Ravensdown Fertiliser has achieved a pre-tax operating profit of $71.6 million for the financial year ending May 31, up 260% on the previous year.
Directors have announced a $57 million distribution (including imputation credits) to shareholders, compared with $17 million last year, comprising a cash rebate of $15.10 a tonne of fertiliser purchased and a fully imputed bonus share issue of 18 shares a tonne valued at $26.86.
Ravensdown chairman Bill McLeod described it as an "outstanding" result for shareholders, delivered while the company was also building a significant operation in Australia. It was the highest distribution of cash and shares in 14 years.
The foundation of the positive result was the strength of the New Zealand farming sector benefiting for the first time in many years from good commodity prices for meat, wool, dairy and arable produce.
The significant improvement in farming returns led to farmers investing in fertiliser to improve production, he said in a statement.
Total revenue rose 12% to $933 million and sales of fertiliser across the New Zealand and Australian markets rose 14% to 1.492 million tonnes. A significant portion of the Australian supply was manufactured in New Zealand. Total assets grew to $786 million, an increase of $95 million on the previous period.
Ravensdown's New Zealand operations experienced an "extremely challenging" first half, with the significant storms of last spring and then the Canterbury earthquakes. The second half was buoyed by excellent growing conditions and good commodity prices.
The co-operative's business operations in Western Australia and Queensland experienced difficult trading conditions but the financial performance improved with the previous year's $11.2 million loss before tax and rebate being reduced to $1.6 million.
The droughts continued in Western Australia, breaking only after the end of the financial year, while growers in Queensland experienced the worst rainy period many could remember, resulting in a lot of sugar cane not being harvested and little fertiliser being applied.
