Wattie confident of Waitaki

Press, 17 June 1982, Page 22

Wattie confident of Waitaki

PA Auckland Wattie Industries. Lid. is confident that despite all the problems facing the New Zealand meat processing industry. it will remain the country's major export industry and foreign exchange earner, the company’s chairman (Mr W. T. Mornss) says in his interim review.

He says Watties' purchase of a 24.9 per cent stake in Waitaki N.Z. Refrigerating. Ltd. took Watties overnight to the-forefront of the meat export industry.

The purchase is in line with Watties’ objective of expanding in food processing with the emphasis on export marketing. He says there were several good reasons why Watties chose now- to become a substantial investor in the meat industry.

“We are confident, despite all the problems-and difficulties it is facing, that the’New Zealand, meat processing industry is in good heart and that, in the longer term, it will continue to be New Zealand's major export industry and foreign exchange earner.

“Second, as New Zealand's biggest processor and exporter of a very wide range of canned, frozen, and dehydrated foods produced from the land and the sea, it is logical for us to extend our interests into meat processing and exporting.

“Third. Watties has a vast amount of technical expertise in food processing, product development, and packaging, and this represents a resource of great potential to Waitaki." He says Watties will establish a close liaison with Waitaki in identifying and exploring areas of mutual in-

terest and activity where the resources of the two companies can be utilised and developed. As reported. Watties earned a 21.4 per cent higher profit of $14,336,000 in the six months to January 31.

Sales rose 15.5 per cent to $257 million and interim dividend has been increased from 10 per cent to 11 per cent.

The profit return on sales improved from 5.2 c in the dollar to 5.3 c.