M.K. MILLINERY

Evening Post, Volume CXXIV, Issue 26, 30 July 1937, Page 11

M.K. MILLINERY

COSTS HIGHER, PRICES LOWER

At a meeting ■of • directors of the M.K. Millinery, Ltd.. held at the company's head office, Auckland, on July 28, it was decided to declare an interim dividend of 10 • per cent., payable on August 12. In the course of the report, the directors pointed out that in their opinion they were more than justified in declaring this rate in view of the considerable advancement in this first six months of 1937.trading period. Contrary to present expressions of opinion that the sudden increase in costs brought about by legislation must be passed on in the price of goods, the directors of this company decided to reduce their prices .corresponding to the same period in 1936. They realised, of course, that this meant increased volume' of business' being essential. To ensure this being brought about, they confirmed the policy of increasing wages over and above the rate determined by legislation. The result is that the company's sales for the six months in question increased by 39.4 per .cent, and its- profits' by a much larger percentage. '.■-'•'■ . For the coming six months, which is the best trading period with this particular class of business, the directors reported that they have every confidence that this rate of increase in business, should be held. Failing any major set-back outside their control, they.hold great hopes for the company's future.