PKW Robust in the face of Covid-19 crunch

The shockwave created by the Covid-19 pandemic has disrupted markets, damaged businesses and had a major impact on lives and communities across the globe.

While quick action to lock down New Zealand prevented a mass outbreak of the virus here, PKW has not been immune to the effect the pandemic has had on industry sectors such as seafood and tourism.

“Our Port Nicholson Fisheries (PNF) and Ngāmotu Hotel partnerships were significantly impacted by the pandemic, with both being closed temporarily,” says PKW’s Chief Executive Officer Warwick TauwhareGeorge. “This quick reaction to the fast-changing situation meant we mitigated our risk considerably, reducing overheads and protecting our people.”

“Government wage subsidies and our diversification strategy have also helped cushion the blow, and we have come through the last few months in a much better position than might have been expected.”

While the collapse of the Chinese seafood market and the ban on international and regional travel meant the doors were temporarily shut at PNF and the Novotel, PKW’s dairy farms performed well as an essential service and the Fonterra payout for the

2019/2020 financial year is holding up. Global milk markets are fluctuating but production remains on target and on budget.

The Incorporation’s core asset of corpus land remains central to its success with lease payments remaining unaffected.

“Our Tai Hekenga partnership is an investment which will continue to deliver for decades to come, with ground leases housing the Ministry of Education, nine schools, the Ministry of Justice and the Ministry of Internal Affairs being part of the portfolio,” says Joe Hanita, PKW’s Chief Financial Officer. “It provides stability and surety during a time when no-one can really tell what is going to happen next.” Rockit Apples also performed well during the lockdown as another essential service, with strong growth reflecting demand in the Asian markets.

“While there is no doubt that our business has faced some significant challenges these last few months, we are fortunate to be doing better than many due to solid decision-making and a clear strategic vision. Our focus on diversification over the past four years has ensured we were able to cushion the blow of Covid-19, and we have come through the last few months in a better position than might have been expected,” says Warwick.

“That is not to say we are out of the woods, because I don’t think this virus has finished with us yet, but we are well-placed to face whatever may come.”

“Currently our fishermen are back out on the water, our hotel rooms are starting to fill, and our farmers are doing well as we look to move forward during the rest of 2020 and into 2021.”