Monday August 25
Auckland future fund appoints Vontobel for $1.3b fund
The board of the Auckland Future Fund has confirmed Zurich-based Vontobel Asset Management as its global investment manager for its $1.3 billion of funds under management. The appointment of the active manager follows an eight month process run by the fund's board, across 21 participants. Vontobel, listed on the SIX Swiss Exchange and majority owned by the founding family, was selected as the preferred provider in June, starting a two month process of compliance and due diligence. The value of the fund, the majority of which comes from the sale of the city's holding in Auckland Airport, sat at $1.31b at end-July. Interest earned across term deposits was $33.4 million since the AIA share sale last December, with an initial distribution to the council for the first six months of $38m.
New Zealand King Salmon CFO resigns
New Zealand King Salmon chief financial officer Ben Rodgers has resigned.
Rodgers, who joined the NZX-listed salmon farming company in 2021, will depart in November.
NZKS chief executive Carl Carrington said: “Ben has made a significant contribution in advancing our organisational and operational capability as the business prepares for transformational growth. Ben’s energy, leadership and mana resonates across the business and puts us in a good space to be rightfully excited for the future.”
Prior to his time at NZKS, Rodgers was deputy CFO at Z Energy and Kiwibank.
Retail growth ‘better than expected’ in June quarter
New Zealand’s retail sector notched slight growth in the June quarter, with gains across some industries.
Statistics NZ today reported the total volume of retail sales rose 0.5% in the June quarter, compared with the March quarter.
Economic indicators spokesperson Michelle Feyen said electrical and electronic goods, grocery, and pharmaceutical retailers had the biggest gains.
Overall, eight of the 15 retail industries measured had higher retail sales volumes.
Westpac senior economist Satish Ranchhod said the June-quarter data was better than expected. “While overall spending growth is still modest, spending appetites are gradually firming, including a lift in some discretionary categories.”
Last week, the RBNZ cut the official cash rate by 25 basis points to 3%, and its August Monetary Policy Statement forecast an OCR low of 2.5%. Many economists think there will be two further cuts this year.
Turners Automotive guides another record half-year
Listed automotive company Turners expects another record half-year result despite the difficult economy putting pressure on consumer spending.
In an update today, it said the business was tracking for earnings growth of 10% or above in the six months ended September 30. Net profit before tax (npbt) is expected to be above the previous record of $26.9m last year.
Turners said trading in the auto retail division was ahead of last year, while the finance business had strong book growth, and insurance also performed well. Meanwhile, for credit management, the struggling economy had resulted in higher arrears.
“While macroeconomic conditions remain patchy, Turners is confident in its growth plan.”
It said it was on track to achieve its full-year target of $65m npbt ahead of schedule.
Profits lower at ASX-listed Endeavour
Jayne Hrdlicka.
Profits at ASX-listed drinks retailer and hotels operator Endeavour Group have fallen by 16% for the 2025 year.
Endeavour, which is waiting for former A2 Milk chief Jayne Hrdlicka to take over as chief executive in January, posted a A$426m ($471m) net profit, blaming cost of living pressures.
The company slashed its dividend by 13.8% to A18.8 cents per share.
Australia's largest bottleshop operator, which owns the Dan Murphy's and BWS brands, reported a slight 0.3% dip in group sales to A$12.1b.
The result was lower than market expectations and Endeavour shares were 1.7% lower at A$4.13 by midday in Australia, valuing the company at A$12.30.
The stock has fallen steadily over the past year, and the 12 month high is A$5.55.
Tuesday August 26
NZ RegCo probes 38% bump in Pacific Edge shares
Listed cancer diagnostics company Pacific Edge says it remains in compliance with its continuous disclosure obligations, after the listed market regulator NZ RegCo enquired about a jump in its share price in August.
A statement from NZ RegCo on Tuesday said that between August 13 and August 25, Pacific Edge shares had increased from $0.102 to $0.141, representing an increase of 38% in less than eight trading days. It asked the company to confirm whether it remained in compliance with continuous disclosure obligations.
In response, Pacific Edge chief financial officer Grant Gibson said that it did.
The company held its annual general meeting on August 7.
NZ Merino reports profit
Merino wool.
NZ Merino recorded improved annual financial results, but a decline in bales sold.
For the year through to the end of June, the wool marketer reported earnings before interest and tax of $1.23 million, up from a $2.63m loss.
The company reported a net profit after tax of $160,000, up from a loss of $3.29m.
As of June 30, NZ Merino had no trade facility debt, down from $10m in borrowings year on year.
About 85,000 bales of wool were sold, down from 115,000 during the previous corresponding period.
NZ Merino chair Kate Mitchell said the result was pleasing after a period of significant challenge in the wool industry, "however, we must remain cognisant of the work still ahead of us."
NZ Merino reported increased market demand and had sought additional supply to meet customer needs.
Shares 7% higher as market cheers Coles result
ASX-listed supermarket giant Coles today reported a 3.1% increase in underlying net profit of A$1.18 billion ($1.3b), powered by core supermarket grocery sales.
