NATIONAL TOBACCO CO.

Hawke's Bay Tribune, Volume XXIII, Issue 300, 2 December 1933, Page 9

NATIONAL TOBACCO CO.

15 Per Cent. Dividend £35,025 PROFIT FOR YEAR A dividend of 15 per cent, on the ordinary shares and 8 per cent, on preference shares is recommended by tho directors of the National Tobacco Co., Ltd., in the annual report to be submitted at the tenth annual meeting of shareholders, to be held at Port Abu- , riri on December 14 next.

Last year’s workings resulted in • profit of £35,025 11/9, according to the report, which indicates the directors’ desire to transfer a further sum of £20,000 to the reserve fund. i . After alluding to the increase in the excise duty on tobacco the report stated that this increase has been followed by a corresponding increase in the cost of the manufactured article, and that , this has in turn affected the demand. It continues: “In times of plenty the smoker will merely growl, but ultimately pay. It is different to-day, living under the shadow of this acute depression. His earnings have shrunk, and he has to cut his rations finer. Some have to go without. Out of the vast army of unemployed there are few who can pay the price of a standard brand. And on top of this the sales tax which, strangely enough, singles out the poor man’s pipe, leaving the cigarette a privileged smoke.” Dealing with the financial aspect of the company’s operation, the report states that the stock of raw leaf, manufactured tobacco and material was higher by about £27,000 compared with last year. This increase was accounted for by the exceptionally heavy crops, exceeding for the first time the one million mark, in addition to which the company had carried forward into this year a larger balance than usual from the previous crop. Provision had been made to cut down the acreage under tobacco by half, so that it would have to deal next year with a correspondingly smaller crop.

Cash in han.l and at bankers amounted to £75,097 8/10 including £40,000 fixed deposit, earning interest at from 3J per cent to 4| per cent, per annum Further additions had been made to the new factory buildings, including spacious offices, erected in steel and reinforced concrete, practically all earthquake proof, and the property held by the company, including plant and machinery, now amounted to £61,033 12/-, after writing off £4,570 16/11 for depreciatibn. After deducting all charges and allowing the sum of £19,000 for income tax, there was a balance left of £35,025 il/9, which represented the net profit for the year. To this must be added the balance of £7,313 7/• brought foilward from last year, making a total of £42,338 18/9 available for distribution. The directors recommend absorbing £17,918 18/4 of this amount in dividends to shareholders, the transfer to reserve of £20,000 and the carrying over into next year of the balance of £4420 0/5.