Pernod cuts asset value by $119m

Last year Pernod Ricard closed its Hawkes Bay Winery in Napier and shifted those operations to the Church Road winery down the road. Photo / Supplied
Last year Pernod Ricard closed its Hawkes Bay Winery in Napier and shifted those operations to the Church Road winery down the road. Photo / Supplied

French liquor giant Pernod Ricard's local unit widened its annual loss after writing down the value of assets and investments by some $119 million while falling sales and higher costs flattened its margins.

The New Zealand holding company, Millstream Equities, reported a loss of $182.4 million in the 12 months ended June 30, according to financial statements lodged with the Companies Office.

That is up from a loss of $105.3 million a year earlier when it booked a $99 million loss on the sale of local assets including the Lindauer brand.

The liquor company wrote down assets by $19 million and booked a $100 million impairment charge on goodwill in the latest year.

Gross profit almost halved to $39.4 million on an 8.7 per cent fall in sales to $235.9 million as costs were bolstered by under-used wineries and poor weather lowered production.

Last year Pernod Ricard closed its Hawkes Bay Winery in Napier and shifted those operations to the Church Road winery down the road. The move was part of a decision to exit "non-strategic" vineyards and led to a $6 million impairment charge on the company's biological assets.

The global parent injected $715.4 million of new capital during the year, almost doubling the shares on issue and keeping the company's equity positive at the balance date.

The liquor company took a $24.1 million provision for legal claims in the period.

- BusinessDesk

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