Fertiliser co-operative Ravensdown intends returning to shareholders $36 million of last year's $40 million pre-tax net profit, after reporting record turnover.
Revenue in the year to May 31 was a record $672 million, up 35% on last year's turnover of $496 million, due in part to soaring product prices but also to an expansion of its product range.
The $40 million operating profit, before tax and rebates, was also well up on last year's $16.3 million.
Shareholders will receive a rebate of $27.04 per tonne of fertiliser sold during the year in the form of a $15.10-a-tonne rebate and eight $1 fully imputed bonus shares.
Last year, Ravensdown returned $24.9 million to shareholders in the form of $16.3 million in cash and $8.6 million in bonus shares.
It was a strong year for the company, driven by tight management, a wider product range and contributions from February's merger with Western Australian company United Farmers Co-operative.
Ravensdown sold 1.45 million tonnes of fertiliser in the year, with New Zealand sales slightly ahead of the 1.354 million tonnes sold the previous year.
The latest figure includes sales to Western Australian farmers from February to the end of May.
In addition, it reported record sales of 650,000 tonnes of lime.
Ravensdown chief executive Rodney Green said in an interview that capital requirements had increased due to a doubling in fertiliser product prices, but this had been managed by keeping inventory and debt levels in check.
Those higher prices prompted the company to keep more money in the business to strengthen the balance sheet and secure lending lines.
Mr Green expected next year to be positive, driven by the strength of the dairy and arable industries, but he also hoped the sheep and beef sectors may have stronger years.
An unknown was China's looming review of a tax imposed on exports of nitrogen and phosphate.
Mr Green said the tax was imposed to secure China's own fertiliser stocks but was to be reviewed in September.
If lifted, world fertiliser stocks would increase, which should force prices to fall.
If it remained, prices were likely to stay high.
Chairman Bill McLeod said in addition to the rebate farmers had benefited to the tune of $15 million from the company absorbing rising fertiliser prices and $5 million from loyalty rewards.
Sales of its nitrogen inhibitor Eco-n nearly doubled last year, and the company was now the third largest supplier of agrochemical and animal health products, with sales of its 38 products up 30% compared with a year earlier.
Ravensdown was also the largest ground spreader in the country.
