That was also after leading prices lower during the year ended May 31, ensuring shareholders were “better off as early as possible on key inputs for their business”, chairman John Henderson and chief executive Greg Campbell said in the annual report.
The $45 a tonne rebate was up on the $41/t paid out the previous year on higher earnings. It still allowed the co-operative to maintain a sustainable financial position short and long term, they said.
Under their accounting rules, co-operatives paid income tax on their after-rebate profit but Ravensdown was helped further by receiving a tax benefit. The total rebate of $49.33 million left a profit of $1.62m from continuing operations and the tax benefit increased that to $2.16m. That was partly offset by a $1.44m loss on discontinued operations.
The latest year was weaker on revenues, earnings, operating cashflows and balance sheet but Ravensdown remained strongly placed.
Revenues were $626.6m, down from $660m, operating EBIT (pre-rebate) was $52.7m, down from $65.4m, bottom-line profit was down from $10m, operating cashflow fell to $60m from $106m and balance date borrowings were $39m compared to an $8m credit balance.
Some of the increased borrowings were there to cover an extra $14m in receivables at year-end because of poor weather pushing some fertiliser sales back from April into May and moving cash collection into this year.
Despite the latest, higher figure borrowings had come down sharply from a high of $248m in 2013 and the company also reduced its debt facility during the year.
Allowing for the rebate amount, Ravensdown had $406m in shareholders’ funds at balance date, making up 73% of the total assets of $553.7m. The rebate was paid in two parts, $20/t in early June and the remaining $25/t in August.
It was the second year an early, interim rebate was paid to put cash into shareholders’ hands.
The revenue figure highlighted the price reductions during the year, as fertiliser sales volumes rose 2% to about 1.2m tonnes. That amount had been broadly consistent over the last five years.
Directors said the operating cashflow of $60m remained strong and sustainable though it was the lowest amount in five years. As well as lower pricing it reflected the weather-related sales delays.
Ravensdown stepped up its capital investment during the year, with a $42m spend on infrastructure and systems.
In his annual review Henderson said stakeholders were demanding greater “smarts” from their co-operative – made up of trusted science, strong relationships, advanced technologies and concern for the environment.
Campbell was optimistic for the future based on the science behind developments in whole farm soil testing, being able to vary rates of fertiliser application by both air and ground spreading, accurate mapping and measuring and work on environmental mitigation and consultancy.
The consultancy service had completed 588 projects during the year, up from 188 the previous year.
Ravensdown’s agri-managers had also made 27,000 farm visits to advise on optimum fertiliser inputs.
