Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Pernod Ricard NZ loss widens on writedown, weaker sales

Pernod Ricard NZ falls deeper into the red on $119M write-down, dwindling sales

By Paul McBeth

Jan. 9 (BusinessDesk) - French liquor giant Pernod Ricard's local unit widened its annual loss after writing down the value of assets and investments by some $119 million and as falling sales and higher costs flattened its margins.

The New Zealand holding company, Millstream Equities, reported a loss of $182.4 million in the 12 months ended June 30, according to financial statements lodged with the Companies Office. That's up from a loss of $105.3 million a year earlier when it booked a $99 million loss on the sale of local assets including the Lindaeur brand. The liquor company wrote down assets by $19 million and booked a $100 million impairment charge on goodwill in the latest year.

Gross profit almost halved to $39.4 million on an 8.7 percent fall in sales to $235.9 million as costs were bolstered by underutilised wineries and poor weather lowered production.

Last year Pernod Ricard closed its Hawkes Bay Winery in Napier and shifted those operations to the Church Road winery down the road. The move was part of a decision to exit "non-strategic" vineyards and led to a $6 million impairment charge on the company's biological assets.

The global parent injected $715.4 million of new capital during the year, almost doubling the shares on issue and keeping the company's equity positive at the balance date.

The liquor company took a $24.1 million provision for legal claims in the period. Pernod Ricard is one of several companies fighting the Inland Revenue Department over its use of mandatory convertible notes - a hybrid security with characteristics of debt and equity.

The tax department alleges the securities, which let companies juggle debt and equity to provide a tax advantage, were used simply as a means to minimise tax.

"The company and group will continue to dispute the proposed adjustments," the statements said.

Pernod Ricard also flagged a dispute over the sale of Lindaeur and associated assets in 2010. The company said it received a High Court judgment in its favour after the June 30 balance date, which has since been appealed by Lion Nathan subsidiary, Lion - Beer Spirits & Wine (NZ).

The liquor company didn't disclose what the dispute was over citing commercial sensitivity, but didn't think it "probable that an outflow of resources will be required."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news