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


Pernod Ricard NZ posts smallest loss since 2009

Pernod Ricard NZ posts smallest loss since 2009 as write downs slow

By Paul McBeth

Jan. 6 (BusinessDesk) - Pernod Ricard’s New Zealand unit posted its smallest annual loss since 2009 after ending three years of substantial writedowns.

The New Zealand holding company, Millstream Equities, narrowed its loss to $9.6 million in the 12 months ended June 30, from $182.3 million, making it the smallest deficit in four years. The Pernod Ricard unit wrote off about $270 million of goodwill and wore a $99 million loss on the sale of local brands in the past three years, and has racked up retained losses of $879 million.

The global parent, the world’s second-largest liquor distiller, injected $715.4 million of new capital last year, almost doubling the shares on issue, and the holding company had equity of $682.2 million as at June 30.

The statements noted a deficiency in working capital of $22.9 million, and the directors continued to assume the company is a going concern after the immediate parent confirmed an intention to extend a current loan for a further 12 months from June 15, 2013. The parent was owed almost $22.8 million at the June 30 balance date.

Pernod’s local gross profit jumped 51 percent to $59.3 million due to the liquor group reaping a $16.7 million gain in the fair value of its agricultural produce, helping offset a 3.5 percent slide in sales to $227.7 million.

The company’s takeover of Allied Domecq in 2005 gave it New Zealand assets including the Montana wine business. It rationalised them with the sale of a Gisborne winery, five vineyards and 12 wine brands, including sparkling wine Lindauer, to Lion and partner Indevin Group for $88.3 million in 2010.

That deal ended up in court after Lion claimed Pernod had breached warranties by not disclosing certain margin agreements with the Woolworths-owned Countdown supermarkets. Last month the Court of Appeal upheld a ruling against Lion’s claim for damages of between $6.25 million and $8.96 million.

The judgment hadn’t been released at the date of the Pernod statements being lodged.

The Pernod unit took provisions of some $25.3 million to cover the cost of legal claims recognised by the directors, chiefly its involvement in the tax department’s investigation into interest deductions on mandatory convertible notes.

Inland Revenue 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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news