Magnum lifts interim 45%

Press, 5 March 1988, Page 24

Magnum lifts interim 45%

PA Wellington Restructuring helped Magnum Corp boost its December half year earnings before extraordinaries 45 per cent to $22,683,000 ($15,625,000 in the previous corresponding period).

The result included a one-month contribution from 87 per cent-owned Progressive Enterprises Ltd and six months from full subsidiaries Dominion Breweries and Quill Humphreys. The 1986 period did not include earnings from those companies. Turnover jumped to $659,108,000 ($299,131,000).

Directors described the result as satisfactory and declared an interim divident of 7.5 cps, or 15 per cent, payable on April 5. Extraordinaries were a

gain of $3,914,000 from the sale of surplus assets. That was\ a sharp drop from 1986 when Magnum divested its tobacco business, bringing'in gains of $64,488,000. This meant a cut in the bottomline result to $26,597,000 (from $80,113,000). Commenting on Magnum’s trading result, the directors said industrial action before Christmas had an adverse effect on several liquor operations at a time when they traditionally earned a significant amount of the group’s first half earnings. Consumer spending had contracted in recent ;months, making it “difficult to predict further strong earnings growth for the group during the next six months,” they added. But they did expect a

"satisfactory” full year, given the Progressive Enterprises contribution and operating efficiencies now achieved. | The interim report showed a 66 per cent rise in gross; profit to $41,714,000 ($25,100,000). Tax was ($9,982,000). Earnings before extraordin'aries were arrived at after deducting minority interests of $1,616,000 ($7,000) and adding a share of associate company} retained profits amounting to $517,000 ($514,000).

The dividend maintains the same interim payout rate as for the 1&86 first half. The directors added that it was not {payable on the new Magnum shares issued to Progressive shareholders j who accepted the takeover offer.