General Foods Profit £265,104

Press, Volume CIII, Issue 30535, 2 September 1964, Page 21

General Foods Profit £265,104

(New Zealand Press Association) AUCKLAND, Sept 1. In spite of a por summer season and increased sugar costs, higher sales enabled General Foods Corporation (N.Z.), Ltd., to return a consolidated net profit of £265,104 for the year to April 30—a rise of 9.8 per cent on the previous year.

The result is £23,741 better than in 1962-63 when heavy depreciation was mainly responsible for a decline of 4.3 per cent tn £241,363. In the latest year pre-tax profit exceeded £500,000 for the first time. Sales set another record with a rise of £520,000, or 10.8 per cent, to £5,320,000.

The rise was not quite enough,-however, to maintain the earning rate on higher shareholders’ funds, the rate slipping from 11.4 to 11.1 per cent. The net profit was struck after providing £38,164 more for depredation at £315,289 but £l2BO less for tax at £248,787. As announced, dividend had been maintained at 11 per cent. It takes £6176 more at £145,867 on capital increased by £80,299 by takeovers during the year. Acquisitions were Rex Foods, Ltd., manufacturer of ice cream toppings and flavourings, Associated Cone Manufacturers, Ltd., which has factories in Auckland, Wanganui and Christchurch, and Tip-Top Ice Cream Company (Fiji), Ltd., now wholly owned. Previously a confroiling interest was held in the Fiji company. In addition, the refrige-

rated transport business of E. H. Boyce and Company, Christchurch, was bought.

The directors state that profits of subsidiaries acquired during the year have been included only to the extent of earning since the date of acquisition.

Since the end of the financial year, Crystal Ice Company, Ltd., of Dunedin, and its subsidiaries, Rices . Ice Cream, Ltd., Southland Ice Cream Company, Ltd., and Newjoy Ice Cream, Ltd., have been taken over. This merger made no contribution to the results of the year under review.