Growmark reports record results for fiscal year

Chicago-Growmark reported record unaudited estimated results for the fiscal year ending Aug. 31, 2008. Both net income and sales were all-time records. Net income is estimated at $312 million on sales of $6.3 million. “The results from operations include our traditional wholesales divisions of seed, plant food, crop protection, energy and facility planning,” said Growmark Vice President of Finance Jeff Solberg. “Growmark sales are now 20 percent retail with operations of Growmark FS and Seedway, both in the Northeast; AgVantage, New Century and Star Energy in Iowa; FS Partners in Ontario; and Illini FS.” More than $121 million in patronage refunds will be returned to Growmark member cooperatives. Plant food product prices were the highest on record. High corn and soybean prices supported strong application rates, and the plant food division posted its second highest income ever. “Price risk management has emerged as a key component of managing this business,” said Solberg. “Our objective is to provide the ‘best in class’ market information and firm price recommendations.” Growmark said its market information and price recommendations provide guidance to FS member cooperatives on plant food purchases. Growmark said it had a 20 percent sales increase and record income in 2008 from its crop protection division. Adjuvant sales improved 25 percent, thanks in part to the launch of an expanded FS product line. The seed division also saw significant growth, with sales topping $180 million and gross income improving 15 percent. System-supported seed brands were placed on an additional 250,000 acres in 2008. Growmark FS, the retail subsidiary in the Northeast, had record sales and income. Growmark cited improved efficiency and acquisition opportunities as contributing to higher profitability. And despite the flooding in the Midwest, Growmark said its Iowa retail units (AgVantage, New Century, and Star Energy) reported strong profitability. In addition, Illini FS, the retail division of Growmark, will pay patronage again this year, 50 percent in cash and 50 percent in stock.