Ravensdown reports $95m profit in 2021/22

Ravensdown's office in Hornby, Christchurch. Photo / Supplied

Fertiliser co-op Ravensdown has announced an overall group profit of $95 million and an underlying profit of $68m before tax this year.

Chairman, Bruce Wills said it was "one of our best ever results" in a year dominated by volatile pricing and global supply challenges.

Total fertiliser sold was up slightly at 1.22 million tonnes, and revenue was up $210m on last year to $922m.

Willis said this reflected the rising price environment that dominated the year.

"The rapidly rising international prices makes fertiliser hard to budget for our farmers.

"To help them, Ravensdown focused on product margins and yielded an FY22 group margin percentage lower than last year."

Ravensdown Shipping Services provided a $26m boost to the Group's bottom-line performance.

Chief executive Garry Diack said the co-op had positioned its balance sheet for another challenging year in 2023 with $347M of stock in store.

"Our fundamental belief is that this cash is better in use on-farm than in our hands, and our margin-based pricing approach has proven this to be the case this year."

Given this year's performance and next year's challenges, a shareholder rebate of $25 per tonne has been declared, he said.

"The need for a capital buffer for the increasing risk a cooperative structure faces compels a conservative approach to shareholder rebate for 2022."

Rebates are paid to shareholders who bought solid qualifying fertiliser products between 1 June 2021 and 31 May 2022.

This week the Government announced a collaborative $22m programme with Ravensdown to reduce farm emissions and nitrate leaching.

Ravensdown is leading the programme, called N-Vision NZ, and will contribute $11 million cash, with Lincoln University and Plant & Food Research providing research expertise.

"We need to continue investment in technological support to reduce New Zealand's fertiliser footprint," Diack said.

The year at a glance

The year at a glance for 2021-22, with numbers for 2020-21 in brackets.

• Profit from continuing operations before tax, bonus share issue and rebate: $95 million ($52 million).

• Operating cashflow after rebates to shareholders: -$60 million (+$37 million).

• Equity ratios: 64 per cent (81 per cent) before rebate and 62 per cent after rebate (78 per cent).

• Rebate of $25 per tonne to be paid in cash by the end of August for fully paid-up shareholders ($30/t).

• Revenue: $922 million ($712 million).

• $4 million invested in new technology ($4 million) and $6 million supporting R&D ($6 million).