Agria's New Zealand Listed Subsidiary, PGG Wrightson Reports Improved First
BEIJING -- (Marketwire) -- 02/26/13 -- Agria Corporation (NYSE: GRO)
(the "Company" or "Agria") today announced that its New Zealand
listed subsidiary, PGG Wrightson Limited (NZX: PGW) ("PGW"), has
released its financial results for the six months ended December 31,
2012. A copy of PGW's financial results and the following market
announcement can be downloaded from the website:
www.pggwrightson.co.nz/OurBusiness/MarketAnnouncements. These results
will be consolidated in the results of Agria for the six months
period ended December 31, 2012.
Mr. Alan Lai, Chairman of Agria Corporation, said, "I am pleased to
see continued improvement in PGW's performance year on year. PGW
reported improved profits and strong net cash inflow from operating
and investing activities of NZ$24.4 million, which led to significant
improvement to its financial position. With this half-year
announcement, PGW has also timely followed through with its dividend
policy to its shareholders as announced last December. I look forward
to PGW playing a more significant role in Agria's global strategy and
PGW announced an increased profit of NZ$4.8 million for the six
months to 31 December 2012, up from NZ$3.1 million a year ago. PGW
also reported strong cash flows from operating and investing
activities, delivering a combined total of NZ$24.4 million (up from
NZ$6.0 million last year). This result follows a strong profit for
the full year to 30 June 2012 announced last August and has allowed
the company to halve its net debt position over the course of the
last 12 months. PGW Managing Director, George Gould, credited the
improvement to stronger operating earnings across all major
businesses along with working capital efficiencies and collection of
the Crafar Farms debt in December.
In line with the dividend policy announced in December, directors
have declared a fully imputed dividend of NZ2.2 cents per share which
will be paid to shareholders registered at the record date of 14
March 2013. The dividend will be paid on 28 March 2013.
Mr Gould said that the improved earnings reflected strong operating
performance across all major activities of the company. "The tougher
tions being faced by farmers clearly impact on some areas of our
business, but overall our businesses have performed strongly and most
have lifted earnings year-on-year," Mr Gould said.
"We are especially pleased with the performance of our New Zealand
Seed, Retail, Wool and Irrigation & Pumping businesses -- all of
which showed sizeable gains."
Mr Gould said he was pleased with progress being made in PGG
Wrightson Rural Supplies and Fruitfed Supplies, both being retail
businesses facing intense competition from farmer owned
"Our job is to add value to our farmer clients, helping them make
their farming businesses more profitable. If we do add value, there
is worthwhile margin for us, and the track record shows we are
achieving success on this front."
"It's about having the best rural servicing reps across all
businesses, in every region throughout New Zealand."
"While our trading businesses such as Livestock, Grain and Real
Estate are more susceptible to overall market conditions, their
underlying performance remains solid. In Livestock, our tallies
remain broadly in-line with last year but the decline in sheep and
deer values impacted on earnings."
"Our investment in R&D continues to underpin the performance of our
Seeds businesses and we achieved outstanding growth in sales from the
newly launched CleanCrop(TM) Brassica system and continue to see
strong growth from the AR37 range of rye-grass seeds. Confirmation
last week of arrangements for the Primary Growth Partnership for Seed
and Nutritional Technology Development were positive and will be
valuable in further enhancing our R&D programmes."
Revenue for the Retail business is not directly comparable to last
year due to a move to transacting some categories as an agent rather
than a principal. This did not impact on profit but resulted in a
NZ$91.2 million reduction in stated revenue.
About Agria Corporation
Agria Corporation (NYSE: GRO) is an agricultural company with
operations in China and internationally. Agria operates three
principal business lines: China seeds, international seeds and
agriservices. In China, Agria engages in research and development,
production and sale of seed products, including field corn seeds,
edible corn seeds and vegetable seeds. Agria owns through Agria Asia
a 50.22% equity interest in PGG Wrightson Limited, New Zealand's
largest agricultural services company. For more information about PGG
Wrightson Limited, please visit www.pggwrightson.co.nz. For more
information about Agria Corporation, please visit www.agriacorp.com.
Safe Harbor Statement:
This announcement contains forward-looking
statements. These statements, including the management's commentary,
are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Agria may also make
written or oral forward-looking statements in its periodic reports to
the U.S. Securities and Exchange Commission on Forms 20-F and 6-K,
etc., in its annual report to shareholders, in press releases and
other written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about Agria's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to, those risks
outlined in Agria's filings with the U.S. Securities and Exchange
Commission. All information provided in this press release is as of
the date of this announcement unless otherwise stated and Agria does
not undertake any obligation to update any forward-looking statement,
except as required under applicable law.
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