Pernod Ricard's Millstream unit more than doubles full-year profit, assesses quake costs

Friday 23rd December 2016

Pernod Ricard’s New Zealand unit Friday reported an annual profit that more than doubled but warned it was still assessing the financial impact of the 7.8 magnitude Kaikoura earthquake that rattled the country in November.

The liquor group's Millstream Equities posted a profit of $7.4 million in the year ended June 30, from $3.6 million a year earlier as revenue rose to $241 million from $228 million. Its total operating expenses were $19.6 million versus $10.1 million in the prior year, reflecting higher management fees, repairs and maintenance. Tax cost also rose.

Millstream Equities, which manufactures and sells wines and spirits, said its accumulated losses now stand at $828 million versus $835 million in the prior year. No dividends were declared.

It noted the Nov. 14 earthquake had resulted in damage to its Blenheim winery on the northern tip of the South Island that is subject to an insurance claim.

“The financial impact of the earthquake is still being assessed and cannot reliably be measured at this time,” it said.

In late November, then Economic Development Minister Steven Joyce said the industry was “facing some challenges” after the earthquake. Joyce, who is now finance minister, said the main impact was to around 20 percent of wine storage tanks in the region.

Wine exports reached $1.6 billion in the 12 months to November and are currently New Zealand’s seventh-largest export.

BusinessDesk.co.nz

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