“We know that when our farmers and growers have a tough time, we are likely to feel the impact. It’s been one of those years.
“We recognised this early and adjusted our short-term strategy quickly.”
If the tax adjustments were removed the net loss would have been $2m and slightly below the previous year.
The co-op paid $92m in shareholder rebates, which demonstrates the underlying strength of the business and its ability to support farmers and growers through these tough times, Hewett said.
Farmland chief executive Tanya Houghton said better pricing on rural supplies put an additional $6.9m back in the hands of Kiwi farmers and growers.
“This has been made possible through efficiencies gained from our supply chain transformation, careful inventory management, supplier negotiations and tight operational cost controls.”
Houghton added the co-op was stronger than two to three years ago, with examples of growing underlying strength including an improved cash position year-on-year, acquisitions such as SealesWinslow and new partnerships such as Fern Energy.
Farmlands said it now has significantly improved stock availability, and the co-op’s first range of direct-sourced products sold rapidly at competitive prices and clearance stock exceeded sales expectations, reducing planned write-offs.
A new horticulture hub in Hastings demonstrated Farmlands’ commitment to better serving specific regional horticulture needs, providing tailored support and expertise to local growers.
Hewett said while it has been a challenging year the business strategy was working.
“Farmlands is making the bold moves and developing the innovations that’ll see us boosting the productivity and profitability of Kiwi farmers for at least another 60 years,” he said.
Farmlands: Key numbers
- $2.5b in Turnover
- $740.3m in Revenue
- $20.4m in Operating EBITDA
- $14.3m Net Loss After Tax
- $21.9m in Operating Cashflow
- $92m in Total Shareholder Rebates
- $44.1m in Rural Supplies Rebates
- RNZ
