Big Profit Lift By Gen. Foods

Press, Volume CIV, Issue 30808, 21 July 1965, Page 8

Big Profit Lift By Gen. Foods

(New Zealand Press Association) AUCKLAND, July 20. General Foods Corporation (N.Z.), Ltd., Auckland-based ice-cream and foods group, increased consolidated net profit by about £115,000, or 43.4 per cent, to £380,000 in the year to April 30, following a 36.3 per cent increase in turn-over.

The profit figure is subject to audit. Group sales amounted to a record £7,250,000—an increase Of £1,930,000. Result is after providing about £116,000 more for taxation at £365,000. Final dividend is 6 per cent, which will also be paid on the shares issued in the one-for-five bonus issue. It follows an interim dividend of 5 per cent. The total is equivalent to 10 1-6 per cent on present capital and 12 1-5 per cent on old capital. It compares with 11 per cent paid last year. At the time of the bonus issue announcement directors forecast that 10 per cent would be paid for the current year. Total dividend requirement is £195,950, against £145,867 last year. It absorbs - 51.6 per cent of tax-paid profits. Profit represents an earning rate of 19.8 per cent on increased capital, equivalent to 23.8 per cent before the bonus issue, compared with 20 per cent last year. Capital Increase During the year capital, all ordinary, was increased from £1,350,219 to £1,927,360 In the Crystal Ice take-over and the bonus issue. In their preliminary report directors say that a pleasing feature is the increasing contribution made- by divisions other than the older-estab-lished ice cream and frozen food sections. Refrigerated Freight Lines,

Ltd., the transport subsidiary, is now operative throughout the country. So is Shop Frig. Sales, Ltd., a subsidiary specialising in commercial refrigeration. The three cone manufacturing companies made a notable contribution to the results, directors say. Export sales, mainly to South Pacific islands, exceeded £lOO,OOO. Much of the export trade is in cake and similar lines produced by A. W. Irvine and Sons, Ltd., which has also launched a very successful frozen pie business, directors add.

Final dividend is payable on September 24, shares becoming ex dividend on September 10.