is in the detail...
SUMMARY REPORT 2012 Foodstuffs South Island Limited
CONTENTS Directors and Executive Team .....................................................
2
About Us ......................................................................................
4
Annual General Meeting ..............................................................
5
Chairman’s Review ......................................................................
7
Retail Review ................................................................................ 14 Food for Thought ......................................................................... 20 Foodstuffs (South Island) Community Trust ................................ 21 National Progress Report ............................................................ 22 Executive Team ............................................................................ 26 Independent Auditor’s Report ..................................................... 29 Foodstuffs South Island Limited Group Financial Statements .................................................................... 32 The Network ................................................................................. 36
Foodstuffs South Island Limited | Annual Report 2012
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DIRECTORS (left to right) Robin Brown New World Rangiora (Chairman)
John Niles Four Square Owaka (Deputy Chairman)
Chris McDonald PAK’nSAVE Dunedin
Kevin Ryan New World Alexandra
Stephen Boock PAK’nSAVE Northlands
Roy Bridgman New World Rolleston
Marcel Gray PAK’nSAVE Wainoni
Russell McKenzie New World St Martins
SOUND EXECUTIVE TEAM (left to right) Steve Anderson Chief Executive Officer
Alan Malcolmson General Manager Retail Operations
Kim DeGarnham General Manager Administration & Members’ Services, Company Secretary
John Mullins General Manager Supply Chain
Phil Wright General Manager Information Technology
Malcolm Wratt General Manager Finance
Roger Davidson General Manager Property & Retail Development
Philip Lemon General Manager Trents Wholesale Limited
LEADERSHIP
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ABOUT US Foodstuffs South Island Limited, is a South Island, 100% New Zealand owned co-operative, formed in 1988 from the merger of two longestablished grocery co-operatives Foodstuffs (Christchurch) Limited and Foodstuffs (Otago/Southland) Limited. Foodstuffs South Island Limited, whose membership consists of independent grocers who own and operate their own businesses and work together for their mutual benefit and the benefit of the co-operative, trades only in the South Island of New Zealand.
banner Group, independent grocer
Over recent years, the foodservice
or foodservice members.
industry and the number of
These members recognise that shareholding in the co-operative
customers/members involved in that industry have grown
confers on its members the right
dramatically. These people trade
to enjoy the benefits of the co-
with our wholly-owned subsidiary,
operative and the shares are
Trents Wholesale Limited. This
not held as a form of investment
subsidiary was specifically created
in equity shares. As such, our
to service this sector of the South
members are caretakers of the
Island economy and now has a
co-operative and its assets. They
strong South Island-wide customer
have a responsibility to hand them
base. Trents trade via seven
on to enable future generations of
Cash’nCarry sites throughout the
grocers to trade.
South Island or through one of our
It has two sister co-operatives, Foodstuffs (Auckland) Limited and Foodstuffs (Wellington) Co-operative Society Limited, which trade in the northern and southern sectors of the North Island of New Zealand.
The co-operative is principally
Trents distribution partners.
The three co-operatives are independent of each other and have their own boards and executive structures.
operative and paid for by deferring
The three co-operatives jointly own Foodstuffs (NZ) Limited, a small non-trading entity, which represents the three co-operatives’ interests on issues of national or grocery specific importance. They have also jointly entered into a purchasing Group with an Australian grocery wholesaler to achieve economies of scale for the purchase of housebranded products. Currently, Foodstuffs South Island Limited has a membership of 603
funded using Retained Patronage Shares (previously five-year Redeemable Preference Shares). These shares are issued to our members in direct ratio to their last year’s trading with the co-
Many of our grocery members lease their supermarket or shop premises from the Company which, in turn, is the registered proprietor or holds the head lease of the property concerned.
the physical payout of the year-end
The Company offers a substantial
rebate of profits until each tranche
degree of assistance to its
of shares is redeemed.
members as well as its core
Our membership generally falls
activity as a wholesale merchant.
in two categories; independent
These ancillary activities include
grocers trading as members of one
the marketing of their business
of our banner groups:
and products, industry-related
• PAK’nSAVE food warehouses
training and education, food safety
• New World supermarkets
programmes, business services,
• Four Square supermarkets
merchant guarantee funding
• On the Spot convenience stores • Henry’s Beer, Wine and Spirits; or members who trade independently of these groups in the convenience grocery or foodservice industries.
arrangements with major banks, and, at-call deposit facilities for trading members, former members and related parties.
