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


Wool Services FY profit falls 66% on drop in wool prices

Wool Services FY profit falls 66% on drop in wool prices

By Hannah Lynch

Sept. 5 (BusinessDesk) - New Zealand Wool Services International, the wool scouring and exporting business whose majority shareholding is up for grabs, posted a 66 percent drop in full-year profit as wool prices tumbled.

Profit was $2.2 million in the 12 months ended June 30, from a record $6.6 million a year earlier, when wool prices surged in the face of global demand and a supply shortage. Sales rose 0.9 percent to $202 million.

The company warned last month that profit would miss its guidance because of a “sharp” decline in wool prices in April-to-June and what it called “unprecedented high volumes” offered in July. The company also has been forced to cope with a stubbornly high New Zealand dollar, which erodes the value of export sales.

Reduced consumer demand in Europe, particularly for floor covering, a fall in China's textile industry and a drop in the consumption of carpet wool in Australia also contributed to the profit decline, WSI said today.

"The market outlook for wool depends largely on the performance of wool markets, and as such remains uncertain," WSI said. "We remain positive despite the international downturn - this confidence is evidenced by recent wool sales where prices have shown a firming tendency."

Improvements to WSI Kaputone Wool Scour over the next twelve month will also help "improve processing profits" to "achieve a satisfactory full twelve month result - better than the year under review," it said.

A 64 percent stake in WSI is up for grabs because it was owned by the Allan Hubbard-related companies Plum Duff and Woolpak Holdings, which are in receivership.

WSI’s scouring assets attracted Cavalier Wool Holdings, a joint venture between carpet-maker Cavalier Corp, Accident Compensation Corp and Direct Capital Investments, which wants to create a national monopoly on scouring and has received sign-off from the antitrust regulator.

WSI shares were unchanged at 37 cents and have shed 26 percent this year. The company didn’t declare a final dividend.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>

Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>

Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>