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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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