Coles shares jumped more than 7% to A$22.21 on the ASX after the announcement.
Although sales at alcohol and tobacco outlets were lower, supermarket revenues were up by 4.3% to A$40b, higher than market expectations. Without alcohol and tobacco, sales were 5.7% higher.
Coles is paying an interim dividend of A32 cents a share, bringing the full-year dividend to A59c against A68c last year.
New bill makes tax system simpler and more effective
A new tax bill has been introduced to help make it easier for skilled people to live and work in New Zealand. Revenue Minister Simon Watts said new migrants were taxed on their estimated overseas income, even if they did not receive it. Under the changes in the bill, they would only be taxed on money they actually earned. The bill would reduce compliance costs for joint ventures by recognising current GST practices.
People exporting power back to the grid from residential solar power would also not be required to pay income tax, in recognition that the compliance burden would outweigh any benefits.
“These practical changes make the tax system simpler and more effective. They remove barriers that hold back investment and growth,” Watts said.
New code of practice for forestry industry
An approved code of practice (ACoP) for the forestry industry has been released by Workplace Relations and Safety Minister Brooke van Velden. She said the code had been developed by the industry, alongside WorkSafe, to address the specific risks the industry faces. Over the past decade, four to five forestry workers have died each year. A forestry worker was 20 times more likely to be killed and seven times more likely to be seriously injured than the average worker. “This new forestry code follows a suite of health and safety reforms announced earlier in the year, which aim to focus the system on reducing critical risk and improve clarity for businesses, with a strong focus on supporting high-risk sectors,” van Velden said.
Zespri proposes job cuts
Zespri is expected to cut about 65 jobs and not replace a further 70 vacant positions.
In an update to the USX, the Kiwifruit marketer said it was proposing changes that could see a reduction or a change in scope in a number of positions, "to better align resourcing with priorities".
"This transition builds on recent developments, including the development of our 2035 strategy, the refresh of our organisational values, and the changes being made to our executive leadership structure. We’re now taking further steps to ensure our resourcing reflects our strategic priorities."
No information was provided on the types of roles that would be affected but the changes were expected to affect some of Zespri's services.
Consultation with staff will begin this week, with completion of the process expected in early October.
Wednesday August 27
For sale: PwC Tower, Auckland
Listed CBD property developer Precinct Properties says it is looking for a "capital partnership" for PwC Tower, at its $1 billion precinct at Commercial Bay. The company recently sold the InterContinental Auckland hotel at One Queen Street for $180m and said a partial sale would let it recycle capital into its Downtown Car Park redevelopment. The developer paid $122m to the Auckland Council for the site in late 2023. In line with that strategy, Precinct also exited its 20% interest in 40 and 44 Bowen Street in Wellington for $48m. Precinct announced the recycling programme after reporting after tax income of $3.1m for the year to June, up on a loss of $30.1m for the prior year. The company's portfolio declined by $27.5m, to $3.2 billion, which it said was in line with "stabilisation" of asset values over the past 12 months. Its capital partnerships across its commercial and residential assets came in at $1.6b. It will pay a fourth-quarter dividend of 1.6875 cents per stapled security.
Wilson Asset Management sells 10 million NZX shares
Australian fund manager Wilson Asset Management has sold more than 10 million shares in New Zealand's stock exchange operator, the NZX.
A disclosure posted to the NZX on Wednesday said Wilson no longer held a substantial stake in the NZX, after it reduced its number of shares to 9,862,760 from 20,333,226. That took its shareholding from 6.19% to 3%.
The NZX last week reported its underlying net profit after tax for the six months ended June 30 was $8.3 million, up 0.9% on the same period a year ago. Operating earnings were up 5.4% to $24.1m, and an interim dividend of 3 cents a share was declared.
The company reaffirmed full-year operating earnings guidance of between $49m and $54m, adding that it was tracking towards the middle of that range.
FMA cancels financial adviser's licence
A financial adviser alleged to have applied for health and life insurance for non-existent people, which resulted in the payment of commissions worth $260,937, has had their financial advice provider licence cancelled by the Financial Markets Authority.
The FMA said on Wednesday that it had cancelled the licence of Les Vela Limited (trading as Wise Insurance) and directed the Registrar of Financial Service Providers to de-register its sole director and shareholder Le Zhou (also known as Eric) from the financial services providers register.
He will be prevented from re-registering for five years.
The action comes after an insurer tipped off the FMA about 15 insurance policy applications submitted by Zhou on behalf of 27 non-existent individuals, resulting in commissions paid to Zhou totalling $260,937.
FMA executive director for response and enforcement Louise Unger said it was seeing an increase in fraudulent activity by financial advisers.
Profits down at Woolworths although NZ operations rebound
ASX-listed supermarket giant Woolworths has reported a 19% fall in profit for the 2025 financial year, posting a A$1.39 billion ($1.54b) net result.
Group revenue was 3.6% higher at A$69b, but slightly lower than forecast.
The New Zealand results were more positive, however, with earnings before interest and tax up a normalised 40.6% to $150m, following a 57.2% fall last year.
