Ballance Agri-Nutrients will pay shareholders a record rebate and dividend of $50.29 per tonne after achieving an operating profit of $85.9 million for the 2010-11 financial year.
The result is more than four times the $20.7 million achieved in the previous year. The total distribution to shareholders is $49 million.
The rebate payment is calculated based on both the quantity and the value of the product purchased, meaning farmers who purchased higher-value products such as DAP, triple superphosphate or potash, will receive a rebate and dividend of more than $62 per tonne, with urea returning a rebate of more than $54 per tonne.
In addition, directors will recommend to shareholders at the annual meeting in Napier in September to to raise the share price from $7 to $7.50, which will equate to another $16.2 million of value being returned to shareholders this year.
The satisfying distribution to shareholders followed a strong second-half performance by the co-operative, including record March sales, chairman David Graham said.
After a late spring and a slow start to summer, farming confidence improved, helped along initially by good returns in the dairy sector. Demand increased sharply through autumn with the red meat sector also enjoying much better prices.
That optimism in the sector meant farmers were prepared to spend on fertiliser to make the most of good growing and market conditions, Mr Graham said.
Group sales volumes at 1,392,400 tonnes were 19% ahead of the previous year. Ballance recorded a 9.7% increase in total revenue of $760.1 million for the financial year.
Cashflow from operating activities was $84 million compared with $155.8 million for the previous year, reflecting the co-operative's decision to carry more inventory to meet anticipated demand increases.
Operating costs were $15 million higher at $146 million, mainly as a result of higher volumes sold.
