In case you missed it: News bites for the week.
Piyush Goyal.
Indian Minister for Commerce and Industry Piyush Goyal and Trade Minister Todd McClay have signed the India New Zealand Free Trade Agreement in New Delhi. McClay said the FTA supported New Zealand’s goal of doubling the value of exports in 10 years. “This deal will deliver thousands of jobs and billions of dollars in additional exports,” McClay said. He said the signing ensured New Zealand could benefit from a Most Favoured Nation clause whereby the better access the European Union has secured for its wine and services would be extended to New Zealand exporters, if the agreement came into force first. Two-way trade between India and New Zealand is currently worth $3.95 billion, but McClay has pointed to growth in trade with China as example of what could happen once the India FTA comes into effect. The agreement eliminates or reduces tariffs on 95% of New Zealand’s exports to India. New Zealand First opposes the deal, but the Labour Party came out in support of the FTA last week.
Fletcher Building has agreed to sell its Reinforcing & Wire business to Singapore-owned competitor United Industries for $15.7 million.
In a statement to the NZX on Monday, Fletcher said it would recognise a loss of $20m to $23m on the deal.
Managing director Andrew Reding said the sale was consistent with its strategy to simplify the group.
“Fletcher Reinforcing & Wire is a well-regarded business with strong brands,” he said.
“However, it is not aligned with our targeted return profile, and we did not see a clear path for it to achieve satisfactory levels of contribution within an acceptable timeframe.”
The Reinforcing & Wire unit sells steel mesh products for use in construction.
The transaction is subject to conditions including Commerce Commission clearance.
United Industries New Zealand parent United Steel Merchants reported a loss of $82m for the year to December 2024, from revenue of $187m.
From tomorrow, the Auditor-General’s two business units – the Office of the Auditor-General and Audit New Zealand – will be merged and renamed the Audit Office. Auditor-General Grant Taylor told Parliament’s finance and expenditure select committee today that 13 people had lost their jobs because of the restructuring out of a total staff of about 500. Taylor said the two business units had technical support staff doing the same job, so once they merged, not all those staff were needed. He said three members of the senior leadership team were among those losing their jobs. Taylor said that by merging the two business units to create the Audit Office, he believed the organisation could do a better job.
Synlait chief quality officer Hila Mory has resigned and will leave the company on July 31. Mory joined the milk processor in March 2025 from Yili Oceania and became chief quality officer in December. Synlait gave no reason for her exit. In a statement to the NZX, chief executive Richard Wyeth said the company had significantly lifted its quality performance under her leadership. “Through this work, Synlait has strengthened its quality and compliance operating model, governance and regulatory readiness, including clearer accountabilities, more consistent standards, and improved risk-based decision making across the organisation. We wish Hila all the best.” Mory’s resignation follows that of chief supply chain officer Robert Stowell in April, on-farm excellence director Charles Fergusson in March, chief revenue officer Naiche Nogueira in October and chief operating officer Paul Mallard last July.
Casino operator SkyCity has warned its profits will be lower than expected this year as customer patronage has been hit by higher fuel prices.
In a statement to the NZX, SkyCity said it was now expecting reported earnings before interest, tax, depreciation and amortisation of $155-$165 million for the year to June, down from previous guidance of $170.6-$190.6m.
The company said trading and visitation had been affected at its Auckland and Adelaide precincts since March, particularly by fuel price rises.
The revised guidance was based on current trading conditions persisting for the rest of the financial year, it said, but “significant uncertainty exists on the breadth and duration of prevailing macroeconomic conditions, and further deterioration in these conditions could affect this guidance”.
SkyCity also said it had reached a conditional deal to sell its Auckland office building at 99 Albert St for a confidential amount and it was looking for a buyer for its newly built Grand Hotel.
Jon Macdonald
Contact Energy has confirmed chair Rob McDonald will step down at this year’s annual meeting, with current director Jon Macdonald to succeed him.
McDonald, who previously served as Air New Zealand chief financial officer for five years until January 2018, chaired Contact from September 2018 after joining the board in 2015.
In a statement to the NZX he said it had been a privilege to serve on the Contact board.
“I am proud of what we have achieved together and have every confidence in Contact’s future. Jon is an outstanding director, and I am delighted that he will succeed me as chair. The company will be in very good hands under his leadership.”
Macdonald joined the Contact board in November 2018 and was previously chief executive of TradeMe. His is also a director of Mitre 10 New Zealand and Kiwibank.
Contact CEO Mike Fuge said the company would miss McDonald’s wise counsel, “but we are pleased to see Jon stepping into the role of chair".
KMD Brands has announced its new chair and the launch of a ‘board renewal’ process.
Sky TV chair Philip Bowman has been elected as chair of the outdoor retailer, taking over from David Kirk.
Bowman was first appointed to the KMD board in 2017 at the same time as Brent Scrimshaw, who now serves as KMD’s chief executive and managing director.
As well as chairing Sky TV, Bowman is also chair of Tegel, and an independent director of an Amsterdam-listed infrastructure company, Ferrovial.
Bowman is also the second-largest shareholder of listed hospitality group, Savor.
Today, KMD also reported non-executive director Zion Armstrong had resigned to focus on his role as CEO of children’s clothing company Jamie Kay.
Kirk, who reported plans to step down in March, will remain on the board until another New Zealand-based director is appointed so KMD remains in compliance with NZX rules.
KMD has begun searching for two new non-executive directors.
Todd McClay
Exports to the European Union have increased by $3 billion in just two years, an increase Trade Minister Todd McClay has credited to the New Zealand-European Free Trade Agreement signed by the previous Labour Government.
“Because the FTA entered into force early, our exporters got an immediate head start with tariff cuts and better access into what is now our fastest-growing major market,” he said.
Exports to the EU reached $8.8b last year, up from $5.7b just two years earlier.
“This growth has significantly exceeded forecasts and expectations and shows what’s possible when we back our exporters and open new doors,” he said.
McClay said making full use of the FTA was vital in times of international uncertainty and supported the goal of doubling New Zealand’s export value within a decade.
New Zealand fertiliser company Tnue (Total Nutrient Use Efficiency) has opened the country's first low-emissions, controlled-release nitrogen fertiliser manufacturing plant in Taupō. Using a proprietary technology, it applies a thin membrane to each fertiliser granule, which causes nitrogen to be slowly released over about three months, instead of all at once. Tnue co-founder Bruce Smith said the plant marked a significant milestone for New Zealand’s agritech sector and its transition to greater efficiency and lower-emissions farming. It came at a critical moment, with supply line disruptions in the Middle East, and farmers facing heightened uncertainty about the cost and availability of nitrogen. In 2023, Tnue received $1.1 million from the Regional Strategic Partnership Fund to help build the plant. Cleantech company Eko360 holds 63% of Tnue, while New Zealand Green Investment Finance holds a 36.9% stake.
Rod Duke.
Sales for the first quarter of Briscoe Group's 2026 financial year rose 1.37% to $180.8 million.
Homeware sales for the 91 days ended April 26 increased 1.98% to $105.7m, while sporting goods sales for the same period rose 0.53% to $75.1m.
Briscoe group managing director Rod Duke described the result as a satisfactory start to the new financial year.
The flow-on effects from the conflict in the Middle East and domestic weather events had affected consumer sentiment and foot traffic, however.
The shift in sentiment had a noticeable impact across the broader retail sector during the latter part of the quarter.
“Should geopolitical tensions continue to ease over coming months, we are cautiously optimistic that the recovery – which was beginning to emerge as we commenced this current financial year – could resume, supporting a return toward a more favourable retail environment through the second half of the year," Duke said.
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