SEK, SCL, PGW- 3 NZX agri stocks under the spotlight

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SEK, SCL, PGW- 3 NZX agri stocks under the spotlight

agriculture stocks
Image source: Leka Sergeeva,shutterstock.com

Highlights

  • NZ's agriculture sector is the country’s powerhouse, making a significant contribution to its GDP
  • Seeka posts updates on its mid-season NZ kiwifruit harvest
  • PGG Wrightson raises operating EBITDA guidance for FY22

New Zealand is known to deploy the most advanced and highly mechanised farming practices and techniques, and its agriculture sector contributes a major chunk to the nation's GDP. The sector includes horticulture, dairy and meat processing companies, which supply products both for domestic as well as international consumption.

Further, the NZ agriculture sector provides employment opportunities to about 84,000 NZers.

Moreover, the NZ government has announced NZ$710 million for coming four years for garnering efforts to reduce agricultural emissions and help in the transition of the economy to a low-emissions future.

With this background, let us walk through the three NZX-listed agricultural stocks.

 NZ agriculture stocks- SEK, SCL, PGW

Source: © Artiso | Megapixl.com

Seeka Limited (NZX:SEK)

Engaged in orchard lease and management services, Seeka Limited is NZ’s premier produce company, having a market cap of around NZ$204 million.

Today, the Company shared an update regarding the mid-season NZ kiwifruit harvest, stating that while the country’s SunGold was completed, the Hayward harvest was nearly 38% completed.

Do Read: SEK & SCL: 2 consumer stocks as inflation reaches new heights

Further, SEK will reveal the current year earnings guidance once Hayward harvest and packing are completed. Also, it has disclosed that the 2022 season was quite challenging, marked by a tighter labour market condition and low crop volumes.

At the end of the market session on 19 May, SEK declined 4.33% to NZ$4.860.

Scales Corporation Limited (NZX:SCL)

Scales Corporation Limited boasts a diversified agribusiness portfolio and has a market cap of more than NZ$663 million.

Do Read: KPG, SCL, MHJ: 3 under-$5 NZX stocks that are grabbing investors' attention

A few days back, the Company announced conducting its Annual Meeting of Shareholders on 8 June at Christchurch, which could also be attended online.

SCL intends to pass resolutions related to the re-election of a few of its retiring directors and authorising its Board to determine the remuneration of the auditor for the ensuing year.

Further, another resolution that the Company plans to carry out is about increasing the total pool of directors’ remuneration. 

At the end of the market session on 19 May, SCL jumped 3.46% to NZ$4.790.

PGG Wrightson Limited (NZX:PGW)

PGG Wrightson Limited is engaged in the agricultural supply business across NZ and has a market cap of nearly NZ$352 million.

Underpinned by a strong half-year financial performance and a solid Q3 demand, the Company has lifted its FY22 operating EBITDA forecast to be nearly NZ$66 million from the previously given guidance of NZ$62 million.

Also Read: MFB, CVT, PGW- A glance at 3 food stocks as NZ food inflation remains high

Further, despite uncertainties regarding COVID-19 variants and supply chain disruptions, PGW remains focused and looks positive for the year ahead.

At the end of the market session, on 19 May, PGW was down 0.43% at NZ$4.660.

Bottom Line

New Zealand's agriculture sector has demonstrated resilience amid the pandemic and is making efforts to overcome global supply chain disruptions and inflationary pressures.

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