Wools of NZ partners with Asthma & Respiratory Foundation
Wools of New Zealand says it has chosen to partner with the Asthma and Respiratory Foundation NZ in an effort to educate Kiwis around the health benefits of wool carpets.
Wools of New Zealand (WNZ) has posted its first after-tax profit of $1.48 million for the year ending June 2016, but former chief executive Ross Townshend is keeping up the pressure.
The company’s maiden profit results from a 16% improvement in wool sales, helping lift revenues past $30m for the first time -- to $31.5m, the company says.
Operating profit increased to $681,000, a turnaround of $1.16m from the previous year’s loss of $493,000.
The company sold 5.5 million kg of shareholders’ wool during the year, reflected in an increase in Wool Market Development Commitment (WMDC) income to $2.6m, from $2.2m in 2015.
Commenting on the WMDC, chairman Mark Shadbolt says “at the time of our capital raising in 2012 the WMDC was critical to driving our marketing initiatives and investments. By 2014 we’d reduced our reliance to 20% of revenue and this year this has fallen to 8%, in spite of the WMDC’s increase in real terms.”
But Townsend says the claimed net operating profit includes $2.6m of WMDC “donation”.
“So without that – or in real terms – this is a $2m loss, not a profit. When WMDC runs out mid-2018, WNZ will be broke,” says Townshend who is a shareholder and former chief executive of the organisation.
“The directors need a Plan B, as I stated recently.”
Farmer-led charity, Meat the Need is calling for donations to enable it to supply more meals to families in need.
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
Horticulture NZ chief executive Nadine Tunley will step down in August.