Scales’ net profit slips
Agribusiness company Scales Corp said its underlying annual net profit slipped by 7 per cent to $27.6m in 2022, near the top end of previously-advised guidance, with its global protein business mostly offsetting a decline in the horticulture division.
And the company is still evaluating the impact of Cyclone Gabrielle.
The company said there was further outperformance by its Global Proteins business, with a record result, complemented by strategic investments made in Australia.
Lockdowns in China resulted in material reductions in market prices during critical sales windows, especially during the latter parts of the season, adversely impacting the group’s Horticulture results.
Scales’ total revenue came to $619.2 million, up 20 per cent on the previous year’s.
Profit slump for Precinct
Precinct Properties New Zealand made only $600,000 profit in the latest half-year, well down on its $40.7m previous bottom-line profit a year ago.
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The landlord which developed the $1b downtown Auckland Commercial Bay and its PwC Tower released its result today for the December 31, 2021 half-year.
Gross operating revenue rose from $96.9m to $110.2m. Devaluations were mainly responsible for the profit change.
“Total comprehensive income after tax of $0.6m compares to $40.7m for the same period last year, with the difference mainly attributable to the fair value movement across the value of Precinct’s properties of $53.6m recorded in the current period.”
Strong first-half leasing and rental growth drove property income to $66.6m, up 9 per cent on the previous $61.1m.
Vital Healthcare makes after-tax loss
Vital Healthcare Property Trust, with $3.5 billion of Australasian properties, made an after-tax loss of $30.9m as revaluation gains turned to losses.
But revenue rose and so did the total value of assets owned by the business.
In the half-year to December 31, 2022, the trust recorded a $56m devaluations on its real estate compared to the previous $153m gains in the half-year to December 31, 2021.
That was the main reason last year’s interim $170m profit turned into the $30.9m loss.
Revenue rose from $60m to $74m and operating profit was also up from $27.8m to $35m. Assets rose from $3.4b to $3.5b.
But expenses rose too, from $8.7m to $11.6m.
Kiwibank lifts profit
Strong lending growth has helped bolster the first half profits of Kiwibank but its chief executive is expecting a tougher second half ahead.
The Government-owned bank saw its half year net profit rise 53 per cent to $98 million for the six months to December.
Chief executive Steve Jurkovich said the strong first half reflected the resilience of the New Zealand economy but its second half would be dominated by the impact of higher interest rates, rising inflation and the recent extreme weather events.
“Banks have to be able to be resilient to significant shocks, tougher market cycles and conditions. We are ready to do that,” he said.
The bank’s net interest income rose from $416m to $628m while its interest expense was also up from $118m to $242m. It’s total operating income rose from $328m to $415m.
But operating expenses also rose from $232m to $263m.
Credit impairment losses also increased from $7m to $12m.
The bank’s home lending book grew by $600m during the first half while business lending was up $500m.
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