From AR2019 p7, we now have an indication of how the 'corporate structure review' will affect earnings going forwards.
"We expect to see the benefit of reduced costs flowing through progressively with savings in excess of $2.5m expected in FY2020"
With the seed business gone, expectations are reset. As an exercise I have gone through the last few years results and removed 'Seed & Grain' EBITDA from the Operating EBITDA. This time, I have added back in the recently announced 'corporate savings'.
Here is the multi-year earnings picture that results:
|
Combined EBITDA |
less Seed & Grain EBITDA |
add Corporate Savings |
equals PGWRR EBITDA |
FY2014 |
$58.747m |
$33.965m |
$2.500m |
$27.282m |
FY2015 |
$69.631m |
$40.506m |
$2.500m |
$31.675m |
FY2016 |
$70.181m |
$41.862m |
$2.500m |
$30.819m |
FY2017 |
$64.499m |
$37.045m |
$2.500m |
$39.974m |
FY2018 |
$70.174m |
$35.607m |
$2.500m |
$37.067m |
FY2019 |
|
|
$2.500m |
$26.925m |
Average |
|
|
|
$32.290m |
1/ This period covers the 'modern' era where Mark Dewdney's 'One PGW' philosophy started to permeate the group.
2/ I have used only 'Operating EBITDA'. That metric Leaves out all 'Equity Accounted Investee Profit', and consequently removes the profit contribution from 'Agimol', representing the 50% interest in 'Agricentro' in Uruguay, an equity investment that was subsequently fully taken in house (FY2019) and latterly sold (EOFY2019). Equity accounted New Zealand based investments retained, being a 50% interest in 'Canterbury Saleyards' and a now 33% interest in 'Agri Optics New Zealand', I do not consider have contributed materially to EBITDA.