Ballance Agri-Nutrients delivers robust shareholder return, reinstates rebate and returns to profit
- Revenue increased 17.7 per cent to $1.14 billion before rebate
- Nutrient volumes increased by five per cent
- Underlying net operating profit before rebate and tax increased 126 per cent to $86.7 million, before asset impairment and site closure costs
- Total shareholder return (TSR) of 14.3 per cent, exceeding target of 10 per cent
- $18.2 million shareholder rebate averaging $17.55 per eligible tonne, representing a 6.5 per cent return on quota shareholding.
Ballance has delivered a positive FY26 result, with underlying net operating profit before rebate, tax and extraordinary costs increasing 126 per cent to $86.7 million, supported by stronger nutrient demand, cost control and improved trading performance.
The net profit before rebate and tax of $52.8 million incorporated $33.9 million in one-off asset impairment and site closure expenses, primarily associated with the cessation of manufacturing at Mount Maunganui.
The performance resulted in a total shareholder return of 14.3 per cent which enabled the co-operative to reinstate a shareholder rebate.
Ballance Chair Duncan Coull said the result was driven by the progress the co-operative had made in resetting the business for the future, while continuing to deliver value for shareholders.
“It’s pleasing to be in a position to reinstate returns through a rebate after three years. More broadly, this year’s result shows the value of balancing direct returns to shareholders with retaining strength in the co-operative so we can continue to invest for the future.”
Ballance ended the year with total equity of $510.8 million. Loans and borrowings increased by $39 million during FY26, largely reflecting higher year-end inventory values as the co-operative ensured nutrient availability for spring supply, but remain $108 million below their 2023 peak.
Ballance is positioned to reduce borrowings through FY27 as inventory values normalise, while continuing its focus on reducing core debt.
Chief Executive Kelvin Wickham said the year had also demonstrated the value of the co-operative model during a period of significant global supply pressure.
"Geopolitical events continue to create uncertainty across global nutrient, energy and shipping markets. As a co-operative, our job is to perform financially, and to do everything we can to secure supply and have cost effective nutrients available when and where our farmers and growers need them."
“That means taking a longer-term view and balancing shareholder returns with investment in supply security, local manufacturing, our distribution network and the services our customers rely on."
“During the year, we maintained flexibility in our global sourcing, secured gas for Kapuni through to 31 December 2026 and continued to firm up orders to support spring demand."
“Reliable nutrient supply is fundamental to New Zealand farming. While there’s no doubt that global uncertainty will continue, we are confident in the strength of the business and our ability to respond."
“We enter FY27 focused on what matters most to our farmers - reliable supply, competitive value, strong on-farm support and a co-operative positioned to deliver for them over the long term.
For more information please contact: Hannah Mackay, Hannah.mackay@ballance.co.nz, 027 220 8276
