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

 


Cottonsoft makes small profit in 2013 after FX loss

Cottonsoft makes small profit in 2013 after FX loss

By Pam Graham

July 10 (BusinessDesk) – Cottonsoft, the maker of Tuffy paper towels and Kiwisoft toilet tissue, made a small profit in 2013 after booking a sizeable foreign exchange loss.

The company which imports paper and manufactures it into a range of consumer products reported a profit of $57,000 in the year to Dec. 31, 2013 compared to a loss of $1.05 million in 2012. Revenue rose to $82.2 million from $77.2 million a year earlier.

The notes to the accounts show a $1.23 million net foreign exchange loss in 2013 compared to a $1.11 million net foreign exchange gain in 2012.

The New Zealand dollar is near a post-float record, which makes imports cheaper. But all year it has been expected to come under pressure from a resurgent US dollar and importers likely took up positions for that prospect.

The NZ dollar was recently at 88.17 cents on Thursday.

Bank of New Zealand has upgraded its forecasts for the currency, saying it will still be 84 US cents by the end of September, up from a previous forecast of 81 cents. It will be 80 cents by the end of the year from the previous forecast 79 cents.

The accounts show Cottonsoft’s finance income was down to $62,000 from $1.1 million last year. No dividend was paid in 2013 or in 2012.

Cottonsoft, which also has the Paseo brand, received a capital injection from its foreign owner Asia Pulp and Paper after breaching its bank covenants in 2011.

The company was in the news in 2004 when Carter Holt Harvey alleged it breached the Fair Trading Act by selling toilet paper made from imported paper as New Zealand-made. Carter Holt owned a rival tissue company at the time which it subsequently sold to Sweden’s SCA.

Financial statements recently filed by rival SCA’s New Zealand unit, PEPSCANZ Ltd, show the maker of Sorbent and Purex toilet paper, Treasures nappies and Libra tampons reported profit of $27.5 million in calendar 2013, as revenue fell 3.1 percent to $247.6 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news