N.Z. BREWERIES

Evening Post, Volume CXXXI, Issue 143, 19 June 1941, Page 11

N.Z. BREWERIES

SUCCESSFUL YEAR

DIVIDEND DECLARED

Mr. D. W. Madden, chairman and managing director of New Zealand Breweries, Ltd., presided at the annual meeting of the company yesterday. In moving the adoption of the report and balance-sheet, he first referred with regret to the death of Mr. Hugh Adam, Dunedin, who had been associated with Speights Brewery for over 40 years. Mr. Adams's sound sense and good judgment, said Mr. Madden, had been of valuable service to James Speight and Co., and later to New Zealand Breweries, Ltd., as manager at Dunedin and a director of the company. Mr. R. C. B. Greenslade, of Dunedin, had been appointed to the vacancy caused by the death of Mr. Adam.

From a trading viewpoint the year under review has beena successful one, output being more than well maintained, and all brewing and bottling plants fully employed; but particularly so at the Auckland branch. "There is ample evidence of the public's appreciation of the quality of the company's brews," said Mr. Madden. "The satisfactory trading turnover has been achieved in face of serious shortages, from time to time, in coastal transport facilities. In recent months, too, regular supplies of articles essential to the trade have become increasingly difficult to procure." A serious loss was suffered in the destruction by fire of the Speight malthouse. Under exist- j ing conditions, the replacement of buildings and plant and the provision of current requirements of malt presented major problems. HIGHER COSTS. Gross profit for the year (after payment of beer duty) was £718,910, or less by £46,585 than last year's figure. Costs of all raw materials had increased substantially, but no increases in prices of the company's products had been mad 6on this account. Reductions and savings under various heads, amounting to £30,528, had been made and the net profit shown was £ 120,338, or £ 16,057 less than net profit of last year. An interim dividend.of 3J per cent., requiring £57,237 6s Id, was paid in December last. The directors recommended a final diyidend for the year of 4 per cent., which would make a total dividend rate, free of all taxes, of 7J per cent. The dividend , recommended would require £65,415 3s 2d, and the total distribution for the year would be £122,652 9s 3d, or £2313 12s 5d more than the year's net profit. The carry forward to the new year's account would thus be reduced by the latter amount. Investments and advances at £672,864 increased by £163,387. The amount of the company's subscription to the War Loan was in excess of this increase. Sundry creditors, moved from £348,954 to £380,916, an increase of £31,962, explained by the extra amount necessary to provide for taxation- The amount owing to bankers, £248,901, was £141,061 in excess of the previous year's overdraft. DRAWING ON THE BANK. "It was necessary to avail ourselves of bank accommodation to meet the company's War Loan requirements," Mr. Madden explained. Financial requirements of the Government' for war , and other purposes had placed heavy demands on the resources of companies like theirs. MEN WITH THE FORCES. Over 150 employees of New Zealand Breweries, including many highlytrained technicians, were serving with the Forces, and their withdrawal had increased the responsibilities and demands on employees remaining with the company. "It is with pleasure I express appreciation of the manner in which the company has been served by its entire staff and employees under the difficult conditions now existing," said Mr, Madden. The company continued to grant financial assistance, commensurate with their monetary sacrifice, to those employees who are with the Forces, he added; and through medium of the Employees' Provident Fund, which received a liberal subsidy from the company, the welfare of all employees was being safeguarded. Benefits amounting to £6463 were paid out of the fund during the year just closed, bringing the total payments, during the eleven years of the fund's existence, up to £30,169. The report and balance-sheet were adopted. Messrs. E. R. Davis, H. T. Speight, and D. E. Wanklyn were reelected directors. Messrs. Watkins, Hull, Wheeler, and Johnston were reappointed auditors.