NEW ZEALAND BREWERIES

Press, Volume XCIX, Issue 29246, 2 July 1960, Page 16

NEW ZEALAND BREWERIES

Sharp Rise In Profit (New Zealand Press Association) WELLINGTON, July 1. Consolidated net profit of New Zealand Breweries. Ltd., rose £186.059 to a record £533,332 in the year ended March 3L The parent company’s profit rost £298,969 to £411.786. It is reached after depreciation of £686,034 (£663,923 last year) and a taxation of £590,600 (£565,060). ,

The directors’ report states that the profit is most satisfactory and that the consolidated increase is due to the incorporation of the trading results of Hancock and Company, Limited, for the six months from October 1, 1959, to March 31, 1960, and also to the generally improved trading conditions during the year, including the development of larger trading facilities. This year much of the company’s new plants was brought into use and in certain instances higher rates of depreciations on specialised plant and machinery were claimed. The directors have made a reduction in the amount of depreciation in excess of that allowable as a deduction by the Inland Revenue Department. Total depreciations maintained “at a figure which is considered prudent but not excessive.” Gross Profit £2.4tn. Gross profit is £2,389,569 (£2,156,44!5) and expenses £769,042 (£760,519). Dividend provision for the parent company is up to £354,337 from £259,199. Carry forward is £232,196 (£224,747). As announced dividend was raised from 7J per cent, to 8% per cent. The company intends to make cash and bonus issues by capitalisation of portion of the company’s reserves. The directors state that the rate of future dividends depends on future earnings, but in view of the increased capital it is to be expected that the rate of future dividends may be lower than at present. Shareholders' - funds of the parent company are up from £5,858,871 to £8,542,230, and consolidated funds from £6,358,823 to £9,216,055. Parent capital is £4,561,865 (£3,486,023), and reserves £3,980,365 (£2,372,648). Share premium reserve is up from £50,000 to £1,125,842 aS a result of the Hancock takeover and assets revaluation reserve up from £136,617 to £621,682, The assets realisation reserve is £430,007 (£440,846), and debenture redemption reserve £415,000 (£365,000).

Total assets of the parent company are £13,145,161 (£9,991,345) and of .the consolidated companies £14,399,152 (£10,714,711),) mainly due to the "Hancock takeover. Current liabilities of the parent company are £2,566,564 (£2,314,454) and current assets £2,457,257 (£2,660,566).