BREWERY EARNINGS

New Zealand Herald, Volume LXXIII, Issue 22518, 8 September 1936, Page 5

BREWERY EARNINGS

EXPANSION IN PAST YEAR

STATE'S DUTY EXPECTATIONS HOPES OF SHAREHOLDERS As tho State expects to participate heavily in tho earnings of brewery companies during the current financial year, shareholders may be pardoned for being of somewhat the same frame of mind. The breweries section is at present tho most vigorously supported of any industrial group on New Zealand Stock Exchanges. Tho Minister of Finance, Mr. Nash, is budgeting for what is probably a record revenue of £770,000 from beer duty, compared with £715,042 collected in the past financial year and £071.008 in 1934-35. In addition, the companies will bo large contributors to income tax, and land tax revenue. With other industrial concerns, the breweries will have to moot increased labour costs, but the investment market apparently believes that all extra charges can bo met, and tho companies will still bo in a position to deal liberally with shareholders.

Progress from the depression in most countries has been marked by an upward curve in beer consumption figures. In Britain tho consumption for tho first half of 1936 was 7,807,175 barrels, compared with 7,605,328 barrels in tho first six months of 1935. Tho estimated consumption in New Zealand last year was 10,593,000 gallons, against 8,846,000 gallons in 1934. The low point in recent years was 8,805,000 gallons, in 1933. Considering that 14,284,000 gallons were consumed in 1926, tho Dominion still has a fair margin to work on. Higher wages and moro leisure time for workers will probably assist the upward movement. The consumption per head last year was only 6.8 gallons, against 10.3 in 1926.

Tho combined profits of the threw largest New Zealand companies havw expanded considerably in the past throe years. A comparison of capital employed and profits earned is as follows:—•

1033-34 1034-35 1035-36 Paid capital 1,520,178 1,520,478 1,550,700 Net profits . 02,105 101,177 120,150 All the three companies—New Zealand, Dominion arid Staples—have increased their dividends recently. New Zealand Breweries' payment for the past year was raised from 7 per coat to 7J per cent. Dominion Breweries paid its first dividend, CJ per cent, and Staples has increased the current year's interim dividend from 2i per cent to 3 per cent.

STANDARD INSURANCE PAST YEAR'S OPERATIONS DETAILS OF APPROPRIATIONS [BY TELEGRAPH OWN COKEESI'ONDF.NT] DUNEDIN, Monday Speaking at the annual meeting of the Standard Insurance Company, Limited, to-day, the chairman of directors, Mr. W. F. Edmond, said the accounts indicated a successful year, resulting in a balance of £51,091.

From that sum, £SOOO had been written off property, £SOOO had been added to depreciation of securities, £ISOO had been contributed to the provident fund and £IO,OOO had been placed to general reserve. It was now recommended that from the balance left after these disbursements, a dividend of Is 3d a share should be paid, absorbing £12,500, and that £20,091 be carried forward.

Mr. G. W. Hutchison, of Auckland, seconded the adoption of the report and balance-sheet and the motion was carried. Messrs. James Quayle and W. E. C. Iteid were re-elected directors.

RISE IN COPPER BEST PRICE SINCE 1933 FUTURE OF RESTRICTION The London price of copper is again advancing after a slight setback in the middle of last month. The highest price this year, £3B 15s 7-Jd a ton, was reached on August 14. The market dropped to £37 18s ljd, after which there was a steady rise to the current rate of £3B 13s lid. At this level copper is again approaching the top price in 1933, £3B 18s 9d a ton. Top values in 1934 and 1935 have been exceeded this year. Armament activity has contributed to the rise in copper prices, but recovery in the heavy industries and in the electrical and building trades has been the most potent factor in tho steady upward trend. The scopo for increased consumption in the United States was mentioned by Sir Robert Williams, chairman of directors, at the annual meeting in London of Tanganyika Concessions. Sir Robert said: "While in countries outside America 1,050,500 tons of copper were used in 1935, compared with 848,000 tons in 1929, copper consumption in the United States was only 520,000 tons in 1935, compared with 1,015,000 tons in 3929. It is thus evident there is room for a very big increase in consumption in the United States, and it seems probable that not only in America, but in other countries also, tho requirements for reaniiamcnt and general trade purposes will materially increase tho consumption of copper. Wo may look forward, not only to an improvement in tlie market price of copper, but to a gradual relaxation of the copper output restrictions which have been adopted by producers in th<* common interest with such success." PRODUCE AT PUKEKOHE STEADY DEMAND FOR ONIONS [FIIOM OUll OWN COIIIIESrONDENT] PUKEKOHE, Monday Onions are meeting with ft steady demand at Pukekohe, with values unchanged at from £8 to £8 6s a ton. Demand is keen for green and root vegetables and supplies are fairly heavy, with the exception that, owing to the recent cold weather, supplies of cauliflower are restricted and values have taken a sharp rise. To-day's quotations for cauliflower range up to 6s a largo sack; Henderson cabbages, 4s 6d a largo sack; Drumhead, 4s 6d; carrots, 5s 9d a sugar bag; parsnips, 4s; beetroot, 4s; white turnips, 4s; lottuce, 5s a banana case; kumaras, 18s a cwt; celery, 2s per bundle of six stalks; rhubarb, 5s 6d a dozen bundles; cabbage plants, (5s a 1000; cauliflower, 7s; lettuce, 8s 6d; onions, straw Spanish, 3s 3d; brown Spanish, 3s 9d; artichoke seed, 6s 3d to 6s 9d per cwt*