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

 

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news