GROWMARK sales up 4% in FY2017

GROWMARK announced its audited financial results for fiscal year 2017, which ended August 31, 2017. GROWMARK reported $7.3 billion in sales, up from $7.0 billion in 2016. Pretax income of $91 million is down from $116 million in 2016.

“The fiscal year was not without its challenges, with economic conditions putting continued pressure on farm net incomes,” said GROWMARK CEO Jim Spradlin. “Warm winter weather lowered demand for home heat, and the challenges of Hurricane Harvey on the energy supply chain impacted energy results. Crop Nutrients endured a devaluation of nitrogen products during the peak spring season. Crop Protection and Seed had record or near record results. Retail Supplies and Grain had improved operations year-over-year.”

Collective efforts resulted in estimated patronage refunds of $59 million, distributed in a combination of cash and stock, followed by stock redemption. Spradlin noted GROWMARK’s leadership among cooperatives in delivering cash returns to its members and maintaining outstanding stock equity in current status. “Over the past 10 years, GROWMARK has distributed $976 million in patronage earnings to members and $815 million in cash,” he said.

Operational highlights for the company’s business units include:

•    The Crop Protection Division recorded record chemical sales. Nitrogen stabilizer and adjuvant sales were up substantially compared to 2016.
•    The Crop Nutrients Division had record sales volumes led by best-in-history shipments of phosphate and potash. This represented record sales volume in six of the last seven years.
•    Overall System seed acres remained relatively flat with an uptick in soybean sales, while corn sales were down slightly compared to 2016.
•    The Energy Division’s sales volumes were up compared to 2016 and the third highest on record, led by increases in distillates and propane.
•    Retail Grain Units reported record-high bushel volume and improved earnings compared to 2016.