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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news