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

 


SAP's NZ unit posts record sales in 2013

SAP's NZ unit posts record sales as parent makes push into cloud

By Jonathan Underhill

June 24 (BusinessDesk) - SAP New Zealand, the local unit of the world's biggest business management software company, posted a 32 percent jump in sales last year to the highest in more than a decade on growth in its traditional enterprise applications.

Sales rose to $119.8 million in calendar 2013, from $91.3 million a year earlier, according to the company's annual report. Profit jumped 63 percent to $10.4 million as revenue growth outpaced a 19 percent gain in expenses.

The New Zealand business has so far avoided the impact felt by its German parent of the shift to cloud-based computing services, which has allowed smaller rivals such as San Francisco-based Salesforce.com, which inked a deal with Microsoft in May, to win sales of software delivered over the internet. SAP, which has 24 percent of the business management software market according to Gartner, has responded with a concerted push into cloud-based services. In April it posted quarterly sales of 3.7 billion euros, missing analyst estimates.

The local unit is also investing in new technologies, such as cloud, mobile and real-time analytics, said SAP NZ managing director Graeme Riley. In 2013, "we saw particularly strong growth in our applications and enterprise mobility portfolio, as more organisations look to better engage their customers and employees with consumer-grade user experiences," he said.

SAP's New Zealand customer list is a who's who of major corporates and government agencies, including Fonterra Cooperative Group, Telecom Corp., Contact Energy, the Inland Revenue Department and the New Zealand Defence Force. Sales last year were the highest since the business began disclosing its financial statements to the Companies Office in 2002.

In 2013, cost of sales climbed 32 percent to $78.9 million. Sales and marketing expenses climbed to $17 million from $13 million, while costs of research and development rose to $8.5 million from $7.5 million.

SAP NZ paid $10.4 million in income tax in 2013, up from about $6.4 million a year earlier. The company paid management and corporate administration fees and royalties of $16.9 million last year from about $12 million in 2012. All up, it paid $32.8 million in transactions with affiliates, almost double the year earlier.

The annual report shows SAP NZ folded its 3-D software subsidiary Right Hemisphere into the company on March 31 this year, having swallowed up the business in 2011 in a deal criticised at the time because the target had been granted an interest-free US$8 million loan from the government.

SAP's stock last traded at 57.12 euros on the DAX 30 and has climbed about 5 percent in the past 12 months, lagging behind a 29 percent gain for Germany's benchmark stock index.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news