D.B. profit falls but pay-out raised

Press, 12 July 1980, Page 18

D.B. profit falls but pay-out raised

The group net profit of Dominion Breweries, Ltd. fell 8.5 per cent to $6,532,796 in the year ended March 31. The profit, which includes the group’s share of earnings in associate companies, compares with last year’s record figure of $7,139,021. The result is after providi.g $4,595,219 for depreciation (last year $4,329,231) and providing $6,617,448 for current and deferred taxation (last year $6,906,232), and this is before the addition of taxadjusted profit of $243,565 from the disposal of assets, and the deduction of taxadjusted exchange losses of $205,830.

A change in accounting policy has been adopted in the recording of unrealisec exchange gains and losses based on increasing overseas and New Zealand practice, such being now amortised over the unexpired term of the company’s off-shore loan commitments. In consequence, the comparable exchange gain for last year has been restated as $198,163. Shareholders’ funds have increased to $118.5 million representing 58.9 per cent, of total assets, the increase having provided as to $7,986 million by revaluation of properties to Government valuation in accordance with previous policy. Sir Henry Kelliher, the chairman, said that sales and net income were adversely affected by a, major brewery shutdown in April 1979, a continuing national decline in beer consumption, and market reaction to the substantially increased sales tax levied on beer and spirits in the June, 1979, Budget. “Notwithstanding current economic conditions the company increased its proportionshare of the New Zealand liquor market and has achieved improved earnings since balance date,” he said. Sir Henry announced that the directors had recommended payment on August 18 (ex July 30) of a final distribution of 10 per cent (sc) on ordinary and preference shares (excluding specified preference shares), of which 5 per cent (2.5 c will be paid as a tax-free distribution from Share Premium Account. In addition, to commemorate the company’s 50th year anniversary the directors recommend payment of a special jubilee distribution of 3 per cent (1.5 c on ordinary and preference shares (excluding specified preference shares) as a supplementary tax-free distribution from Share Premium Account. When added to the interim 7 per cent (3.5 c tax-free share premium distribution paid in December last, total distribution for the year is 20 per cent (10c a share) of which 15 per cent 7.5 c is taxfree in shareholders’ hands. Shareholders who have elected not to receive taxfree distributions will receive a final taxable dividend of 10 per cent together with an additional 3 per cent taxable jubilee dividend.