Nor West News : October 20th 2011
www.nor-westnews.co.nz 15 NOR-WEST NEWS, OCTOBER 20, 2011 www.cydectin.co.nz INDUSTRIES LTD We have a large range of nails and staples from panel pins to bridge spikes, sliced point to diamond point staples hot dip galvanized in our factory or 316 stainless Our congratulations to Farmlands on the opening of their Helensville store Ph: 03 389 4769 Email: email@example.com Farmlands' annual results show healthy green shoots' Good result: New stores like the one in Helensville have seen Farmlands move ever closer to its target of having 50 stores nationwide by the end of 2012. Green shoots of confidence and prosperity are apparent in New Zealand s rural sector, despite ongoing economic challenges around the globe. Peter Ellis, chief executive of rural retailing co-operative Farmlands Trading Society, says the last 12 months has seen confi- dence increase for most agricult- ural producers. This time last year I was hope- ful that, with the onset of spring and greater stability in the New Zealand economy, confidence would return to the agricultural sector. I m pleased to confirm that there is cautious optimism out there, and this optimism is reflected in our annual results. In the last financial year Farmlands experienced impress- ive growth, delivering some record performances: Annual turnover increased by 22 percent ($123 million) to $683m Pre-tax profits before loyalty rebates increased by 63 percent ($2.2m) to $5.8m Rebates to members increased by 23 percent ($8.1m) to $44.2m Shareholder numbers increased by 5 percent (1300) to 27,000 Year-end loyalty rebates increased by 65 percent ($2.1m) to $5.3m. Mr Ellis says underpinning these figures was growth in Farmlands retail business of 25 percent, or 19 percent on a same store basis, after removing the impact of seven new store locations opened in the last two years. Also included in these results is our rapidly growing Skeltons horticulture offering, which is being leveraged across the Farmlands platform in all the major horticulture growing areas in the North Island. We now have nearly 20 Skeltons technical advisers working in the field, to support our shareholders. Mr Ellis is pragmatic about the challenges faced by Farmlands, farmers and others in the rural sector, so in a precautionary move has made provision for bad and doubtful debts. There is also an increasing focus on driving efficiencies into the processes and systems that support Farmlands business activities. We believe that is vital to sup- port the sustainability of the busi- ness in a rural merchandise mar- ket that will continue to consol- idate, resulting in a smaller number of larger players. Farmlands has plans in place to become a larger player itself, with three more stores set to open in the next six months, taking the total number of Farmlands outlets to 47. We have just announced a new store will open in Inglewood in Taranaki next January, so after Helensville, Huntly and Ingle- wood are up and running there are only three more locations in our pipeline to complete our tar- get of 50 stores by the end of 2012 -- and thus deliver geographic coverage of the North Island. Farmlands board chairman Lachie Johnstone is heartened by the trading year s robust results. While there is usually some vari- ation between quarterly reporting periods, this year each quarter tracked in line with expectation or better, he says. Mr Johnstone says a long term strategic approach has been criti- cal to Farmlands success. A little over three years ago we set some targets. We believed that the sector faced further consoli- dation, and if we were to ignore the opportunity to take part in this activity, Farmlands risked becoming irrelevant. It had the benefit of a structure and plat- form that could enable it to become the market leader it is today. Along with planning at a stra- tegic level, both Mr Johnstone and Mr Ellis attribute much of Farmlands success to the people at the grassroots level -- the 500 plus staff who deliver the Farmlands promises of value and service to shareholders on a daily basis. Mr Ellis says the Farmlands team represents an important part of the organisation s continu- ous improvement strategy, and are pivotal in supporting the recovery of the country s rural sec- tor. Despite continuing turmoil in many of the economies in the Northern Hemisphere, I hope that the green shoots of increasing con- fidence and prosperity will con- tinue to develop across the New Zealand primary sector, and at Farmlands we are looking forward to a verdant future.
October 13th 2011
October 27th 2011