Waitaki sees better result

Press, 5 July 1983, Page 30

Waitaki sees better result

Waitaki NZ Refrigerating, Ltd, expects a higher profit this year, in spite of absorbing some large losses. The chairman, Mr E. J. Neilson, said that processing results for the season would produce a most satisfactory result

The season had been a much Uter one than normal and killing was still continuing at some works. Nevertheless it appeared that a record kill for the group, approaching 10 million sheep and lambs, would be achieved, exceeding the total of 9.7 million recorded in the 1980/81 season, he said.

“Had it not been for the prolonged strike at Islington and acute storage difficulties, the target of a 10 million kill would have already been achieved.

“Cattle killing has been

steady, and although the total to date exceeds that of the corresponding period last year, the year-end figure is expected to be similar to that of last year,” Mr Neilson said.

Before the present season began, the NZ Meat Producers’ Board announced its intention to acquire, for a period of two years, all production of lamb and mutton. The company therefore had not been exposed to the same trading risks as in previous years, he said.

“However, a large carryover of lamb .production from the 1981/82 season resulted in inventories at October 1, 1982, remaining at a very high level. This product proved most difficult to sell in a declining United Kingdom market and although stocks were revalued realistically at

year-end, these provisions were insufficient and further trading losses were sustained under a ‘buy back' agreement with the NZ Meat Producers Board. “The company was able to service special markets and maintain its presence successfully in a number of countries where a range of consumer packaged lamb cuts have been introduced. The beef market in the United States was particularly buoyant in the early part of this year and sound results were achieved. Shipments to north America have exceeded last year but prices have remained at a good level. “The company has extended its beef' marketing activities especially into South-East Asia, Japan, and Australia.

“Trading in other pro-

ducts, wool, pelts variety meats, tallow and meals has continued satisfactorily, and provided good returns." In forecasting the results for the full year, Mr Neilson said processing profits should reflect the record kill of sheep and lambs — but trading losses resulting from the sale of the previous season’s lamb would need to be absorbed. Taking all factors into account and having regard to the sale of the Walker shareholding, the directors expected the profit for the year ending October 1 to be ahead of last year, he said. An interim dividend of 10c an ordinary share (10 per cent) would be paid on July 29. taxable in the hands of shareholders. Last year’s interim dividend was 10c a share (10 per cent) of which 8.5 c was .payable from tax-free sources.