N.Z. Brew. Sales Up Satisfactorily

Press, Volume CVII, Issue 31407, 28 June 1967, Page 23

N.Z. Brew. Sales Up Satisfactorily

New Zealand Breweries, Ltd., Wellington, increased its sales satisfactorily in the latest year to March 31 and-obtained its share of the growth in trade, says the chairman (Mr M. O. Barnett) in his review for the year.

As announced, group profit rose £172,100, or 12.3 per cent, to £1,578,282 and the total dividend was raised from 11 to 12 per cent.

The dividend requirement Is £80,268 higher at £963,210 and is covered 1.6 times by profit.

The earning rate on average shareholders’ funds improves from 10.3 to 11.0 per cent while the rate on capital, all ordinary, is up from 17.5 to 19.7 per cent. As well as expenditure on hotels and taverns, the company has a considerable planned expenditure on brewing and bottling plant and equipment to meet a growing trade and keep in line with modem methods, says Mr Barnett. Adequate Provision Adequate provisions have been made for deferred items of expenditure. The Licensing Control Commission has imposed a heavy burden of expenditure on the company and subsidiaries but the existence of the building control regulations has checked the substantial cash out-flow needed to carry out the commission's requirements.

A further cut in import licences for spirits and wines will have a serious effect on the wine and spirit firms in which the company is interested and also on the company’s major accommodation hotels. This however, should

i create a greater demand for ' premium beers. Referendum

Mr Barnett, referring to the I proposed referendum on hotel ; liquor hours, says that hotel closing could mean increased I costs in dispensing liquor. : The increase in sales for ' the latest year is divided j about equally between bulk >ahd packaged beer, he adds, t The latest profit is after providing £31,324 less for deI preciation at £863,647 and i £210,176 more for tax at £1,896,284. I The provision for depreciation is 15 per cent in excess j of the amount to be claimed I for tax purposes. Directors , consider the total amount provided to be no more than is ! reasonably necessary.

■ Shareholders’ funds are £680.603 higher at £15,017,064

and include capital steady at £8.026,748. Term liabilities are £219,638 higher at £5,517,062 and fixed assets £701,770 higher at £14,046,336. The rise in value of land and buildings is mainly because of the progress payments on the South Pacific Hotel, Auckland, due to open later this year. Investments are £909,323 higher at £7,647,542, largely because of the acquisition of the 50 per cent interest in Leopard Brewery Ltd.

Current assets are £246,966 higher at £4,363,892 while current liabilities are £957,818 up at £5,523.644.