Positive results for rural sector

MEDIA RELEASE: Farmlands Trading Society Limited

Growth plan keeps delivering positive results for rural sector

FOR IMMEDIATE RELEASE
1 October 2009

Challenging economic conditions have not stopped North Island’s largest co-operative rural retailer from delivering positive results to customers and shareholders around the country.

Six new stores, another annual loyalty rebate, retail refurbishment and proposed property sales leaseback as part of a strategic growth plan all add up to good news for Farmlands Trading Society Limited and its 24,000 shareholders nationwide.

Just a year into their three year plan, Farmlands is making significant progress towards its goal of 25 per cent share of the North Island rural merchandise market says chairman Lachie Johnstone.

“A sound, planned approach to all aspects of the Farmlands’ business has provided positive results for the past financial year and it’s especially pleasing given the tough economic climate affecting all sectors.”

“Careful management and efficiencies has meant that despite the challenges faced we have achieved sales revenue of $531 million in the 2008/09 year, up 20 per cent on last year, which delivered a loyalty rebate of $4.9 million – only slightly down on last year’s record payout.”

Shareholders can expect their rebate cheques to arrive this week, with amounts determined on a pro rata basis; the more a shareholder spends with Farmlands and Farmlands Card Partners, the bigger the rebate received.

The Farmlands retail network has widened this year with four new stores already operational in Taupo, Te Kuiti, Marton and New Plymouth, and two more set to open shortly as part of a planned expansion from 39 to 45 stores by 2011. Kaitaia will open its door later this month, followed by Hautapu Cambridge in November. Refurbishment of existing stores has also continued, with Levin the latest outlet to get a facelift.

In the current economic climate Farmlands will continuously explore options to fund ongoing growth and manage its balance sheet prudently.

Chairman Lachie Johnstone says overall Farmlands is positioning itself well for the future.

“We have a solid and vibrant agricultural industry in New Zealand, and the overall economy is basically sound. Currently sales are strong, our card network is growing, we continue to be recognised as the preferred store retailer by many suppliers and I believe while there are still challenges to be faced, there is light at the end of the tunnel.”

ENDS

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