The fertiliser co-operative yesterday reported a $36 million profit before tax and rebate for the year to May 31, of which $32 million would be returned to shareholders through a $15.10 a tonne cash rebate, the same as last year, and 12 bonus shares, four more than last year.
Chief executive Rodney Green described the year under review as "horrible", but one in which the company was able to help farmers handle rocketing fertiliser prices, and still retain cash, maintain its rebate and strengthen its balance sheet.
Chairman Bill McLeod described the result as satisfactory, despite total industry fertiliser sales falling 30%, due to low dairy and arable returns and record international raw material prices.
"In New Zealand we buffered our shareholders from the highest prices by holding prices for as long as possible and then reducing them quickly, to give farmers pricing relief," Mr McLeod said.
In February, Ravensdown sold fertiliser below cost, by selling some of its excess foreign exchange, enabling it to quit its higher-priced stock faster and start selling lower priced product.
Ravensdown sold just over one million tonnes compared to 1.45 million tonnes the previous year, a record performance for the company.
The result also included the first full year's trading from its West Australia business and its recent foray in to Queensland, and Mr Green said in an interview, that even though those figures had not been split out, the contribution from the investment exceeded expectations.
Operating revenue for the year under review was $892 million, compared to $672 for the previous year, reflecting the higher fertiliser prices, while operating cash flow improved from a $109 million deficit in the 2007-08 year to a $21 million deficit for 2008-09.
Mr Green said this reflected the high-priced stock the company had to carry. In the last six to seven months Ravensdown had reduced stock by about $200 million.
Fertiliser prices had returned to 2007 levels and Mr Green said that should be reflected in stronger figures this year.
Looking ahead, Mr Green said fertiliser orders from sheep and beef farmers were about three times that of last year and the company has developed a new sulphur enriched superphosphate product especially for the sector, which would sell for about $100 a tonne less than traditional superphosphate.
Orders from dairy farmers were expected to come later in the season, as their cashflow improved, while in West Australia, June had been busy and indications from Queensland were that interest in Ravensdown from sugar cane growers was increasing.
