By PHILIPPA STEVENSON agricultural editor
Kiwi Dairies is hailing its most successful year after making the leap from regional to national company following the merger with Northland Dairy.
In the annual report released yesterday, chief executive Craig Norgate said Kiwi recorded an excellent performance across the board, for the first time in
his eight years with the company.
"The results reflect the outcome of the significant investments made over the past few years in manufacturing and marketing assets, and in people," said Mr Norgate, whose own salary rose by $210,000 to $880,000.
Benefits from the merger of Kiwi, historically centred in Taranaki but with plants and subsidiaries in the South Island, and Northland, with plants at Whangarei and Maungaturoto, were on track to deliver more than $10 million a year to the combined company, he said.
The December merger, which created the country's second-biggest dairy company with 37 per cent of milk supply, was low risk because it occurred without significant capital expenditure and was effectively behind the company.
Kiwi's payout to its 5700 suppliers for the 1999-2000 season is $3.82 per kilogram of milksolids, with the company providing 47 cents above the Dairy Board base of $3.35.
Chairman Greg Gent said factors contributing to the payout included a 15 per cent increase in milksolids, and an outstanding manufacturing performance.
Group turnover increased 47 per cent to $2.6 billion from $1.75 billion in the 1998-99 season.
The local market chilled foods subsidiary, Mainland, increased turnover by 17 per cent to just over $637 million from $542 million.
The group's equity ratio rose to 51 per cent from 45.6 per cent, and assets were just over $2 billion, up 27 per cent from $1.6 billion.
