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

 

Open Country posts record annual profit on surge in sales

Open Country posts record annual profit on surge in sales, sees 'strong' 2015

March 5 (BusinessDesk) - Open Country Dairy, the dairy manufacturer controlled by Talley's Group, reported a record profit for 2014 as revenue growth outpaced rising cost of sales, and said it expects a "strong" result in 2015


Profit was $29.8 million in the 12 months ended Sept. 30, 2014, from $18.2 million in a 14-month period a year earlier, according to the Auckland-based company's annual report. Open Country changed its balance date to Sept. 30 from July 31 in 2013.


Sales jumped to $908 million from $635 million, while cost of sales rose to $858 million from $597 million, allowing the company to increase gross profit by 31 percent. The 2014 year took in a season in which farmers received a record payout for their milk, while global dairy prices tumbled in the second half from near their highest levels in seven years.

This year, the mix is "more volume, lower revenue and lower cost of goods sold," said chairman Laurie Margrain. "I would like to think it is another strong result."

Open Country didn't declare a dividend. Margrain said the company is "reinvesting in stainless steel for growth."


Talley’s, the privately-held maker of foods ranging from frozen fish to ice cream, increased its holding in the company from 55.5 percent in late 2013 by buying shares from Singapore’s Olam International,, which is the second-largest shareholder with a current stake of 15 percent. for as much as $46.5 million.

The dairy company is relatively unaffected by drought which has disrupted milk production in some parts of New Zealand as none of its catchments are in the most adversely affected areas, Margrain said.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

LA-London Out; Auckland-NY In: "New Era" For Air NZ International

Air New Zealand is accelerating its ambitions for North America and will launch a non-stop service between Auckland and New York using its 787-9 Dreamliner in October 2020. More>>

ALSO:

Data Investment: Govt Backs Te Reo, Environmental Data Research

The Government is investing in ambitious research that will digitise Te Reo, grow the low-carbon protein efficient aquaculture industry, help interpret environmental trends, and large data sets says Research, Science and Innovation Minister Megan ... More>>

ALSO:

Training: 27 Percent Increase In Trades Academy Places

Two secondary-school initiatives are being expanded as part of the Government’s plan to see more young New Zealanders take up a trade to help close the skills gap. More>>

ALSO:

Unsolicited Messages: NZ Company Fined $36,000

The New Zealand Trustees Association (NZTA) and founder, Errol Anderson, have been fined a total penalty of NZ$ 44,000 in the Auckland High Court for sending unsolicited commercial electronic messages. More>>

Marine And Freshwater Reports: EDS Calls For Urgent Action On Marine Management

“There are some big issues to address. These include many marine species and habitats that are in serious trouble. Of the sample investigated, the report finds that 22% of marine mammals, 90% of seabirds and 80% of shorebirds are threatened with or actually at risk of extinction..." More>>

ALSO: