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
MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit
Slowing new orders growth weighs on January PMI
New NZ dry dock a basis for new industry - KiwiRail
Wellington Drive beats 2H sales forecast, will meet earnings guidance
NZIQS decides more training is the answer to past president's misconduct
February 15th Morning Report