The company said the result was exacerbated by a one-off accounting adjustment to previously recognised tax losses of $12.3m.
The result compared to a $679,000 loss last year.
Chief executive Tanya Houghton said the company’s efforts to improve pricing on rural supplies had put an additional $6.9m back in the hands of farmers and growers.
That had been made possible through efficiencies gained from its supply chain transformation, careful inventory management, supplier negotiations and tight operational cost controls.
“Farmlands is becoming a much stronger co-operative than it was two to three years ago because of deliberate decisions we’ve made.
“Other examples of this growing underlying strength are an improved cash position year on year, acquisitions like SealesWinslow and new partnerships such as Fern Energy,” she said.
Farmlands improved its operating cashflow by $27m, from negative $5.1m last year to a positive $22m.
Chief executive Rob Hewett said 2024 had been a tough year for everyone, including Farmlands shareholders and the co-operative.
“We’ve seen the conditions you face reflected directly back into the Farmlands business. Many other agriculturally-aligned businesses both in New Zealand and globally are experiencing similar issues post-Covid.
“In times of choppy waters, having a clear plan is crucial. What worked in the past may not be right for the future.
“Farmlands has spent the past 24 months developing and refining the plan and our team, to ensure the business remains relevant,” Mr Hewett said.
Significant progress had been made with many big-ticket items started or completed over the past year, including the purchase of SealesWinslow, the bedding in of Fern Energy — the co-operative’s 50-50 energy partnership with Southfuels and now the biggest provider of fuel in rural NZ — the launch of FarmlandsPRO, and the launch of its Southland regional hub. A regional horticulture hub was also opened in Hawke’s Bay this year, he said. — APL