ANNUAL GENERAL MEETING The 24th Annual General Meeting of Shareholders of Foodstuffs South Island Limited will be held on Tuesday, 24 July 2012 at the Dunedin office of the Company, Midland Street, Dunedin at 5.00pm.
Ordinary Business 1. To receive, consider and adopt the Directors’ Report, Group Income Statements, Statements of Comprehensive Income, Statements of Changes in Shareholders’ Equity, Balance Sheets and Audit Report for the year ended 29 February 2012. 2. To receive the results of the postal ballot conducted to elect three directors. 3. To fix the remuneration of Directors for the ensuing year. 4. To record the appointment of KPMG as Auditors and authorise the Board of Directors to fix the remuneration of the Auditors for the year to 28 February 2013. 5. To transact any other business whether by ordinary or special resolution that may be properly transacted at the Annual General Meeting. ‘A’ and ‘D’ Shareholders have the right and are entitled to attend and vote at the meeting. These members may appoint a proxy to attend and vote on their behalf. A form of proxy may be obtained from the Secretary. The completed proxy form must be deposited at the registered office of the Company not later than 48 hours before the time of the meeting. A proxy holder need not necessarily be an ‘A’ or ‘D’ Shareholder of the Company. Dated this 12th day of June 2012. By order of the board
K N DeGarnham Company Secretary
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A HELPING HAND
CHAIRMAN’S REVIEW On behalf of the Board of Directors of Foodstuffs South Island Ltd, I present to you the 24th Annual Report detailing our activities, highlights, challenges and financial results for the year ended 29 February 2012. New Zealand’s economic outlook is currently more complicated than at any time in our recent history. Reflecting on the financial year 2011/12 we noticed that the New Zealand economy was still affected by the uncertainty that has gripped the global markets brought on by the European sovereign debt crisis and the Canterbury earthquakes. During the last half of the reported period, consumer confidence in New Zealand started to slip due to a barrage of negative news regarding the global economy, weakening of our labour market, rising fuel prices and the trend of constant rising costs for some core staples; on the positive side is the improvement in our property market.
• ensuring our commercial buildings in Christchurch adhere to the new building code, • delivering on each banner Group’s brand promise, • renewing focus on the in-store shopping experience, • the introduction of invoice scanning and workflow to manage members’ charge through invoice matching. (This new technology has eliminated the manual entry of thousands of invoices each month), • streamlining the rollout of SAP into stores, • refurbishment and expansions of several retail properties, and • actively planning and preparing for our new high-tech distribution centre (DC). During the reported year, Foodstuffs South Island Ltd achieved a strong financial result. Revenues were up which is an excellent result considering the difficult trading conditions retailers experienced
Against this background of the lacklustre economic performance of the economy, our co-operative again had a good year despite having to overcome various challenges. For Foodstuffs South Island, the earthquakes have been debilitating events with profound human and economic impacts that will be felt for many years.
throughout New Zealand.
Consequently, in the year under review the co-operative strived to dedicate time, effort and energy to: • rebuilding our earthquake damaged properties whilst dealing with the on-going insurance issues, • supporting our members who have been adversely affected by the earthquakes in areas such as supply, water, insurance, etc.
stores both experienced lift in trade.
Our major banner groups, given the circumstances in the past 12 months, traded strongly. This was achieved despite the closure due to the Canterbury earthquakes of three of our New Worlds, one Four Square and one Henry’s Beer Wine and Spirits. Four Square and New World For New World and PAK’nSAVE, there was a change in trading patterns due to the closure of various stores after the earthquakes. PAK’nSAVE stores’ trading was patchy due to the impact of the earthquakes – some stores were adversely affected whilst other stores were advantaged. Four Square‘s results can to some extent
be attributed to the earthquakes, and the re-enforcement of their rural supermarket profile combined with a much improved range of packaged meat, produce and bakery products. Since starting in 2010, our Produce Distribution has been going from strength-to-strength with nearly all the New Worlds totally committed and the PAK’nSAVEs supporting it where feasible. The key objectives for establishing this Produce Distribution was to get a better level of consistency in pricing to stores, to improve the supply chain from grower to customer, and to reduce freight costs for our members. These objectives have been met. In December 2011 we received a letter from Canterbury Earthquake Recovery Authority (CERA) requesting a detailed engineering structural assessment of the Murdoch Manufacturing and Trents buildings. The tower’s structural integrity was found not to be compliant to the revised building code and we had to relocate Trents’ staff, Accountancy Services, Membership and Credit Control along with a section of Murdoch Manufacturing. Our repack operation was relocated to our Sockburn site; the soft drinks section and its associated storage area was declared safe for operation and continues to operate from the Papanui site. Trents Wholesale Ltd, our specialist food and beverage sector company, traded well despite their customers being hit hard by the earthquakes. Last year, they set about redefining their strategy and focussing on opportunities for national customer growth, which resulted in an increase in retail sales despite many
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PRODUCT RANGE
CHAIRMAN’S REVIEW customers being unable to continue to trade. In August 2011, Trents Wholesale Ltd extended their distribution capabilities into the foodservice chilled and frozen product range by acquiring Glacier Chilled Foods in Nelson. This enabled Trents to become a ‘one stop shop’ for their Nelson/Blenheim customers.
