Thank you, Amy. Ata mārie, good morning, and welcome to the PGG Wrightson's results briefing for six months ended 31st December 2025. My name is Stephen Guerin, Chief Executive Officer, and I'm pleased to provide you an overview today of our interim results for the 2026 financial year. Joining me on the call are Peter Scott, our CFO, and Julian Daly, General Manager of Corporate Affairs, who is also our Company Secretary. Today I'll summarize a high level of our financial results and trading performance, and will comment on our thoughts on the year ahead. There will be time for questions at the end of my commentary, and I welcome receiving those from you. A more detailed commentary on our half year results are available in our half year report, which we released on the NZX online today.
I will not present all the content outlined in our release, but will summarize key matters so that we can move on to the more questions and answer time at the end of this call. Turning to the financial performance. Operating EBITDA of NZD 45.7 million was up NZD 4.4 million, or 11% on the prior corresponding period. Operating revenue of NZD 619.4 million was up NZD 49.1 million, or 9%. Net profit after tax of NZD 17.3 million was up NZD 1.3 million, or, sorry, 8% up. Just repeat that again, net profit after tax of NZD 17.3 million was up NZD 1.3 million by 8%. An interim dividend of NZD 0.045 per share was declared today.
We've reaffirmed our forecast for FY 2026 full year Operating EBITDA guidance of around $64 million. PW delivered improved performance on the six months of the financial year, reflecting both strong operating execution and generally supportive market environment. The first half of the year was characterized by favorable commodity prices across a number of key sectors for PW customers. Dairy pricing remained supportive, providing confidence and cash flow stability. Red meat markets were particularly strong, driven by tight global supply and resilient offshore demand. Improved on-demand, on-farm profitability translated into demand for PW's livestock services, pasture renewal, agronomy, and animal health products. Wool prices also improved during the period. Positive export prices for kiwifruit and apples resulted in good demand, which for PW's products and advisory services. By contrast, the viticulture and arable sectors have experienced weaker demand.
The broad real- rural real estate market has contributed positively during the period, reflecting increased confidence across the rural property sector generally. Against this backdrop, PGW delivered improved performance across several key areas of the business. PGW invested in strategic initiatives designed to strengthen its market position and enhance customer value. Investments during the period include the acquisition of the animal health manufacturer, Nexan Group, and the launch of PGW's Blue Ag agricultural product range. Turning specifically to individual business units. Our retail and water business, which incorporates rural suppliers, fruit and veg suppliers, water, and Agritrade, saw Operating EBITDA of NZD 41.8 million, up 2.3% or 6%. Revenue was NZD 528.6 billion, up NZD 38.3 million, or 8% on the prior corresponding period.
PW acquired the lease of the Geelen Family Research Station in Hastings, proving our long-standing commitment to research and development. The 2.8 hectare site provides our team with a dedicated hub for horticultural and agricultural product trials. This strengthens PW's technical capability and innovation product development pipeline. PW acquired the Nexan Group, owner of the Nexan and Rit-tard animal health brands. This acquisition strengthens our position by bringing this trusted New Zealand-made product range into the house. This business is trading well, and we're already seeing the benefits of a well-aligned to our sheep farm. Another key initiative was Blue Ag, our private label for AgChem range, which was launched and has been through its first trading season. The new portfolio of registered active ingredients improves supply chain resilience, provides price point control, and offers customers greater choice. Turning to our agency businesses.
Our agency businesses include livestock, wool, and real estate. The agencies group delivered an Operating EBITDA of NZD 8.7 million for the first six months of the 2026 financial year, an increase of NZD 1.8 million, or 27% compared to the prior, same prior period. Revenue was NZD 89.8 million, up NZD 2.7 million or 14% compared to the prior period. Animal continued to be in high demand, supported by firm beef schedules, which encouraged increased trading activity. Sheep prices were significantly higher than last year, as confidence in the dairy sector improved on the back of strong milk forecasts and pricing. Demand for our GO-STOCK platform continues to grow, with a large number of new contracts being signed. Our sales profile was also strong across the network.
Better our online trading, livestock trading platform engaged through the first half of FY 2026, reinforced by sustained demand for online trading and live streaming from sale yards and on-farm auctions. Headage volumes with key partners remained ahead of the prior period, as more livestock was transacted through supply chain relationships. The business gathered across a strong wool market, with prices being paid in the upper trajectory, providing a more positive outlook for growers. PGW Real Estate delivered a pleasant first half performance, supported by continued confidence and improved profitability in the rural sector. Moving to the all-important cash flow. PGW recorded operating cash outflow of NZD 49.9 million for the first six months of the financial year. This represented an NZD 18.9 million higher outflow versus the prior comparative period of NZD 31 million.
