Costs Hit Mannings Record Profit

Press, Volume CIX, Issue 32016, 17 June 1969, Page 19

Costs Hit Mannings Record Profit

(New Zealand Press Association) ' HAMILTON, June 16. Mannings (N.Z.), Ltd, Hamilton manufacturer of veterinary products, increased sales in the year to March, but absorption of higher costs held the profit, increase down.

The consolidated net profit was slightly lower than that given in the preliminary statement last month. A record $72,555, it showed a rise of $l3BB or 2 per cent. The company faced increased operating costs, and because of devaluation other costs also rose. However, it was decided to absorb most of these increases. Directors felt that as much help as possible should be given to farmers during a period of depressed prices, the chairman (Mr C. M Scott) says in the annual report.

Recently, the company has obtained export business for some of its products and directors hope this will be increased in future years. One United States company is currently evaluating one of the company’s vaccines. New buildings at Te Rapa should be completed before the end of next month. All activities, except the vaccine laboratories, will be centred there and this will improve facilities for expansion in the next few years. Mr Scott says. The result was struck after providing $287 more for depreciation at $11,672 and 52500 more for tax at $64,000 ; The steady 14 per cent dividend will take $28,000. The earning rate on average shareholders’ funds eased from 18.5 to 16.9 per cent and that on capital improved from 35.6 to 36.3 per cent. Shareholders’ funds were $44,555 higher at $452,525, including capital of $200,000.