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

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news