Commercial Rothmans makes good start to year

Press, 19 October 1977, Page 26

Commercial Rothmans makes good start to year

PA Wellington! | The current year started! [well for Rothmans Industries! iLtd, the chairman (Mr K- D.f I Rutland) says in his annuall review. The company’s main wine| and tobacco subsidiaries; were more than maintaining I business, and new projects, j diversification, and associations were continuing to increase the marketing and learnings strength of the (group, he says. In the year to June 30 the company increased exports of cigarettes by more than 70 per cent, and other tobacco products more than 60 per cent. The group increased net profit 19.7 per cent or $634,971, to $3,862,953. “The combination of inflation and profit control I under Category A ensured; that it was impossible to , finance even static stock : levels without recourse to borrowed money,” Mr Rutland says. : The subsidiary, Corbans Wines, Ltd, expanded both total sales quantities and ( values during the year, but the turnover was limited by stock-availability, particu-! larly in table wines. Since balance-date sales I had been ahead of last year’s levels. The company had nego- i bated for Ballins Industries, : Ltd, and L. D. Nathan and ; Company, Ltd, to take an

(interest in Corbans. I To ensure future supplies (of classical grape varieties iinore than 200 acres have been bought in Tolaga Bay, (some of which has already 'been planted. I As announced the annual! ! dividend rate had been increased from 14 per cent to 114.5 per cent (7.25 c a share) requiring $1,597,892 compared with $1,542,792 previously. Included in the latest figures were equity profits $10,890 higher at $33,188. “It was disappointing that the company had to increase its borrowings because the inadequacy of permitted selling prices prevented the generation of sufficient profit to cover the effects of inflation. The profit was after tax $ 9 3 0 , 1 2 f higher at $2,746,617. The company also paid excise duty of $67,755,722 compared with $57,415,262. Depreciation was $174,042 higher at $1,378,348. In addition to the trading profit the group made an extraordinary profit of $887,135. despite writing off its $98,910 shareholding in ;Securitibank. In 1976, extraordinary profits totalled $70,837. The earning rate on capi-| tai (steady at $11,019,951) is up from 29.3 per cent to 35.1 per cent, and that on shareholders’ funds improved from 15.7 per cent to

15.8 per cent. Shareholders’ funds moved up from $22,695,632 to $26,277,299. Term liabilities were down from $6,594,210 to ! $5,569,824.