They've been good partners to our business and now they're part of the family," he said. "Our idea is to create value for the business and then create value for our farmers through product innovations, which are very much core to our strategy in terms of our science and innovation we try to bring to the market place." He said Nexan was a strong and respected name in New Zealand's agricultural landscape. "This acquisition is not just about growth, it is about ensuring New Zealand farmers have access to locally-developed and produced products that drive profitability and sustainability on-farm." Guerin said New Zealand's size sometimes posed challenges in bringing new innovations to market. An example was the development of a treatment to control gastrointestinal parasites in deer, the cervidae product, which multinational companies were not looking at, he said. "Thinking about the challenges that can arise in the animal health space has been a bit problematic, because the multinationals don't always respond as quickly as they need to," said Guerin. He said it would not make "too many changes" in the operational sense as it wanted Nexan to remain nimble and responsive to the market place. "Our ownership will mean that they've got access to capital and access to the distribution network on an ongoing basis, so we think that's a win-win for both organisations." In the six months to December, the company recorded a net after-tax profit of just under $16 million, due to good market signals in livestock and rebounding rural realty. It followed a "challenging" year to June , when the company recorded a $3.1m profit , down $14.5m on the financial year prior. Nexan's current owners and directors, Gary Harrison and Jon Petherick, said jointly on the NZX on Monday afternoon, it seemed like a "natural progression" of the "strong and positive" relationship between the two companies. "Joining PGW marks an exciting new chapter for Nexan, one that will allow us to continue building on that legacy with even greater reach and capability, while staying committed to innovation and serving rural communities." The current directors and their team of five will continue in their operational roles. The transaction is expected to settle later this month. Read more: Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
30-06-2025
- Business
- Yahoo
Returns On Capital At PGG Wrightson (NZSE:PGW) Have Hit The Brakes
What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. In light of that, when we looked at PGG Wrightson (NZSE:PGW) and its ROCE trend, we weren't exactly thrilled. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for PGG Wrightson: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.054 = NZ$20m ÷ (NZ$660m - NZ$296m) (Based on the trailing twelve months to December 2024). So, PGG Wrightson has an ROCE of 5.4%. Ultimately, that's a low return and it under-performs the Food industry average of 9.6%. Check out our latest analysis for PGG Wrightson While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of PGG Wrightson. In terms of PGG Wrightson's historical ROCE trend, it doesn't exactly demand attention. Over the past five years, ROCE has remained relatively flat at around 5.4% and the business has deployed 24% more capital into its operations. This poor ROCE doesn't inspire confidence right now, and with the increase in capital employed, it's evident that the business isn't deploying the funds into high return investments. Another thing to note, PGG Wrightson has a high ratio of current liabilities to total assets of 45%. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. In conclusion, PGG Wrightson has been investing more capital into the business, but returns on that capital haven't increased. Additionally, the stock's total return to shareholders over the last five years has been flat, which isn't too surprising. On the whole, we aren't too inspired by the underlying trends and we think there may be better chances of finding a multi-bagger elsewhere. If you'd like to know more about PGG Wrightson, we've spotted 3 warning signs, and 2 of them make us uncomfortable. While PGG Wrightson may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
RNZ News
29-06-2025
- Business
- RNZ News
PGG told to pay $780,000 for farm sale misrepresentation by Supreme Court
Rural realtor PGG Wrightson Real Estate has been ordered to pay more than $780,000 in damages and other costs for the overpayment of a $2.8m farm sale in 2010. File picture. Photo: Adam Simpson PGG Wrightson Real Estate has been found liable for negligence for "carelessly" misrepresenting details about a West Coast dairy farm it sold 15 years ago, the Supreme Court of New Zealand has found. The rural realtor was ordered to pay more than $780,000 in damages and other costs on Thursday, for the overpayment of the $2.8 million farm sale in 2010. Court documents showed the sale featured incorrect descriptions about the herd size and milk production at the 105 hectare site near Hokitika. It was found the farm had never averaged the 103,000 kilograms of milk solids over three seasons as advertised, which was later calculated to be more like over 98,000 kilograms of milk solids. Despite the new owners borrowing more from the bank and spending hundreds of thousands of dollars on fertiliser and re-grassing, production never reached these levels. At their highest the new owners reached over 88,500 kilograms of milk solids and just under 60,600 at its lowest. Amid increasing debt and falling returns, the new owners were forced to sell the financially-unviable farm in 2020, a decade after the purchase. Documents showed they said they would have never bought the farm if they knew its true performance. The court has dismissed PGG's cross-appeal. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NZ Herald
05-06-2025
- Business
- NZ Herald
Wool: Kiwi companies team up to lead sustainable initiative for better returns
Two Kiwi companies are joining forces in a push to back New Zealand wool producers. PGG Wrightson and Norsewear say they are leading an initiative to grow the consumer brand value of ethically and sustainably produced New Zealand wool and boost returns for woolgrowers and the sector. PGG Wrightson chief
Scoop
05-06-2025
- Business
- Scoop
PGG Wrightson's Podcast, ‘Blue Shed Diary,' Broadcasting From Fieldays
Press Release – PGG Wrightson Blue Shed Diary, PGG Wrightsons new podcast is interviewing the movers and shakers of New Zealands primary sector from the PGG Wrightson podcast zone at site E75, Mystery Creek. PGG Wrightson launched its new podcast, ' Blue Shed Diary ' in February. The monthly podcast features news and information for, and about, New Zealand's rural and provincial communities. Like PGG Wrightson's iconic blue sheds dotting New Zealand's landscape, ' Blue Shed Diary' is a valuable resource for the nation's farmers and growers. The programme tackles important issues, explores innovations, showcases best practices, investigates how policies made in the cities impacts our rural communities, and offers advice on everything from sustainability to agronomy and animal health. 'Blue Shed Diary' is a conversation about the people and the land. The podcast takes conversations at the farm gate to the wider New Zealand community. Previous episodes feature interviews with Minister for the Environment Penny Simmonds, Former Trade Negotiator Charles Finney, APHANZ President Liz Shackleton, and Green Party Co-Leader Marama Davidson. This Fieldays ' Blue Shed Diary' is hosting a series of one-on-one interviews from the PGG Wrightson podcast zone, including exclusive interviews with politicians, technical specialists, industry leaders, and more! 'Blue Shed Diary' streams on Spotify, Amazon, or iHeartRadio.
