Farm supplies co-operative CRT yesterday reported a record performance in the past financial year, including a 20% increase in revenue to $576 million.
Announcing its annual result for the year ended March 31, chairman Don McFarlane said CRT recorded an operating surplus before rebates of $26.6 million and a trading surplus after rebates of $8 million, a 122% improvement on 2007.
But he warned that while the new financial year had started well, rising costs and supply problems with key agricultural products meant the coming year would be more difficult.
"Fuel and fertiliser price increases were the tip of the iceberg, with a global agricultural boom causing most of the difficulty through competition for supply," he said.
The board will distribute 75% of the $8 million surplus as rebates to shareholders, with $3.6 million in cash and $2.4 million in shares.
Following the distribution to shareholders, CRT would bank an after-tax profit of $2.55 million.
Monthly trading rebates received by shareholders increased 28% to $17.5 million, leaving an annual surplus of $9.1 million.
That included a $1.1 million one-off gain on the disposal of assets, following the sale and lease-back of several stores.
The result signals the benefits of four years of significant growth for the co-operative.
Chief executive Brent Esler said shareholder numbers had grown 24%, revenue rose 60%, shareholder monthly rebates increased 72% and distributed bonus rebates of $17.7 million over the past four years.
Mr Esler said the record performance was also the result of three years of business and geographic expansion throughout the South Island, during which store numbers grew from 23 to 30.
