Rural supplies co-operative Farmlands has announced a $14.3 million full-year net loss on the back of a $68.2m drop in revenue for the year ended June 30. The company said the result was exacerbated by a one-off accounting adjustment to previously recognised tax losses of $12.3m.
The result compared to a $679,000 loss last year.
Chief executive Tanya Houghton said the company’s efforts to improve pricing on rural supplies had put an additional $6.9m back in the hands of farmers and growers.
That had been made possible through efficiencies gained from its supply chain transformation, careful inventory management, supplier negotiations and tight operational cost controls.
"Farmlands is becoming a much stronger co-operative than it was two to three years ago because of deliberate decisions we’ve made.
"Other examples of this growing underlying strength are an improved cash position year on year, acquisitions like SealesWinslow and new partnerships such as Fern Energy," she said.
Farmlands improved its operating cashflow by $27m, from negative $5.1m last year to a positive $22m.
Chief executive Rob Hewett said 2024 had been a tough year for everyone, including Farmlands shareholders and the co-operative.
"We’ve seen the conditions you face reflected directly back into the Farmlands business. Many other agriculturally-aligned businesses both in New Zealand and globally are experiencing similar issues post-Covid.
"In times of choppy waters, having a clear plan is crucial. What worked in the past may not be right for the future. Farmlands has spent the past 24 months developing and refining the plan and our team, to ensure the business remains relevant."
