COLONIAL SUGAR COMPANY.

New Zealand Herald, Volume LXVI, Issue 20244, 2 May 1929, Page 11

COLONIAL SUGAR COMPANY.

RECORD PROFITS FOB PERIOD;

DIVIDEND OF m PER CENT.

DEPRESSION IN WORLD MARKET,

. Australian and N.Z, Press Association. (Received May 1, 11.5 p.m.*) SYDNEY, May 1. Neb earnings amounting to £507,149, the largest on record, were shown in the report by the directors of the Colonial Sugar Company for the half-year ended March 31, which was adopted at the meeting of the company to-day. The report states that the profits for the period from the Australian mills and refineries and from other investments subject to Federal income tax, after providing for depreciation and other charges, amounted to £265,372. The earnings in New Zealand and Fiji and from other investments not subject to Federal income tax were £241,777. ■ From the total of £507,149 the board proposed to pay a dividend of 20s and a bonus of 5s a share, absorbing £365,625 and leaving £141,524. The addition of the latter amount to the balance of the profit and loss account at September 30, £369,385, made £510,909, from which the board proposed to place to reserve £loojooo, leaving to the credit of the profit and loss account £410,909. With the present addition, the reserve funcj, is £875,000, The company also made an addition of £196,897 to the replacement and depreciation fund. The report stated -that the total output of the Australian and the Fiji mills was lower than expectations by 6200 tons. The position in regard to the Fiji crop was saved by tho preferential duty in Canada and Britain.

Great depression had been caused in the world's market for sugar by increasing production, resulting in. the prico of raw sugar falling £4 10s a ton, which is, roughly, 50 per cent, of the present value of Cuban sugar c.i.f. in the United Kingdom, sales of refined sugar for the hall-year disclosed no increase in consumption corresponding with the increase of population. The report and balance-sheet Were adopted. - Following is a comparison of the company's results and appropriations for the last three half-years:— Half-year March, Sept., March, »o lU'itt. 1928. 1929. Brought forward <£341,366 £3b;>,853 £36y,38a Net profits . 4y0,11l 469,157 607,149 £831,477 £835,010 £876,531 To reserve . . 100,000 100,000 100.000 Dividend, 12} p.o. 365,625 360,ti25 36d,620 Carried forward £365,853 £369,385 £410,909 Compared with the corresponding period of last year, the net profits for tiie six months to March 31 show an increase of £17,038, the Australian profits having been higher by £28,865, wliile the New Zealand and jj'iji- profits have decreased •by £11,827. In comparison with the September period, the difference of £37,992 comprises increases in both sources of £6199 and £31 f 793 respectively.