Group Sales and Profitability The co-operative has recorded solid revenue growth, up 4.0% or $92m for the year. Financial performance has also been strong, with Operating Profit of $239.4m reported, which is just over $20m higher than last year. There are a number of issues in this year’s financial statements which are worthy of further explanation, in particular the accounting for the earthquakes, deferred tax on building fit-out and the application of accounting rules on planned distributions to members. 1. Earthquakes. Operating Expenses include a one-off $14.7m of earthquake related costs incurred by the co-operative this year as well as $0.8m being the expected excess cost. Other Income includes $15.8m recognising the insurance money which has been received or expected to be received relating to this financial period. Other Income also includes a further $20.9m of earthquake related money which has, or is expected to be, received from insurers. This amount represents the difference between the replacement cost of buildings which have, or will be, demolished
continued due to earthquake damage, and the depreciated values that these buildings were recorded at in the co-operative’s accounts. This one-off increase in value has been recorded in Operating Income and will therefore flow through into Operating Profit for the year. 2. Taxation. A $6.0m deferred taxation provision has been recorded this year in the income statement. This provision is similar in nature to the entry made last year ($35.3m) when the government announced the removal of tax depreciation for buildings. Inland Revenue recently announced a draft ruling which would mean the co-operative cannot claim tax depreciation on its building fit-out assets as well. While the co-operative does not agree with the IRD’s draft position, for the purposes of the financial accounts it has recognised the deferred tax provision that would be required under International Financial Reporting Standards. The entry is a non-cash, accounting provision only, and as such the Board has decided it will not affect the level of rebates declared this year. 3. Recognition of Planned Distributions. Your Board has decided that in light of the record profit this year, there will be a special one-off 2012 Redeemable Preference Share and Dividend issue. Since this is a one-off distribution that could only be declared after 29 February when the profit for the year was known, it cannot be recorded in this year’s Financial Statements, and so is only disclosed by way of note
(see Note 7 and 29 of the Financial Statements). This does not affect the share issue or dividend, it simply means it will be recorded in the 2012/13 financial accounts rather than this year.
Distribution to Members Total value of distributions to members this year is $234.8m, an increase of $19.3m or 9.0%. We have continued our practice of paying monthly rebates, based on bulk and repack purchases during the year, and distributing these and supplier driven rebates directly to members during the year. In total, $148.8m will be distributed to members in this manner. Year-end rebates will total $54.8m and be distributed in three main ways. • Firstly, there will the Loyalty rebate totalling $42.8m, which will be issued this year through a combination of Retained Patronage Shares and cash dividends. Forty million shares will be issued, with a specified value of $1.00, partly paid up to a value of 94.5 cents per share. A 12.5 cent dividend will be paid immediately after these shares are issued, with 5.5 cents being used to fully pay up the share to its specified value of $1.00, and the remaining 7.0 cents paid as a cash dividend. The 12.5 cent dividend will be issued fully imputed. • Secondly, there will be the payment of two cash rebates totalling 2.0m. The Produce rebate will be based on ex-warehouse Produce purchases and will be paid at a rate of 3% on qualifying sales. An IT Leasing rebate will also be paid out of profits
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CHAIRMAN’S REVIEW made on the IT Leasing scheme and distributed pro-rata based on members’ IT leasing charges. • Thirdly, there will be special $10.0m Trading Deposit rebate issued. This rebate will be distributed to members based on their qualifying sales for the year ended 29 February 2012 and will be directly credited to members’ Trading Deposit Account. Any amounts in excess of the required two weeks Trading Deposit or owing to exmembers will be paid into their At Call deposit accounts. In addition to the year-end rebates, there are $5.4m of dividends on RPS shares which will be paid out fully imputed. The Board has also decided to pay a dividend on the Trading Deposit Shares held by members. This dividend will be at the same rate as the RPS shares (3.67% fully imputed) and equals $0.8m in total. Lastly, this year the co-operative will also be making a special, one-off distribution in the form of a 2012 Redeemable Preference Share issue. 13.5 million Redeemable Preference Shares will be issued, with a nominal value of $1.00 and paid up to 1.0 cent. A 104 cent dividend will be paid immediately after these shares are issued, with 99 cents being used to fully pay up the share to its nominal value of $1.00, and the remaining 5 cents paid as a cash dividend. The 104 cent dividend will be issued fully imputed. The shares will be allocated to members based on eligible sales for the six-month period of March to August 2010, which is the period immediately preceding the September 2010 earthquake. The Board’s
continued intention is for this one-off profit distribution to those members who were trading with us leading up to the earthquakes which greatly affected the assets of the co-operative.
