Company Newt NEW ZEALAND BREWERIES

Press, Volume XCVII, Issue 28657, 6 August 1958, Page 17

Company Newt NEW ZEALAND BREWERIES

Profit Rises

(New Zealand Press Association) WELLINGTON, August 5. Consolidated net earnings of New Zealand Breweries, Ltd, on trading for the year to March 31 were up £6802 at £333,263, after depreciation higher by £222.628 at £700,148 and taxation provision higher by £68,281 at £668.056. The claimed net profit of the group, however, becomes £405,947 by the addition of £72,684 overprovided for taxation in previous years. After deducting outside shareholders’ share, the net profit attributable to the parent company is £396,898 against £313,593 before.

Gross profit from manufacturing and trading, and receipts, from rents were £287,723 higher at £2,311,575. With interest from investments and dividends from other companies the total income was £2,418,089, an increase of £275,129. Marketing expenses were lower by £41,526, but with the higher taxation and depreciation allowances total expenses were up £268,327 at £2,084,826. The steady 84 per cent, dividend requires £203,288 (£192,288 before), which the profit clears by £93,610. Insurance reserve gets unchanged £5OOO, general reserve an unchanged £25,000, debenture redemption an unchanged £50.000, and deferred maintenance reserve £20,000 —an increase of £lO,OOO. Issued capital is unchanged at £2,274,015 and capital reserves nave been increased from £1,166,239 to £1,829,461 by the disposal of certain assets, which raised the assets realisation reserve by £69,195 to £429,987.

Total revenue reserves and, undistributed profits are £1,889’430. compared with £1,771,039 previously. Debentures and mortgages total £1,909,666 (£1,801,437 before). Total fixed assets are £4,581,328 (£4,401,247) and investments £2,484,976 (£2,045,901). Current assets at £2,372,443 exceed current liabilities by £912,626. The accounts of the parent company show a net profit after tax and depreciation of £306,740, an increase of £24,541. The directors, explaining the over-provision of taxation, say that in the years following 1951 additional assessments were made by the Commissioner of Taxes in regard to classification of new plant not in use and the capitalisation of certain expenses previously written off to revenue.

The directors made full provision for these claims, but discussions having now been completed on a satisfactory basis, an amount of £71,926 being overprovided has been brought back into the appropriation account. They add that £91,429 has been retained as a current tax contingency. 1