Thursday 4th January 2018
|Text too small?|
Pernod Ricard’s New Zealand unit turned to a loss in 2017 after it booked a $150 million goodwill impairment.
The liquor group's Millstream Equities posted a $136.2 million loss in the year to June 30, 2017, from a $7.4 million profit a year earlier. Revenue rose to $248 million from $241 million a year earlier, while cost of sales increased to $178 million from $160 million the prior year.
Millstream Equities owns a number of New Zealand wine brands including Church Road, Brancott Estate and Stoneleigh. Its French-listed parent, Pernod Ricard SA, last traded at 131.20 euros, up 26 percent in the last 12 months.
The impairment left the group calculating goodwill at $157.7 million, compared to $307.7 million in 2016. Notes to the accounts said the goodwill balance relates to the historical acquisitions of Montana Group by Millstream Equities in 2001.
Operating expenses increased tenfold to $196 million, including the large goodwill impairment. Within that category, the company also spent $16.5 million on earthquake business continuity and repairs, up from $4.9 million a year earlier.
No comments yet
NZX holds first Investment in NZ seminar to market the market
NZ dollar gains may be short-lived as investor nerves tested
Global Dairy Trade looks to boost liquidity, add new markets
NZ First urged to block exploration ban
Net migration falls as growing number of migrants pack their bags
Ebos tightens grip on Australian chain
October 19th Morning Report
NZ dollar falls vs yen; investors seek haven in heightened volatility
English upbeat about NZ economy, points to headwinds
MARKET CLOSE: NZ shares mixed; Restaurant Brands soars on takeover talk