Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Ravensdown to pay farmer rebate as profits surges

Ravensdown to pay farmer rebate as profits surge

By Suze Metherell

Aug. 7 (BusinessDesk) - Ravensdown Fertiliser Cooperative will resume paying farmers a rebate this year after its earnings jumped some 161 percent after it quit an unprofitable Australian business.

Profit before tax and rebate from continuing operations rose $73 million in the year ended May 31, from $28 million the previous year, the Christchurch-based cooperative said in a statement. Trading profit rose to $46 million from $6 million a year earlier, which was impacted by the cost from quitting Australia. Ravensdown will pay shareholders $37.78 per tonne, made up of $15 in rebate and fully imputed bonus shares worth $22.38.

The cooperative didn't pay farmers a rebate in 2013, for the first time it missed such a payment in 35 years, after selling its stake in Australian joint venture Direct Farm Inputs, causing a pretax loss of $23 million. Ravensdown has now exited all Australian operations to focus on New Zealand, where tonnages rose 7 percent this year, reflecting increased farming production and confidence resulting in rising fertiliser needs, it said.

"Because of the actions taken since 2012-13 as part of a new strategy, the cash, debt and profit positions have been significantly improved," chairman John Henderson said. "On top of this strengthening balance sheet, we are transitioning to a more flexible forex policy which we anticipate will make a positive contribution to our current year's performance."

Net debt fell to $49 million from $249 million, its lowest debt level in a decade, Henderson said. Operating cashflow was $185 million and its equity ratio rose to 65 percent from 49 percent.

Ravensdown will outline plans to reinvest in the core business at its Sept. 15 annual meeting in Marton.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news