Loopholes in our tax laws can result in foreign companies funnelling revenue through countries with low-tax systems -- in effect, a legitimate rort of the tax system.
Ebos Group made the biggest gain, more than doubling its revenue following its $1.1 billion acquisition of Australian pharmaceuticals giant Symbion and boosting its position from 21st last year to 4th this year, trailing only Fonterra, Fletcher Building and Woolworths.
Despite a 5.5 per cent fall in revenue for Spark and a drop from 5th to 7th in the Top 200, they emerged as the most profitable company following a major corporate rebranding and restructuring exercise -- posting a profit of $460 million -- up 93 per cent.
After a paltry profit from ExxonMobil last year of only $1.9 million from more than $2.5 billion in revenue, they have topped the list of most improved profit makers with an increase in excess of 2000 per cent.
Goodman Fielder ended up at the polar opposite of the spectrum, reporting a $201 million loss as the business was prepared for a foreign takeover which was approved earlier this year.
Our largest financial institutions also turned in a strong year, growing revenue by a modest 3.7 per cent -- in line with national economic growth -- but improving their pre-tax profit by 22.9 per cent.
Unlike the Top 200 companies, that growth in profit flowed through to a healthy increase in tax paid -- up 19.7 per cent or $269.2 million.
ANZ remains the largest of the financial institutions by a significant margin, boasting $120.4 billion in assets -- more than 50 per cent above its closest competitor, Westpac.
Deloitte Top 200 criteria
Deloitte's listing of New Zealand's largest organisations includes publicly listed companies required to disclose audited financial statements, including New Zealand subsidiaries and branches of overseas companies. It also includes producer boards, cooperatives, local authority trading enterprises and state-owned enterprises. To be included in the Deloitte Top 200, organisations must operate for a commercially determined profit and be liable for tax on earnings.
Companies fully owned by another New Zealand company are excluded. All figures are the latest available, verified and audited. The initial list is compiled of 240 companies and some rankings reflect the larger pool from which the Top 200 is selected.
• Revenue: as disclosed in the entity's Statement of Income or equivalent. Includes sales (excluding gross commission sales), rent, dividends, share of income from associated companies and interest received.
• Profit After Tax: includes equity accounted profit and profit attributable to non controlling (minority) interests.
• EBITDA: earnings before interest, tax, depreciation and amortisation and impairments of property, plant and equipment or intangible assets.
• EBIT: earnings before interest and tax, includes unusual income and expense items. Not shown for the financial institutions.
• Return On Revenue: calculated by profit before interest and tax divided by revenue. Where no profit figures are shown, this calculation is not applicable as indicated by N/A.
• Total Assets: as disclosed in the entity's financial statements. Includes current and non-current assets, investments, tangible and intangible assets, deferred tax assets and goodwill.
• Total Equity: as disclosed in the entity's financial statements including non-controlling (minority) interests. For New Zealand branches of overseas companies, the amount shown as owing to head office is taken as deemed equity.
• Return on Total Equity/Total Assets: calculated by profit after-tax divided by average total equity/total assets over the past two years. Where an entity is in its first year of operation the current year total equity/total assets figure has been used as an approximate.
• Proprietorship Ratio: Total Equity (see above) divided by average total assets over the past two years expressed as a percentage.
General
• Companies that have operated less than six months are not included in this listing.
• Majority shareholdings greater than 50 per cent by other New Zealand entities are indicated in brackets. A key to these abbreviations follows the listing.
• Not disclosed (N/D) is used where figures were not disclosed by the company or disclosed but not able to be verified.
• An (-) indicates the company was not ranked last year.
Financial Institutions
Includes banks, finance companies, insurance companies (life/fire and general/superannuation). These are ranked on total assets and appear separately. The financial institution results are based o the entity's legal set of accounts and not those accounts which include funds under administration (ie accounts which include assets that are not legally owned by that institution but administered by it).
• Revenue: as disclosed in the entity's Statement of Income or equivalent but not reinsurance revenue (insurance companies).
• Profit After Tax: is shown for information purposes only and no ranking is given,
• Total Equity: as disclosed in the entity's financial statements including non controlling (minority) interests. For New Zealand branches of overseas companies, the amount shown as owing to head office is taken as deemed equity.
• Pre-tax Return on Revenue: calculated by profit before tax (and after interest) divided by revenue. Where no profit figures are shown, this calculation is not applicable as indicated by N/A.
• Proprietorship Ratio: Total Equity (see above) divided by average total assets over the past two years expressed as a percentage.
