State farmer posts record results
State farmer Pamu has delivered its strongest operating result on record.
Wickham says strong farmer confidence in dairy, sheep and beef and horticulture sectors led to a 5% increase in nutrient sales.
At the same time, the co-op kept costs under control.
For the first time in three years, the farmerowned co-op announced a rebate totalling $18.2 million, averaging $17.55/ eligible tonne.
The cash rebate is only available to fully shared-up farmer shareholders. For partially shared-up farmers, the rebate will be in the form of shares to build up their stake.
Wickham says earlier this year a farmer roadshow was held to discuss shareholder returns and how Ballance needs to be a good custodian of farmers’ money.
A total shareholder return (TSR) target of 10% was set.
Ballance reported a TSR of 14.3% for the financial year. The rebate represented a 6.5% return on quota shareholding.
Wickham says the co-op has also reinvested in the business to make it more future proof. These investments include a digital upgrade, new service centres in Timaru and Kaikohe and upgrades to its Bluff site where its manufactures super phosphate.
Revenue for the 2026 year increased 17.7% to $1.14 billion. Underlying net operating profit before rebate and tax increased 126% to $86.7 million, before asset impairment and site closure costs.
Wickham said the year had also demonstrated the value of the co-operative model during a period of significant global supply pressure.
“Geopolitical events continue to create uncertainty across global nutrient, energy and shipping markets.
“As a co-operative, our job is to perform financially, and to do everything we can to secure supply and have cost-effective nutrients available when and where our farmers and growers need them.
“That means taking a longer-term view and balancing shareholder returns with investment in supply security, local manufacturing, our distribution network and the services our customers rely on.”
During the year, Ballance maintained flexibility in its global sourcing, secured gas for Kapuni through to 31 December 2026 and continued to firm up orders to support spring demand.
“Reliable nutrient supply is fundamental to New Zealand farming,” says Wickham.
“While there’s no doubt that global uncertainty will continue, we are confident in the strength of the business and our ability to respond.
“We enter FY27 focused on what matters most to our farmers - reliable supply, competitive value, strong on-farm support and a co-operative positioned to deliver for them over the long term.”
Ballance chair Duncan Coull said the result was driven by the progress the co-operative had made in resetting the business for the future, while continuing to deliver value for shareholders.
“It’s pleasing to be in a position to reinstate returns through a rebate after three years. More broadly, this year’s result shows the value of balancing direct returns to shareholders with retaining strength in the co-operative so we can continue to invest for the future.”
Ballance ended the year with total equity of $510.8 million. Loans and borrowings increased by $39 million during FY26, largely reflecting higher year-end inventory values as the co-operative ensured nutrient availability for spring supply, but remain $108 million below their 2023 peak.
The co-op is positioned to reduce borrowings through FY27 as inventory values normalise, while continuing its focus on reducing core debt.
