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Pernod Ricard doubles profit

NZ Newswire logoNZ Newswire 22/12/2016 Rebecca Howard

Pernod Ricard's New Zealand has reported an annual profit that more than doubled but warned it was still assessing the financial impact of last month's Kaikoura earthquake.

The liquor group's Millstream Equities posted a profit of $7.4 million in the year ended June 30, from $3.6m a year earlier as revenue rose to $241m from $228m. Its total operating expenses were $19.6m versus $10.1m in the prior year, reflecting higher management fees, repairs and maintenance. Tax cost also rose.

Millstream Equities, which manufactures and sells wines and spirits, says its accumulated losses now stand at $828m versus $835m in the prior year. No dividends were declared.

It noted the November 14 earthquake had resulted in damage to its Blenheim winery that is subject to an insurance claim.

"The financial impact of the earthquake is still being assessed and cannot reliably be measured at this time," it said.

In late November, then Economic Development Minister Steven Joyce said the industry was "facing some challenges" after the earthquake. Mr Joyce, who is now finance minister, said the main impact was to around 20 per cent of wine storage tanks in the region.

Wine exports reached $1.6 billion in the 12 months to November and are currently New Zealand's seventh-largest export.

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