N.Z. DRUG COMPANY

Dominion, Volume 31, Issue 151, 23 March 1938, Page 14

N.Z. DRUG COMPANY

Sound Financial Position DIVIDEND AND BONUS Dominion Special Service. Dunedin, March 22. The sound financial position of the company was referred to by the chairman of directors, Mr. If. AV. Mitchell, in moving tlie adoption of the report and bal-ance-sheet at the fifty-ninth annual meeting of Kempthorne, Prosser and*’ Co.’s New Zealand Drug Company Ltd. to-day. The chairman also referred to the unique position the company held in the Dominion in that it could at present hold its own with world competition unassisted by tariffs. ‘The year has not been without its problems,” said Mr. Mitchell. ‘‘Undoubtedly primary producers are realising that it pays to assist Nature by a more liberal use of fertilisers on their lands, and as most of them have benefited by advances in the price of wool and other primary products they have been able to invest more extensively in superphosphate and kindred manures. A general, increase in the spending power of the public has also affected our turnover in other branches of our business. These factors are reflected in our sales at our chemical works and warehouses, resulting in a greater output, and this, in turn, has assisted in the economical operation of our establishments, as is shown by the increased net profit.. I submit this aspect of the position with much pleasure and, feel sure shareholders will share this satisfaction.”

“Referring to the bonus distribution of 5/- per share which has already been announced. in addition to a final dividend of 44 per cent, making 8 per cent, for the year, the chairman said that over a period exceeding 50 years the policy of those responsible for carrying on the company’s business had been to build up assets and aim at attaining a strong position.. This policy had borne fruit, and in, view’ of the strength of the financial position now attained it was recommended that payment from these accumulations could now be made. The directors had much pleasure in asking approval to a bonus distribution of 5/- per share. It was felt that this could be done without in any way jeopardising the company’s assets. After withdrawal of the amount’necessary, the total reserves, including the amount carried forward, would stand at £158,491. The report was adopted. Messrs. AV. Taylor and IV. F. Edmond were're-elect-ed directors.