Mitre 10's annual profit slumps
Wholesale revenue rises 5%.
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Hawke’s Bay
Mitre 10 (New Zealand) had a 92% slump in annual profit, as it spent more on land and rent for future stores.
The cooperative services the Mitre 10 hardware chain.
Profit dropped to $106,000 in the year ended June 30, from $1.4 million a year earlier, according to its financial statements.
Wholesale revenue rose 5% to $708.6 million. Revenue doesn't include actual sales at the stores owned by its shareholders, which rose 10% to $1.1 billion in the year ended June 30.
Distributions paid to cooperative members rose 17% to $67.2 million.
Chief executive Neil Cowie says the drop in profit is due to accounting adjustments and a 22% uplift in occupancy costs to $46.7 million. He also noted the company is "land banking" for future stores.
The value of Mitre 10's land holdings rose to $24.4 million as at June 30 from $10 million a year earlier, while its portfolio of buildings were valued at $18.7 million at the 2015 balance date, down from $19.2 million in 2014.
The fair value of its investment property portfolio was reduced by $1 million to $9.3 million in the year.
Mitre 10 NZ was created in 1974 by owner-operators of hardware stores, from a concept that originated in Australia in the 1950s.
The local business took full control of the brands in New Zealand in 2010 after 50.1% of Mitre 10 Australia was sold to Metcash Trading, which took its ownership to 100 % in 2012. The 10 biggest shareholders of Mitre 10 (New Zealand) own about 70% of the company.
(BusinessDesk)
Suze Metherell
Wed, 04 Nov 2015
Wed, 04 Nov 2015
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Mitre 10's annual profit slumps
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