Rural supply co-op racks up boom year

The rural supply co-op has had a boom year. Sales rose from $270 million to $305 million and pre-tax profit was up from $3.6 million to $4 million for the year to June 30.

Chief executive John Newland said the result followed three years of steady improvement, with sales growth expected to exceed 10 per cent this year.

"The first quarter has been particularly strong, despite the poor outlook for the pipfruit sector," he said. "This has been helped by an exceptional spring."

Half of the profit, $2 million, was paid out last week as a bonus rebate to Farmlands' record high membership of 18,500. Last year another 1200 shareholders joined.

Newland said the profile of Farmlands continued to benefit from acquisition activity in the rural retail sector.

"When there is uncertainty in the marketplace, people look for confidence and security because they want to do business with companies they can rely on."

The company said performance was strong across all three areas of business: retail, Farmacard and fertiliser.

Retail sales were up from $122 million to $130 million, with spending on fencing up 10 per cent at $19 million.

Plans for a new store opening next month at Pukekohe mark the company's first move into the Auckland market; while store-in-store concept PremierPETZ exceeded $1 million in sales.

"The level of off-street business, sort of non-farming business, is increasing all the time," Newland said.

Farmlands' annual meeting will be on November 1 at Palmerston North.