Wattie dividend raised

Press, 24 October 1978, Page 20

Wattie dividend raised

Wattie Industries, Ltd, has raised its dividend from 14 to 15 per cent, after group net profit rose 3.0 per cent to 512.9 M in the year ended July 31. The chairman (Mr D. F. McLeod) says in the preliminary announcement that ( (sales increased 6.4 per cent [to $280.1M, and that the’ ( profit represents a return of 14.6 c per dollar of sales —] ] slightly below the 4.8 c (earned in the two previous years. I

The return on .assets, which increased 9.7 per cent to $201.4M, declined similarly from 6.8 to 6.4 per cent. The sales included an increase of 16.8 per cent in exports, bringing the total for the year up to $16.3M on a c.i.f. basis. The profit is after providing $5.6M for depreciation and $4.2M for taxation, the trading stock taxation concession was worth SI.SM to the group, Mr McLeod says.

After allowing for dividend on convertible preference shares the proposed ordinary dividend for the year is covered three times by earnings. The final dividend is raided to 8 per cent, making 15 per cent for the year compared with 14 per cent previously. It will be payable on December 15 ex November 29, to be tax-free in shareholders’ hands. The earning rate on ordinary capital is up from 44 per cent to 45.3 per cent. The directors say they regard the result as satisfactory for a year in which consumer demand was not buoyant, with a very competitive market for many products. The increase in assets $6.1 M comprised, S6.BM in cash resources and $4.9M in stocks and debtors.

Last year the group raised its dividend 1.5 per tcent and made a one-for-10 bonus issue after profit rose 14.7 per cent to $12,550,061.