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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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