The higher operating cash flow was a result of a seasonal increase in working capital over this spring trading period. Gold trading in our rural, rural and water and livestock businesses, together with higher livestock values, resulted in higher net working capital movements, including gross stock of NZD 22.3 million versus the prior comparative period. Cash flow outgoings from investing activities was NZD 20.5 million, an increase of NZD 15.2 million. This included NZD 19.7 million acquisition of the Nexan Group, along with fixed asset and tangible purchase of NZD 2.3 million, partially offset by proceeds from fixed asset disposals of NZD 1.5 million. Net interest-bearing debt was up NZD 64 million from 31 December 2024 to be NZD 170.7 million.
The board declared a fully increased dividend of NZD 0.045 per share, which will be paid on the 8th of April 2026 to holders on PGW's share registry at 5:00 PM. on the 26th of March 2026. We've included an update on our sustainability progress in the half year report, including the introduction of further electric vehicles into PGW's fleet. I refer you to Page 16 of the half year report for full details in that regard. Looking into the remainder of the financial year, the operating environment has certainly continued to be predominantly positive and presents big opportunities for PGW in the sector. Overall conditions across agriculture remain favorable, with most parts of the sector performing well, supported by good demand and strong input pricing.
The red meat market remains a particular source of strength, underpinned by constrained global supply. The positive outlook for dairy was reinforced last week by Fonterra raising the forecast milk pay price midpoint range from NZD 9-NZD 9.50 per kg comparable milk solids. Wool has also shown renewed momentum, with improving demand assisting greater price stability. These conditions increase positive returns and underpin farmer confidence. Horticulture continues a moderate and steady expansion, led by kiwi fruit and apple sectors. Viticulture and animal farming remain the key exceptions, with subdued demand and pricing. Optimism in the rural real estate market is expected to continue, supported by dairy profitability and lower interest rates. The broader economic indicators are looking more encouraging also. You know, these trends continue positive in farmer incomes and reinforce an optimistic outlook for the rural sector moving forward.
PGW is well placed to support its farmer and grower customers and to benefit from opportunities arising from the forecast export demand. While remaining mindful of the ongoing challenges, we are optimistic about the remainder of the financial year and remain on track to deliver our forecast 2364 year Operating EBITDA guidance of around NZD 64 million. Grateful to the contribution of our nationwide team of specialists and their commitment to supporting our customers and rural communities and each other. I thank and acknowledge our shareholders for the continued confidence PGW has worked to deliver long-term value. The half year report is available on the New Zealand Stock Exchange website under the PGW ticker and on PGW's website also. This concludes the formal part of the presentation, and Amy, I now welcome questions from participants. Thank you.
Thank you. To ask a question, you may press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Once again, that's star then one to ask a question at this time. The first question comes from Paul Glass , private investor. Please go ahead.
Yeah, good morning, guys, and good to have a growing result there. I'm just wondering what the impact contribution was for Nexan. I know it cost about NZD 20 million as an investment. What, maybe I should ask you, Peter, what was its contribution to impact?
Yep, good question, Paul. If you go to note seven in the financial statements, you'll see the revenue and the impact. The impact contribution for the was actually five months, so from the 1st of August through to the 31st of December, given we acquired on the 31st of July, was NZD 1.9 million. One thing to bear in mind, of course, is that Nexan, you know, most of the transactions are within New Zealand, so they're eliminated from a, from an accounting perspective, but the contribution was NZD 1.9 million from an impact point of view.
Paul, Stephen here. You know, I'd may add a couple of additional comments. As you said, that was, as Peter's acknowledged, that's for the first five months. In terms of our business case for approval from our board, the business is trading ahead of expectations in that regard, too, so. Thank you for the question.
Once again, to ask a question, you may press star then one on your telephone keypad. There are no further questions at this time. I'll now hand back to Mr. Guerin for closing remarks.
Thank you, Amy. I want to again, acknowledge the support of our staff and and producing the result. The market environment is conducive, but our team have to get out of bed every day of the week and across the country, and we really appreciate the efforts in supporting our investors with the confidence in PGW. Thank you again. We look forward to talking to you in August when we deliver our full year results, and we're focused on meeting our market guidance. We thank you for your time today, and we we appreciate you making yourselves available for this call. Thank you, Amy.
That does conclude our conference for today. Thank you for participating in AnalystConnect .