Rural / Country

Sales put Ravensdown back on track

00:08 am on 8 August 2014

Increased fertiliser sales and shutting down its Australian operations have helped the Ravensdown fertiliser co-operative to get its financial performance back on track.

The farmer owned company has reported record operating cashflows of 185 million dollars for the past year.

It's increased profit before tax and farmer rebates from $28 million to $73 million.

Ravensdown's chairman, John Henderson, said moving out of Australia has freed up capital as well as reducing debt.

"So we reduced our debt about $200 million over the space of a year. Its a huge saving in interest, it's also allowed us to renegotiate our banking arrangements to far more favourable conditions, so there's been some saving there.

"We've done a lot of hard work on customer relationships, on quality and surety of supply, making sure that we don't run out of product, just generally concentrating on the basics."

Ravensdown increased fertiliser sales by 7 percent in the past year and John Henderson said it expected that momentum to continue, with sales for June and July ahead of last year.

He said the co-operative wouldl pay farmers a rebate and bonus share issue totalling more than $37 a tonne. Last year it didn't pay a rebate at all.