Building the future: Farmlands delivers earnings growth while investing in long-term shareholder value

FY26 performance snapshot

• Farmlands Group turnover (Farmlands plus joint ventures Fern Energy and Farmlands Flex, which are not consolidated in the financial statements) rose 5.3% to $3.2 billion
• Farmlands gross turnover: up 8.5 percent, to $2.8 billion
• Revenue: $922 million, up 8.8 percent
• Gross profit: $202.9 million, up 9.4 percent
• Operating EBITDA: $35.4 million, up 5.8 percent
• Profit before income tax: $4.5 million, up 118.9 percent
• Net profit after tax: $21.2 million, supported by a deferred tax benefit
• Operating cashflow: $16.2 million, down 37.9 percent

Farmlands Group has today announced it increased operating earnings and more than doubled profit before tax in FY26. It did so in a year of global pressure, investing to make sure its shareholders had the products they needed, when they needed them, and to strengthen New Zealand based manufacturing.

Farmlands strategy is designed to strengthen the co-operative’s balance sheet and operational performance over the long-term while delivering best value through its buying power, providing reliable access to products that farmer growers need, and generating sustainable return for its shareholders.

Farmlands reported operating EBITDA of $35.4 million and profit before income tax of $4.5 million for the year ended 30 June 2026, while continuing to invest in manufacturing, distribution and rural communities. This was achieved while absorbing the first-quarter result and acquisition costs of Donaghys, which means underlying trading was stronger than the reported figures show.

Chief Executive Tanya Houghton said the result demonstrated the value of a consistent, focused approach and continuing to deliver on outcomes that benefit shareholders.

“Geopolitical upheaval and pressure on freight, fuel and fertiliser markets over the year have reinforced the importance of that approach. Planning ahead, managing costs and building a more efficient and resilient supply chain help us protect pricing and access to product for farmers and growers.

“We’ve lifted operating earnings at the same time as investing in the business. That is encouraging progress, with our focus firmly on turning those investments into future sustained earnings and greater value for shareholders.”

Reported net profit after tax was $21.2 million, including a one-off, non-cash deferred tax benefit of $16.7 million. Recognition of the deferred tax asset reflects expectations of sufficient future taxable profits to use it. Houghton said this was a positive signal of progress under the Group's long-term strategy and the confidence of the business and Board in Farmlands’ continuing growth and profitability.

A significant development in the past year was the acquisition of Donaghys in March 2026, expanding Farmlands’ New Zealand-based manufacturing, animal health research and product development capabilities. Alongside SealesWinslow and its wider nutrition business, the acquisition strengthens the co-operative’s ability to develop products for New Zealand farming conditions and creates new sources of value and future earnings.

“Donaghys gives us greater influence over the products we bring to market and their supply, while keeping important expertise and manufacturing capability in New Zealand hands. For shareholders, that means opportunities for greater choice and more resilient supply,” Houghton said.

Acquired late in the financial year, Donaghys contributed a small loss alongside acquisition costs to the FY26 result, reflecting the seasonal timing of its earnings. FY27 will include a full year of ownership.

Farmlands also made progress in expanding its owned brands including growth in customer number for Top Paddock (171 percent) and AgStar (62.9 percent) and developing its energy partnerships and joint ventures. Farmlands FLEX completed its first full year trading, proving demand for the solartech offering with 101 systems sold and 55 sites fully operational.

Alongside these investments, expansion of the Central Distribution network supported more efficient purchasing, stock management and distribution, helping Farmlands manage supply chain pressures.

Operating cashflow decreased to $16.2 million from $26.1 million in FY25, reflecting in part a deliberate investment in inventory to give farmers and growers greater surety of supply during the uncertainty created during the global fuel crisis. Year-end inventory was nearly $20 million higher than the previous year, with approximately $10 million acquired with Donaghys and the balance reflecting a planned stock build.

Farmlands also invested more than $10 million in capital during the year, continuing its commitment to nutrition, where both farmer and lifestyle demand continues to grow.

“Planning ahead and investing in supply gives our shareholders greater confidence that the products they need will be available when they need them,” Houghton said. “That is an important part of protecting everyday value through changing conditions.”

Chair Rob Hewett said the result balanced financial sustainability against investments that ensure the co-operative is ready for what’s ahead.

“Our responsibility is to keep Farmlands delivering clear benefits for the farmers and growers who own it. “That requires discipline in how we run the business today, and where we invest for the future. Across manufacturing, nutrition, animal health, our owned brands, partnerships and joint ventures like fuel, we are building opportunities to create more value in what we do today and at the same time, continue pushing into new areas that reflect the market’s evolving needs and ultimately will secure the co-operative’s long-term performance and enduring relevance."

Hewett highlighted the co-operative's focus on delivering more than just good value and supply certainty to shareholders, but more broadly in investing in rural communities and initiatives that bolster them.

"A strong co-operative looks after its shareholders as well as its balance sheet. The launch of the Rural Support Trust’s ignite platform, giving free mental health and wellbeing support to rural communities, has been a way we have been able to support farmer growers and their families beyond the farm gate."

Looking ahead to FY27, Houghton said Farmlands would continue to focus on improving the profitability and efficiency of its core business and realising the benefits of recent investments.

“We remain confident in our approach and look forward to continuing to deliver on what matters to shareholders: everyday value today, dependable supply and a co-operative with the financial foundations to support their businesses now and into the future,” Houghton said.