Ravensdown 2025 Financial Results Reflect Reshaping Of The Business
After impairments and one-off adjustments, but before tax, the co-operative reported a net loss of $2 million.
Flat year-on-year revenue of $764 million, and volumes up 71,000 tonnes on the previous financial year to 962,000 tonnes, resulted in lower margins.
Garry Diack, Ravensdown CEO, said that the co-operative again worked hard to deliver competitive pricing throughout the year and focussed on keeping prices lower while customers emerge from the economic downturn.
'The co-operative has absorbed increasing international fertiliser prices and rising input costs to delay passing them on to customers, even as our own margins have come under pressure,' said Mr Diack.
'Impairments of $9 million from the closure of manufacturing in Dunedin, the divestment of five lime assets, and the sale of C-Dax are an outcome of our strategy to size the business to meet the market.'
Cautious support of the rejuvenating industry
Bruce Wills, Ravensdown Chair, said the co-operative's underlying performance continued to ensure a stable funding base that saw the balance sheet equity ratio lift to 80%, up 1% on the previous financial year.
The co-operative again reported positive inventory and debt management building on improvements achieved in the previous two years. Inventories at year-end reduced further by $22 million to $128 million with debt reduced by 67% to $26 million.
But Mr Wills said a third year of difficult trading does not allow payment of a shareholder rebate.
'In this environment it has been prudent to continue our conservative approach to capital expenditure and conserve funds.
'Although fair pricing was at the expense of a rebate, the business was able to leverage the strength of its balance sheet to ensure we're well positioned for any market upturn.'
Mr Diack said: 'This autumn, following the fortunes of the dairy sector, we saw the beginning of an upturn in the red meat sector, and expect that to translate to improved volumes in the coming spring.'
While it is anticipated that volumes will increase over the coming year, Ravensdown has also adapted its operating model to better position for the emerging environment.
Product and capacity to meet New Zealand farming systems
Ravensdown's total manufacturing capacity has been adjusted to meet future market volume requirements with the closure of manufacturing in Dunedin earlier this year. The site is now in operation as a port store and continues to serve the region as a key distribution centre.
The 2025 financial year also marked the completion of significant capital works programmes at Ravensdown's two manufacturing sites in Napier and Christchurch, shoring up total manufacturing capability to around 550kmt per annum.
Over the past year, sales of New Zealand-manufactured product increased 17% (382kmt) and the co-operative is anticipating a further lift during the 2026 financial year.
Mr Diack said: 'Superphosphate is still the most consistently affordable means to return phosphorus and sulphur nutrients to New Zealand soil and pastures.
'Ravensdown has remained steadfast in its strategy to shore up sourcing and diversify supply of raw materials that can be manufactured locally to specifications suitable for pastoral farming systems.'
Strategy to deliver products and services
'The co-operative's impairments over this past financial year reflect that we are a business adapting to changing market conditions,' said Mr Diack.
'While the closure of manufacturing in Dunedin has had a significant impact on our financial result this year, ongoing we will realise the benefit of reduced operating and capital maintenance costs.'
In the 12 months to 31 May 2025 Ravensdown has implemented a targeted programme of projects to enhance operational efficiency and support customers to 'do more with less' nutrients.
'Farmers are adapting to modern technology around variable nutrient placement. Our investments in our digital interface are keeping pace with the release of HawkEye Pro, and we continue to invest in technology and innovation through Agnition.'
Looking ahead
Although Ravensdown foresees increased volumes and profitability as the rural economy returns to a more stable period, the outlook for the global economy is more volatile.
The international fertiliser market remains tight and prices are trending upwards.
Mr Diack said: 'To ensure the long-term viability of our shareholders and the wider sector, we will pursue our strategy to maintain security of supply and invest in the local manufacture of superphosphate – which remains the most affordable and most effective choice for New Zealand farmers and growers.'
*Total reported impairments of $10.3 million*
The year at a glance 2024-25: numbers for 2023-24 in brackets
Total revenue: $763.9 million ($756.8 million)
Net profit from continuing operations before impairments and taxation: $8.3 million ($27.4 million)
Net loss from continuing operations after tax: -$5.4 million ($2.8 million profit)
Operating cashflow: $103.2 million ($127.5 million)
Equity ratio: 80.3% (79.4%).
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