Rural supplies and services co-operative Farmlands said its operating earnings dropped in the June year due to "challenging" on farm conditions, particularly in spring last year, and that it would not pay a bonus rebate.
Chairman Lachie Johnstone said the June year operating profit of $8.4 million, which fell from $12.2m last year, was a positive result for its shareholders against the backdrop of a subdued market.
"Farming uncertainty has dominated short-term decision-making on farms across the country," Johnstone said in a statement.
"This has inevitably had an influence on our performance," he said.
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"However, our 2019 result represents a further step along the path of building resilience
in our business."
Revenue increased by 3.2 per cent ot $1.1 billion.
Farmlands would not pay an additional bonus rebate to shareholders in 2019 as the co-op navigated its way through its "Braveheart" change programme.
"The board believes the decision not to pay a bonus rebate this year is prudent in light of the significant cash commitment to the Braveheart project and its ongoing impact on the business' balance sheet and cash flow, compounded by sector uncertainty," he said.
"Retaining cash at this time supports managing the co-operative's seasonal liquidity requirements as well as funding the completion of the Braveheart programme."
Johnstone will step down as chair at this month's annual meeting. He will be replaced by Silver Fern Farms co-chair, Rob Hewett.
Farmlands, which has 70,000 shareholders, merged with South Island rural supplies co-op CRT in 2013 to take on Fonterra's retain chain, RD1, now Farmsource.