Investors Will Want PGG Wrightson's (NZSE:PGW) Growth In ROCE To Persist

As an investor, you're always on the lookout for companies that consistently deliver strong returns on capital employed (ROCE). One such company that has caught our attention is PGG Wrightson (NZSE:PGW), a New Zealand-based agricultural company. In this article, we'll explore why investors will want to keep an eye on PGG Wrightson's growth in ROCE.

PGG Wrightson's ROCE growth can be attributed to several strategic initiatives that have driven the company's success. Here are some key factors contributing to their consistent growth:

1. Operational Efficiency: PGG Wrightson has focused on improving operational efficiency, which has led to increased productivity and reduced costs. This is evident in the company's statement that "the team met or exceeded our going-in plans for sales, earnings, and cash in a difficult operating environment and despite significant cost headwinds." (Source: Jon Moeller, P&G Chairman of the Board, President & CEO, April 2023)
2. Strategic Focus: The company's strategy of focusing on daily use categories where performance drives brand choice has been successful. This is reflected in the statement that "the model is dynamic and sustainable. It adapts to the changing needs of consumers and society and is focused on growing markets – creating versus taking business – the most sustainable and most profitable way to grow." (Source: Jon Moeller, P&G Chairman of the Board, President & CEO, April 2023)
3. Investment in Innovation: PGG Wrightson has invested in innovation and constructive disruption across the value chain. This is evident in the company's statement that "we’re driving PRODUCTIVITY improvements in cost and cash to fund these investments and improve profitability. We’re leading the CONSTRUCTIVE DISRUPTION across the value chain in our industry in order to meet challenges." (Source: Jon Moeller, P&G Chairman of the Board, President & CEO, April 2023)
4. Agile and Accountable Organization: The company's agile and accountable organization structure and culture have contributed to its success. This is reflected in the statement that "we remain committed to our strategy – a focus on daily use categories where performance drives brand choice, superiority (of product, package, communication, go-to-market execution and value), productivity, constructive disruption, and an agile and accountable organization structure and culture – all in pursuit of sustainable, balanced growth and value creation." (Source: Jon Moeller, P&G Chairman of the Board, President & CEO, April 2023)

These factors have contributed to PGG Wrightson's ROCE growth, as the company has been able to improve its operational efficiency, execute its strategic plan effectively, invest in innovation, and maintain an agile and accountable organization.



In conclusion, investors will want to keep an eye on PGG Wrightson's (NZSE:PGW) growth in ROCE, as the company's strategic initiatives have driven consistent returns on capital employed. By focusing on operational efficiency, strategic focus, investment in innovation, and an agile and accountable organization, PGG Wrightson has been able to deliver sustainable, balanced growth and value creation for its shareholders. As an investor, you should consider adding PGG Wrightson to your watchlist and monitor their progress to capitalize on their growth potential.