50% profit tumble for NZ Snack Foods on costs, impairment
BUSINESSDESK: NZ Snack Foods, the private equity controlled owner of Griffin’s, ETA and Nice and Natural food products, posted a 50% drop in annual profit as costs rose faster than sales and it took an impairment charge against one of its brands.
Profit fell to $8.2 million in calendar 2011, from $16.2 million a year earlier, the Auckland-based company's financial statements posted on the Company's Office website show. Sales rose 4.5% to $276 million, while the cost of sales rose 7.2 % to $123 million.
Sydney-based Pacific Equity Partners, which owns 82% of NZ Snack Foods, tried to sell Griffin's last October, having acquired the company from Paris-based Danone for $385 million in 2006. The business has since been taken off the market after a buyer failed to materialise, a PEP spokeswoman said.
Neither NZ Snack Foods, Griffins or PEP would comment on Snack Foods results.
Snack Foods took a $2.5 million impairment charge against its Nice and Natural brand last year, the results show. The muesli, nut and baked bar maker took the charge after a change of supplier of the Strings brand fruit rollups, having determined it would not recover anything from the distribution rights, the notes say.
Other operating expenses rose by 18.2% to $82 million, including a 32% increase to $2.8 million in research and development costs and the Strings charge. Trade receivables that were passed their due date but not impaired almost doubled to $3.1 million.