“(NZ) sales increased by 3.4% as the rebranding to Woolworths and transformation initiatives continued to resonate with customers,” the company said.
Chief executive Amanda Bardwell said the result was “disappointing,” but then pointed to a A$35m loss at discount department store chain Big W.
Woolworths cut its dividend to A45 cents a share, a big change from 2024 when the final dividend was A57 cents in addition to a special dividend of 40 cents a share.
Sigma posts A$530m profit after Chemist Warehouse deal
Sigma Healthcare, the ASX-listed pharmaceutical distributor and wholesaler which merged with the Chemist Warehouse chain in February, has announced a full year statutory net profit of A$530m ($577m) for 2025.
Shares in the company added more than 5.5% after the result was announced, with the stock trading at A$2.99 in morning trade in Australia.
The gains helped arrest a decline since the shares peaked at A$3.22 shortly after the merger was completed.
The result is 2.1% lower than the profit posted by Chemist Warehouse prior to the merger, but beat the A$522.3m forecast in the prospectus for the deal.
Integration costs of A$12.7m and merger costs of A$46.6m crimped the result.
Sales at the Chemist Warehouse network, which includes 50 stores in New Zealand, were A$6b against A$6.66b last year.
Sigma paid a dividend of A1.3 cents per share, ahead of market forecasts.
Thursday August 28
Hallenstein Glasson reports sales and profit growth
NZX-listed retailer Hallenstein Glasson has reported an 8.1% increase in sales to $470 million for the 12 months through to August 1. Meanwhile, net profit before tax was expected to range between $57.5m and $58.5m, up roughly 11.4% from $52.1m year on year. The balance sheet for the group was said to remain strong with record cash reserves and well-maintained stock levels. Hallenstein Glasson will report full annual results on September 26.
Allied Farmers to exit livestock trading
NZX-listed Allied Farmers has announced it will exit livestock trading and financing with the sale of its 67.8% stake in NZ Farmers Livestock.
The conditional deal is subject to shareholder approval as a major transaction at the Allied Farmers annual meeting in November.
The buyer was named as South Island livestock agency Rural Livestock Ltd.
Allied Farmers said sale price was at an enterprise value of $11 million.
In May Allied Farmers said it would report “materially higher” earnings for the year to June based on a strong performance from NZ Farmers Livestock.
After the sale, Allied Farmers’ sole business will be as manager of NZX-listed NZ Rural Land Co.
Less than half of Vulcan institutional shareholders take up offer
Less than half of Vulcan Steel’s institutional shareholders have participated in its $96.3m capital raise.
The dual-listed company has completed the institutional component of the offer, raising A$59.4m, with 45% of eligible shareholders taking part.
Vulcan’s four large pre-IPO investors did not take up their rights. The company said that if their entitlements were excluded, the take-up rate would have been 75%.
The shortfall entitlements were auctioned off in a bookbuild, with eligible parties receiving A$0.50 for each entitlement sold.
Chief executive Rhys Jones said he was encouraged by the support shown by existing and new shareholders.
The retail portion of the capital raise will open on 2 September. Investors who take up their full entitlement can apply for additional shares, which will be offered for sale in a bookbuild at a price equal to or above the offer price.
Vulcan is raising the funds to support the acquisition of roofing products firm Roofing Industries for $88m.
NZ adds jobs and business confidence rises
Two sets of data paint a slightly improving picture for the New Zealand economy.
Statistics NZ said seasonally adjusted filled jobs rose 0.2%, or 5503 jobs, to 2.35 million filled jobs in July, when compared with June.
The primary industries and service sector added jobs, while goods-producing industries declined.
Meanwhile, ANZ’s monthly business confidence survey rose two points this month to a net 50% predicting better business conditions in the months ahead.
Expected ‘own activity’ fell two points to a net 39%. One-year-ahead inflation expectations eased slightly to 2.6%.
ANZ chief economist Sharon Zollner said its business survey was consistent with the RBNZ’s updated view that the economy needed more support – further interest rate cuts.
“The pain from previous weakness continues to percolate, showing up this month particularly in the sharp drop in reported employment in the construction sector. The recovery will unfortunately not come soon enough for some.”
Foley Wines net loss improves
For the year through to June 30, Foley Wines reported a net loss after tax of $1.86 million, an improvement from the $4.08m net loss reported the previous year. The NZX-listed wine company behind brands such as Difficulty, Roaring Meg, and Clifford Bay, reported total revenue of $70.6m, up from $66.5m.
Case sales for the business rose 9% to 610,000 cases, while revenue from bottled sales rose 6% to $66.38m.
The company's operating earnings before interest, tax, depreciation and amortisation (ebitda) totalled $12.63m.
Foley Wines interim CEO Mike Higgins described FY25 as challenging for Foley but also the broader wine industry.
"Whilst the wider market for packaged wine was down 7% on last year, our case sales were up 9% in the same period, with export case sales up 14.6%. This demonstrates our premiumisation strategy and the company’s continued focus on developing strong routes to market for our brands is delivering results.”
A divided of 2 cents a share was declared.
