DOMINION BREWERIES

New Zealand Herald, Volume LXXVI, Issue 23381, 24 June 1939, Page 11

DOMINION BREWERIES

LARGE TROFIT INCREASE MARKED TRADING EXPANSION RESERVES AGAIN STRENGTHENED A further period of marked expansion is reflected in the accounts of Dominion Breweries, Limited, for the year ended March 31. An increase in gross profits from trading of £101.216 to £"2.?2.135. was accompanied by a rise of £2-1,220 in the net. profit to the record figure of £60,477. Since the company in 1034 emerged from the depression. net earnings have increased by £63.041. The profit was struck after providing £60,000 for land, income and social security taxes, £21,918 for depreciation of building*, plant and furniture and £6412 for obsolete brewery plant. The provisions in the previous year consisted of £34,50.3 for land and income tax and £13,033 for depreciation on buildings, plant and furniture. Elimination of Goodwill The increased dividend of 12 per cent per annum, together with a bonus ot 7J per cent on the wages and salaries of employees, was announced in the Hebald earlier in the week. The year's dividend absorbs £32.600. The directors also recommend that £19.100 should be written off the goodwill account, which will eliminate this item, and that £13,.526 should be transferred to general reserve. This will leave a carry forward of £SOIB, compared with £4767 brought into the accounts. The retiring directors, Messrs. H. Beimers and L. J. Stevens, are eligible for re-election. Results for the past three years compare as follows: 1037 1938 1930 Brought forward £1,222 i)»o:? £3.707 Net profit .. 22,030 41,257 05,477 £2.3.201 £42,220 £70,244 To reserve .. 10,009 15,090 13,520 Off goodwill a/c. Dividend p.c. . . 0 10 12 Amount .. 12,208 22,4513 32,000 Carried forward £OO3 £4.707 £5,018 The progress of the company, which has been in existence for nine years, is shown in the following profit figures:— 1931. £4391; 1932. £lo4fi 1933 (loss), £14.001; 1034, £2436; 1935, £7947; 1936. £15.221; 1937, £22.039; 1938. £41,257; 1939, £65.477. The first dividend was paid in 1936. Balance-sheet Movements Movements in the balance-sheet items are as follows: — LIABILITIES £ £ Paid capital .. .. 300.000 +51,650 Overdraft .. .. 41.085 -18.340 Creditors . . .. 77.272 +30.739 Reserve for taxes .. 60.014 +25.414 General reserve . . 80.474 +27,500 Appropriation account 56,368 +24,377 ASSETS £ £ Land and buildings.. 218.635 +49.800 Plant and machinery.. 191,085 +58,825 Stock .. .. 81.140 +27.417 Debtors .. .. 61,601 +13,182 Leases, invest., etc. .. 14.510 -7,877 Goodwill .. .. 10.100 Same The accounts show that the marked improvement in trading has been accompanied by a further consolidation of the company's position. Reserves which have been steadily strengthened during the past 4hrec years, have again been largely increased. With this year's appropriation, the general reserve will stand at £IOO,OOO, compared with a paid capital of £300.000. In addition to the amount ear-marked from profit, the appropriation this year also includes a share premium reserve, by which it has apparently benefited to the extent of £l2,soo..Practically all the balance-sheet items show substantial increases, and bank overdraft has boon reduced by £18,340. This item is less other bank and cash balances totalling £7513. Total a<«ets at £622.113 again show a sharp advance, being £141,346 higher than in the previous vear. Further expansion is reflected in the value* of properties, which are valued at £49,800 more than in the previous year. Machinery and plant and stocks also are substantially higher. Provision for taxation, which this year includes the social security charge, shows an increase of £2(5,271.

NAPIER PLANT LEASED TWO HOTEL PROPERTIES An announcement lias been made by the Sunshine Brewery Company, Limited, of Napier, that it has leased its brewery in Napier and two hotel establishments to Dominion Breweries, Limited, for seven years. The two hotels involved are the Railway Hot-el, at Port Ahuriri, and the Provincial Hotel, in Emerson Street. It is understood that Dominion Breweries, Limited, will not carry out brewing in Napier, but that it is the company's intention' to employ the present brewery premises of the Sunshine Company as a depot for the Hawke's Bay district. The wine and spirit licences of the Napier Company have also been taken over under the terms of the lease. MAIZE CROP PROSPECTS HIGHER PRICES ANTICIPATED [llY TELEGRAPH. —OWN COMIESPOXDEXT] GISBORNP:, Friday Higher prices compared with those which ruled at the beginning of last season are expected for the new season's Poverty Bay maize crop, judging by the present position of markets. Last season business opened at the minimum price fixed by the Internal Marketing Department, os a bushel, f.0.b., Gisborue. No definite information has been received in Gisborne regarding the department's attitude toward the position for the coining season, but a statement is expected before long. It is believed, however, that a strong demand that may exist for New Zealandgrown grain should be responsible for stabilising the market on a higher level than last year. Little business has been done yet with the new season's crop. Consuming centres are still fairly well supplied with the last importations from Java and a month or six weeks may elapse before any material interest is displayed by northern merchants in the Poverty Bay articlo. The picking of the new-season's crop is well forward in the Gisborne district and both here and in the Bay of Plentv crops are picking out somewhat better than was at first anticipated. On this account it is likely that the harvest will be little reduced from last year in spite of the fact that substantial inroads were made on crops during the period of feed shortage in the summer and early autumn. WHEAT, FLOUR AND SUGAR LONDON, Juno 22 Wheat. —Cargoes are dull and parcels are lower., Futures —London: July, 21s Od a quarter; August. 21s BJd. Liverpool: July, 3s lOid a cental; October, <ls Lgd; December, -is 3Jd. Spot trade dull. Australian, 235. Flour, quiet and lower. Australian, ox store. ISs Od to 2.05, Raw liugar, beetroot basis, ,8s a, cwt.