Arnotts turns out improved net earnings

Press, 24 September 1988, Page 33

Arnotts turns out improved net earnings

NZPA-AAP Sydney Arnotts, a Sydney-based biscuit maker, showed a 10.4 per cent net profit rise to sAust37.9 million (SNZ4B.6M) in spite of difficult trading in the year to June 30. “Given a small decrease in real wages, some areas of consumer demand were relatively flat,” directors said. The result was on earnings of sAust69BM, up 11.5 per cent, and a 15.4 per cent fall in other revenue to sAustllM. Extraordinary items showed a loss of sAust494,ooo compared to a gain of sAust79.9lM previously. A recommended final dividend of 8c increases the annual rate from 15.5 c to 17c (34 per cent). The result was affected adversely by industrial disputes in New South Wales which cost three weeks sales. Profit improved for the Snack Foods joint venture and in the Morobe Bakery group in Papua New Guinea. The 51 per cent owned macadamia operations, Mac Farms International Inc., had a successful year due to strong world demand for macadamia nuts. A test market in the United States using biscuits exported from Australia continued to result in a charge against profits. “However these costs are in line with budget and we are encouraged by some of the results achieved,” directors said. This week Arnotts applied to the relevant government authorities, including the Trade Practices Commission, for approval to buy the Australian biscuit business of Nabisco brands.