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

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news