Farmlands Co-operative Announces $8.1m NPBTR

Rural service and supplies co-operative Farmlands has today announced an $8.1 million Net Profit Before Tax and Rebates for the 2020/21 financial year.

The result comes on the back of $2.7 billion in turnover and $1.1 billion in revenue. Farmlands’ more than 75,000 shareholders nationwide received $94.2 million in monthly rebates, discounts and loyalty reward redemptions over the course of the year.

COVID-19 again played a part in a result Chair Rob Hewett called “a pass mark and little more” and paid tribute to the hard work of staff across a challenging year.

“Our co-operative generally reacted well to supply chain issues caused by COVID-19 and managed stocks to ensure availability when the products were needed. We strive to continue to do this in these unprecedented times,” Mr Hewett said.

“The Board has been pleased with the way the business has responded under COVID-19. In particular, I want to acknowledge the frontline staff that continue to go above and beyond to add value for our customers.”

Farmlands Chief Operating Officer Kevin Cooney, who has Acting Chief Executive during the latter part of the financial year, said the co-operative was now seeing the benefits of its 3-year long business transformation programme. The programme, nicknamed Braveheart, has built a world-leading technology platform that will serve its customer base for years to come.

“Adapting any business to working successfully on a new company-wide system is a major challenge. The system itself is only the first step,” Mr Cooney said. “While our change process has been wide-reaching and challenging, it’s also been necessary to remain relevant, particularly as our sector also adapts to significant change.”

Farmlands’ new Chief Executive Officer, Tanya Houghton said the result provided the impetus for a stronger performance in the year ahead.

“There have been plenty of exciting new innovations over the past year. We have a new online shop and our e-commerce platform has come a long way in a short space of time. This is vital, especially during lockdowns,” Mrs Houghton said.

“We have built our plan for this year around three things: safe and engaged people, unbeatable customer experience that earns trusted partner status with our customers, and delivering our budget. Farmlands has a committed team that want to be bring more benefits direct to those that choose us to be their preferred provider.”

Mr Hewett said COVID-19 will continue to disrupt business for the foreseeable future. To protect against unforeseen downturns in business, the Board of Directors had decided not to distribute a Bonus Rebate this year. He is confident the Bonus Rebate will return as the co-operative takes shape under new leadership.

“Next year, our co-operative turns sixty. It is a timely reminder that we have served, supplied and supported generations of Kiwi farmers and growers and their businesses. We were created to disrupt, compete and challenge. Our ambition is to continue to re-invent, to be relevant and to help our customers succeed.”

© Scoop Media