Mondelez NZ reports loss after restructuring

MONDELEZ New Zealand Investments, who owns the closed Cadbury factory in Dunedin, reported a beforetax loss of $17.4 million for the year ended December.

The loss came after the company allowed $47.3 million for restructuring and other associated costs, and compared with a $10.6 million profit for the 2016 financial year.

Mondelez NZ claimed nearly $7.5 million in tax credits to narrow its reported loss to $9.9 million from a $7.6 million profit last year after paying nearly $3 million in tax in the previous corresponding period.

The operating profit was $66 million from revenue of $296.7 million and $230.6 million of costs. The 2016 profit was $55.6 million from $302.5 million of revenue.

At balance date, total liabilities exceeded total assets by $3.5 million. In 2016, total assets exceeded total liabilities by $6.3 million.

In the notes to the financial statements, Mondelez said the ability of the group (Mondelez Investments and its subsidi aries) to continue as a going concern depended on ongoing support of its ultimate shareholder and its ability to assume profitable operations.

Mondelez Australia Pty directors confirmed in the event that Mondelez NZ was unable to pay its $120 million loan to Mondelez Australia, the New Zealand entity would not be required to repay the portion of the loan until it recovered its loan repayment capability. Mondelez Australia would capitalise the New Zealand group for the portion of the debt owed, if the debt could not be repaid timely.

The New Zealand group claimed $38 million on depreciation in the financial year, including costs arising from the changes in the useful life of property, plant and equipment of the Dunedin manufacturing site. Depreciation was $7.5 million in 2016.

Employee remuneration was stated at $35.8 million. Postemployment benefits (including severance payments) reached $18.34 million, compared to $655,000 in 2016.

The New Zealand directors are listed as Amanda Jane Banfield, James Charles Kane, Andrew James York Syme and Morne Pienaar.