Friday, March 29, 2024

Ruralco forges ahead with positive results

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Despite the uncertainty of covid and regulatory compliance issues, Ruralco has proven its resilience recording positive financial results for its 2021 fiscal year.
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Ruralco chair Jessie Chan says they are pleased to have successfully come through this year and to have also continued to grow our shareholder base.

Despite the uncertainty of covid and regulatory compliance issues, Ruralco has proven its resilience recording positive financial results for its 2021 fiscal year.

“While it was a year of disruption, Ruralco is more resilient than ever thanks to strong relationships between its businesses, suppliers, both card and retail, its shareholders, staff and board,” Ruralco chair Jessie Chan said at the 58th annual meeting of the co-operative on Thursday.

“It is an ecosystem of businesses, which has served the company well this year.

“While covid and regulatory compliance issues have continued to create challenges for Ruralco and our wider farming community, 2021 has also been one of the best years for commodity prices for arable and dairy with market prices also strong for lamb and beef. 

“Fundamentally it has been a very good year income-wise, but it has been one of the worst in terms of the ability to move forward in a positive and confident manner.”

Ruralco continued to grow its group turnover, recording $245.3 million compared to $241.3m last year.

Gross profit increased to $10.6m from $10.3m in the previous year, and EBITDA remained constant at $1.2m.

Group Equity at the end of the 2021 financial year was $16.9m, up from last year’s $16.7m.

“These issues may still be with us, but they are not holding us back, we have a proven track record of agility and knowledge to keep us moving forward,” she said.

“Adversity does not constrain us in doing business and these challenges have not deterred Ruralco from forging ahead with its planned direction and alignment of its business.”

For the fourth consecutive year, Ruralco will pay its shareholders a bonus rebate thanks to revenue growth and careful management of expenses.

During the past financial year Ruralco increased its shareholders by 2.4%, with account numbers growing by 6% and card suppliers growing by 7.8%.

It has stayed true to its course of increasing market share, while also focusing on efficiencies within the business. 

The co-operative recently signed up its 4000th shareholder, a significant milestone in the co-operative’s 58-year history.

“We are pleased to have successfully come through this year and to have also continued to grow our shareholder base,” she said.

“There is a level of pride and accomplishment that we have been able to do this in some difficult times.”

Group chief executive Rob Sharkie says the co-operative’s differentiation is always its people, its staff, shareholders, suppliers, their families and the farming community.

“We recognise we are all in this together and we are one team,” Sharkie said. 

“We are bold and dare to always do better, we are honest and accountable and we always go the extra mile, especially in tough times.”

In the board elections, Mt Somers farmer Kate Acland was re-elected for a second term to the board, while new elected director Mid Canterbury farmer and independent director Andrew Barlass will fill the position of retiring director Gabrielle Thompson.

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