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


Ballance pays record rebate after record performance

1 August 2013

Ballance pays record rebate after record performance

Ballance Agri-Nutrients shareholders are in line for a record rebate and dividend of $65/tonne, along with a recommended 60 cent increase in the value of their co-operative’s shares to $8.10.

The rebate averaging $60.83 per tonne and a fully imputed dividend of 10 cents per share will be paid out nearly six weeks earlier during mid-August, with Ballance Chairman David Graham saying the payment has been brought forward to reward shareholders and assist them with cash flows at the start of the season.

“The drought may be over but the financial impacts are not, so we are fast-tracking the payment for shareholders in recognition of that so they can gain the full benefits of a good year for their co-operative as quickly as possible.”

Returns to shareholders will vary according to purchases, but based on an annual purchase of 100 tonnes, the rebate and dividend represents a $6,500 return to a fully paid shareholder. In total, Ballance’s 18,300 shareholders will receive a $65 million distribution. The recommended share value increase, driven by the co-operative’s strong balance sheet and steady financial performance, will represent a $1,800 gain for a farmer holding 3,000 shares to cover 100 tonnes of fertiliser purchases.

Mr Graham, who is retiring as Chairman in September, said Ballance has performed exceptionally well to achieve a record trading result of $92.6 million despite the drought drying up fertiliser demand and impacting sales volumes. This compares to the prior year result of $77.3 million. Group sales volumes at 1.33 million tonnes were 7.6% behind the prior year, reflected in Group revenue at $878 million compared to the prior year’s $915 million.

“We are proud of the fact we have achieved a record result in a very trying year, and more importantly in a year in which we held or reduced fertiliser prices. We started strongly, with a good first half, but the drought quickly took its toll on demand. Despite this, we maintained a very good performance to deliver an excellent result. I can step down as Chairman on a high note, knowing the co-operative is in excellent financial and operational shape.”

Chief Executive Larry Bilodeau said the co-operative’s ability to deliver a record result and rebate came down to a very disciplined approach to costs right across the supply chain during a year in which prices were held steady.

“We managed purchasing well, achieving the stability in raw material pricing which enabled us to maintain steady prices and in fact lead market prices down while achieving reasonable margins. We also kept overall costs under tight control, supported by operating efficiencies.

“These include procurement savings in shipping and freight and competitive contracts for raw material purchases for fertiliser production. Having Kapuni back on-stream for a full year meant lower import volumes, and this was another contributor to the results.”

Within the animal feed division of the co-operative demand lifted as a result of the drought, however the revenues generated did not offset the reduction in fertiliser sales which fell below budget in the final quarter because of the dry conditions.

Mr Bilodeau said the co-operative was in sound financial shape with its equity ratio at a record high of 71.3% compared to last year’s 64.2%. Net debt was down $90 million to $6 million.

“We are optimistic about the year ahead. The drought is behind us and farmer confidence is improving. We are seeing positive signs across all sectors with the dairy payout forecasts looking good, improvements in dry stock prices, and a lift in optimism in the cropping and horticulture sectors. Sales are steady at this early point in the new financial year and we expect pricing to remain competitive.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>

Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>

Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>