Magnum ahead

Press, 22 December 1986, Page 37

Magnum ahead

PA Auckland Magnum Corp, Ltd, had enjoyed a sound six months since balance date and the trading profit to December 31 should be materially ahead of last year’s $10.5 million, the managing director, Mr Bob Matthew, told the annual meeting yesterday. He said the improvement had resulted particularly from three distinct surges in consumer spending: a preJuly Budget spend; the preGST boom; and now a preChristmas surge. These, with some significant market share gains in both liquor and grocery sectors, had generated first-half profitability which might not be duplicated easily in the

second half, Mr Matthew said. The home appliance business and the Travelodge group — which is half-owned . by Magnum — had also enjoyed steady business, although satisfactory trading margins had not been achieved easily. In the past five months, the group’s wine interests had made sale volume gains of 30% to 40% over the previous year. Margins had also improved. The group’s funds surplus to immediate trading requirements of about SBOM — most of which resulted from settling the tobacco interest sale in September — were gainfully employed pending long-term investment.