NATIONAL TOBACCO

Nelson Evening Mail, Volume LXXIII, 6 December 1940, Page 7

NATIONAL TOBACCO

I AX ABSORBS PROFITS Reviewing his company’s business for the year ended 31st October. Mr Gerhard Husheer, chairman of the National Tobacco Company. Napier, reports difficulties experienced in importing raw materials. Sales of the company’s cigarettes improved nearly 50 per cent, on 1939 returns. Excise duty paid was over £300,000. The company had made a free of interest loan to the Government of £SOOO and this had been converted into war loan stock, maturing 1953. Mr Husheer also stated that the total assets were higher by £17.320 at £355,008. but this increase was practically absorbed by larger reserves that had to be made for taxes —in all £26 044 compared with £10.093 last year. Stocks were up by £31.619—at £132.479 and advances on purchases by £32.418—at £34.109. Cash was down by £47.276 at £41,317. Financially fhe company had maintained its strong position with highly liquid assets. In keeping with the larger turnover profits had grown from £16.454 to £24.727, “but this gain is entirely wiped out by the additional taxes.” What was left after taxation was £7582. •Recourse was had to the reserves in order to pay the preference dividend of 8 per cent, and the ordinary dividend of 10 per cent. The chairman also referred to the company’s acquisition of tobacco recemng and drying premises at Motueka. They are equipped with a j drying plant and eminently suited for ! re-handling the loose leaf as it comes in from the grower. The large floor space allows the company to deal with a season's crop in a relatively much smaller time than was previously the case. This change in the system of taking delivery of the leaf in the district Where it is grown, has, says the report, been welcomed by the growers.