Ravensdown Fertiliser Cooperative, which supplies close to half the country's agricultural fertiliser, racked up more than $1 billion in sales in its latest financial year, even as it absorbed volatile international urea prices that kept its margins thin.
Operating profit was $51.8 million in the 12 months ended May 31, down from a record $71.6 million a year earlier, the Christchurch-based cooperative said in a statement.
That came as revenue climbed to $1.07 billion from $933.2 million a year earlier.
The cooperative has to balance bottom line profit to be distributed at the end of the year through rebates and share issues and what it charges for fertiliser, as its shareholders are also its customers.
Chief executive Rodney Green said the reason behind the fall in operating profit came from Ravensdown holding its prices as it contended with international urea prices that fluctuated by as much as $US100 a tonne.
For nine months of the financial year, the cooperative held prices at a constant $798 per tonne.
NZN