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

 


Independent Liquor takes more impairments, loss narrows

Independent Liquor takes more impairments, loss narrows

By Paul McBeth

Jun. 6 (BusinessDesk) - Independent Liquor (NZ), whose Japanese owner Asahi is locked in a court battle over the $1.5 billion price tag it paid for the booze empire, narrowed its loss in 2013, while writing down the value of the business even further, in a year where it spent $18.2 million to extend its reach into retailing.

The Papakura-based company reported a loss of $41.6 million in calendar 2013, down from the $117.9 million loss a year earlier, according to financial statements filed with the Companies Office. Revenue dropped 13 percent to $357.4 million, and the liquor company took a $24.5 million impairment charge on goodwill, adding to the writedown in 2012 of $138 million. As at Dec 31, the group's intangible assets were valued at $292.5 million, down from $324.6 million a year earlier. That includes $6.2 million of goodwill from its acquisition of The Mill Retail Holdings.

Asahi bought Independent Liquor, trading as Flavoured Beverages Group Holdings, in 2011 when it was on a spending spree, having built up a US$4.9 billion war chest. It has since filed papers in the Federal Court in Melbourne against vendors Pacific Equity Partners, Unitas Capital, certain funds controlled by the two firms, management services companies for the firms, and certain directors of both private equity companies, claiming it was misled over Independent's earnings and overpaid as a result.

Independent Liquor recognised the legal proceedings as an unquantified,contingent asset in the 2013 accounts.

The liquor company bought the 35-store Mill retail chain last year for $18.2 million, which it has previously said would operate as a standalone business.

The expansion into retail came after Independent Liquor launched its boutique beer brand, Boundary Road, in 2011 to add to its dominance in the local ready-to-drink market, with brands including Woodstock Bourbon and Vodka Cruisers.

Independent Liquor ramped up spending on sales and marketing in 2013, with expenses up 16 percent to $40.5 million. Distribution expenses increased 3.7 percent to $13.9 million and manufacturing overheads rose 25 percent to $16.1 million. Administration expenses were cut by 31 percent to $22.4 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news