GENERAL FOODS

Press, Volume CVI, Issue 31112, 15 July 1966, Page 16

GENERAL FOODS

Higher Div., Peak Sales (N.Z. Press Association) AUCKLAND, July 14. General Foods Corporation (N.Z.), Auckland ice cream and food manufacturer and distributor, has raised its dividend from a forecast 10 per cent to 11 per cent and added a 1 j per cent bonus for the year to April 30. Group profit before tax jumped 45.7 per cent from £751,774 to £1,095,000. This figure is subject to audit, directors say in their preliminary announcement. The bonus dividend of 11 per cent is to mark the fact that pre-tax profit exceeded £lm for the first time. Sales increased £877,000, or 12.2 per cent, to a record £8,089,000. ■ The company is beginning to reap the benefits of consolidation of its operations after the series of take-overs in the last six years. Economies The resultant economies are evident in the figure now available, they add. Last year, the company provided for £364,368 tax, leaving a net profit of £387,406. Although this year, no doubt, there will be some tax relief through the investment allowance, even tax at the rate of 50 per cent would leave a net profit of £547,500, an increase of about 41 per cent. Earning rate on capital increased by £llO,OOO to £2,037,360 in the Bluebird Potato Chips take-over, would be at least 26.9 per cent, compared with 20.1 per cent last year. The basic rate of 11 per cent equalled 13.2 per cent on capital before last year’s two-for-10 bonus issue, compared with 12.2 per cent paid last year and 11 per cent in 1964.

Final 6 per cent and 1} per cent bonus dividends are payable, on September 30; ex dividend September 17.