Feriliser giant Ballance has turned around a horrible year to May 31 to record a $21 million trading profit.
The result reverses a $6 million loss the previous year, when the company was forced to bank a $36.7 million write-down on inventory.
Ballance chairman David Graham said the improved performance was based on a 5% lift in sales to 1.2 million tonnes, which improved equity from 50% to 65%, while debt reduced from $221.6 million to $91.5 million.
Mr Graham said in a statement the result was "satisfying", adding Ballance had learnt from the previous year, moved to protect shareholders from soaring fertiliser prices and become more cost-efficient.
In the previous financial year Ballance was caught with large inventory which sold at low prices, while it restocked at higher values.
"We learned our lessons well in the previous year, worked our way through various issues and are now a lot smarter and more cost-efficient."
New Zealand fertiliser prices were now more competitive than anywhere overseas.
Chief executive Larry Bilodeau said in an interview new procedures introduced to manage inventory, sales and shipping were already paying dividends with improved equity.
He had expected that would have taken two years to achieve.
Ballance will distribute $17.14 a tonne to shareholders, made up of a rebate of $15 a tonne and the balance as an imputed dividend.
Last year it did not pay a rebate or dividend.
Mr Bilodeau said the result was despite summer drought in parts of the country and he said staff worked closely with those farmers to get their farms back to full production when drought broke, including offering deferred payment terms.
He said there were signs fertiliser use would rise, but he expected total national sales to slowly increase to between 2.7 million and 3.0 million tonnes, well short of record use of 3.5 million tonnes five years ago.
