Nga¯i Tahu posts $150m profit, grows cautious
Solid trading and a $190 million Crown settlement top-up have underpinned Nga¯ i Tahu’s financial performance in the past year.
Excluding the top-up, the South Island iwi’s fishing, property, farming and tourism divisions posted a net profit of $150m for the year ended June 30, providing a dividend of $61m for cultural, social and economic programmes for the 61,000 registered members.
Nga¯i Tahu Holdings chief executive Mike Sang said that after several years of unusual residential rebuilding in Christchurch he was adopting a more cautious approach, given indications of economic headwinds.
While housing demand and supply had equalled out in Christchurch, Nga¯ i Tahu Property had just sold the first house at its subdivision in Hobsonville, Auckland. The 30 properties worth
$332m were fully leased, half of them to state tenants, Sang said.
The Nga¯i Tahu Seafood division had posted its best result from high-value sales of ko¯ura (crayfish) to China, but had decided to quit mussel production because it lacked sufficient scale.
Sang said two investments had proved problematic: the Waikato Milking Systems joint venture with Tainui, on which a loss had been booked but not realised; and the Watson & Son manuka honey operation. The second half of a
$20m write-off in the Watson & Son business was posted in the accounts this year.
Sang said there had been discord over governance and operations, but Nga¯i Tahu had now taken over the production side and the other partner had taken the pharmaceuticals side.
‘‘It will be a two- to three-year journey to profitability. The company will be renamed Oha. We may look at aggregating more hives,’’ Sang said.
Te Ru¯ nanga o Nga¯ i Tahu chief executive Arihia Bennett outlined the initiatives aimed at intergenerational renewal within the tribe. They included assistance into home ownership rather than social housing, and housing for elderly Nga¯ i Tahu.
Te Ru¯nanga o Nga¯i Tahu kaiwhakahaere Lisa Tumahai highlighted the opportunities for tribal members to invest in the Whai Rawa matched savings scheme, which had grown to
$72.3m, an increase of nearly
$10m on the previous year, with more than 25,000 Nga¯i Tahu members contributing.
While the trading net profit was lower than the 2014 and 2016 years, when the $190m is added in it results in Nga¯ i Tahu’s highest ever profit after tax at $273.2m.
Profits were boosted by the sale of some Ryman Healthcare shares, and from joint venture Go Bus increasing its market share.
Logistics operation Hilton Haulage was running smoothly but there were no plans to emulate the global focus of companies such as Mainfreight, Sang said.
Nga¯ i Tahu Farming has yet to optimise its dairy and beef operations, which was reflected in the division’s net operating surplus of $4.56m.
Nga¯i Tahu Forestry had a strong year underpinned by carbon credits, and the forestry team had been brought in-house.
Nga¯ i Tahu Tourism undertook two key developments – the Earth & Sky project at Tekapo¯ , and the new All Blacks Experience at SkyCity in Auckland in partnership with New Zealand Rugby.