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

 

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>