Thursday, 29 August 2024 07:55

Lower sales hit revenue, profit

Written by  Staff Reporters
Ballance chair Duncan Coull Ballance chair Duncan Coull

Lower sales affected fertiliser co-operative Ballance's revenue and gross profit for the last financial year.

The co-op's revenue slipped from $1.2 billion last year to $929m for year ended May 31, 2024. Profit before tax also slumped, from $46.5m last year to $17.2m. The drop in sales reflected lower commodity prices and decreased sales volumes to 1.16m tonnes from continuing operations, Ballance says.

However, Ballance finished the financial year with a closing inventory of 281 kiloton (281 million kg), 37% lower than the previous year.

The lower working capital and sale of SealesWinslow to Farmlands enabled $69m reduction in debt. The co-op also spent $69m in capital expenditure on co-op assets.

The Ballance board decided not to pay any rebate for the second consecutive year.

Ballance chair Duncan Coull says that facing another year of headwinds for the co-operative and its shareholders, Ballance prioritised debt reduction and passing on price and cost savings to customers through the year.

"We moved a number of times to provide affordable nutrients to our shareholders, absorbing commodity price effects internally in order to do so," explains Coull.

In his first year as Ballance chief executive, Kelvin Wickham says key priorities were improving operational efficiency while maintaining a strong focus on health and safety.

"We continued to invest in our assets with $69 million of capital expenditure this year towards plant maintenance and upgrades to improve efficiency. Alongside continued investment in health and safety, this meant there wasn't a lot left over," says Wickham.

"We also had a focus on working capital and reduced inventory by 165kt, down 37% from the prior year."

More like this

Maintaining milk flows to pay the bills

As spring calving farmers around the country enter in the final stage of lactation, the incentive to keep the milk flowing is certainly there. A strong milk price and kind first half of the season has left cows in good nick and milking well.

Featured

Farmers urged not to be complacent about TB

New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.

Editorial: Making wool great again

OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.

National

Machinery & Products

Farmer-led group buys Novag

While the name and technology remain unchanged and new machines will continue to carry the Novag name, all the assets,…

Buhler name to go

Shareholders at a special meeting have approved a proposed deal that will see Buhler Industries, the publicly traded Versatile and…

» Latest Print Issues Online

The Hound

Make it 1000%!

OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of…

Own goal

OPINION: The irony of President Trump’s tariff obsession is that the worst damage may be done to his own people.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter