- Agriculture is a significant contributor to NZ’s tradeable economy.
- Allied Farmers delivered a 163% rise in NPAT of $2.021 million for FY2021.
- PGG Wrightson expects its operating EBITDA to be in line with last year’s at nearly $53 million.
Agriculture industry is the major economic powerhouse for New Zealand. NZ produces a large number of dairy, meat and horticultural products that are consumed locally as well as overseas.
The country is the largest exporter of dairy products and sheep meat across the world.
Let’s have a look at 2 NZX agricultural stocks with high YTD yield.
Image source: © 2021 Kalkine Media, Data source- Refinitiv
PGG Wrightson Limited (NZX:PGW)
Functioning as an agricultural supply company, PGG Wrightson witnessed strong trading performance in Q1 of FY22.
Rodger Finlay, PGW Chairman, stated that the Group is seeing positive early signs demonstrated through the confidence visible in farmer and grower customers as they prepare for their production requirements.
The Company expects an operating EBITDA in line with its performance in 2020 where it reported the EBITDA figure of $53 million. PGW will update on its guidance numbers after the spring trading months when its half-year results will be released in February 2022, as per Mr Finlay.
PGW remains confident that it will deliver on its Group strategy to grow its business.
On 19 November, PGW ended the trading session flat at $4.36.
Allied Farmers Limited (NZX:ALF)
Rural services and finance company, Allied Farmers reported an NPAT attributable to shareholders of $2.021 million for FY2021, up by 163% on FY2020 due to improved performance of its livestock business and contribution from ALF’s investment in rural property manager, NZRLM.
ALF Board benefitted from rights issue and placement done in 2020 that helped in 50% acquisition of NZRLM, growth in its livestock lending business and a modest investment in NZRLM.
The Group figured in a review that its strategic goals can be fulfilled through utilisation of its current balance sheet and ALF does not need any extra share placement.
On 28 October, ALF appointed Mark Franklin as the Board Chairman effective 1 November 2021.The Group will conduct its online ASM on 24 November.
On 19 November, ALF ended the trading session at $0.8, up 2.56% from its previous close.
These companies are the backbone of the economy and NZ government is taking various steps to reduce agricultural emissions to tackle climate change.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)