Rebates and Dividends In summary, this year’s total rebates and dividends to members are; Bulk and Repack rebates Supplier rebates Monthly cash rebates
$132.2m $16.6m $148.8m
2012 Retained Patronage Shares and Dividend
$42.8m
2012 One-off Redeemable Preference Share issue and Dividend
$14.2m
Produce rebate
$1.0m
IT Leasing rebate
$ 1.0m
Trading Deposit rebate
$10.0m
Dividends on RPS and Trading Credit shares Total Dividends and Rebates Imputation Credits Total value of distributions to Members
$6.2m $224.0m $10.8m
$234.8m
Information Technology The Valentine Project and SAP were the main focus for the Group during the year with the continued rollout into retail and the major service pack upgrade in October 2011. It is pleasing to report that the IT systems proved very robust during the earthquakes as they stayed operational and provided accurate data which greatly assisted decision making processes during the aftermath of the earthquakes. Other major initiatives throughout the year have been: • Self checkout • GS1net and eCommerce enablement • Essential IT infrastructure upgrades • Website and online presence • Produce • Invoice scanning
Project Valentine/SAP The retail rollout has progressed well as stores moved from project into business-as-usual mode. At the end of the financial year, 30 stores were on full SAP with 21 stores in various phases of implementation. Rollout has commenced to our Henry’s Beer Wine & Spirits stores and our Four Square stores and, by the end of the financial year, we had 2 Henry’s on full SAP and 6 Four Square’s on Module 1. Foodstuffs and owner-operators are realising the benefits of the system where ongoing system optimisation and fine tuning has delivered improved benefits.
EFTPOS compliance The project to upgrade our pin pads at retail stores to meet the industry compliance standard were completed mid 2011. This project technology was very challenging as the upgrade encountered technical difficulties in the supplier network. Once the technical problems were resolved, the pin pads performed very well demonstrating faster response times for chip cards. A by-product of the project has been a development of service-quality reports which have been useful to monitor performance.
Retail Development The year under review has been a particularly busy year and has seen Foodstuffs (South Island) Properties Ltd focus on the establishment of New World Ilam, several refurbishments of company-owned retail properties and the rebuilding of damaged supermarket premises. New World Kaiapoi was damaged beyond repair in the September 2010
earthquake and it was a significant achievement to have this store open and trading in December 2011. New World Ilam was opened on the 17th of November and is the first large New World to be established in the Christchurch metropolitan area since 2003, and sets a new benchmark for existing and new stores to aspire to. New World Northwood’s floor area increased by 60% and incorporated many of the new features established in New World Ilam, highlighting that even with refurbishments, existing stores can lift their presentation to a new level. The work at New Worlds Ilam and Northwood allowed the company to develop the “coffee to go” concept as in previous stores and to create a purpose-built café which has been favourably received by customers. The format of polished concrete floors and open ceilings has proven to be well-suited for New World Ilam and this same format will be incorporated into the rebuild of New World St Martins. Other projects completed during the year were the refurbishment to the exterior of Amberley Four Square and a cosmetic upgrade to New World Rolleston. The year ahead will be busy for the property team, and the challenge for them will be to ensure Foodstuffs remains at the forefront of food retailing in the South Island by identifying and obtaining the best locations for new stores, or expanding the company’s presence by upgrading existing stores ensuring an exciting shopping experience for customers. Major projects underway are; • the rebuild of New World St Martins and Redcliffs which both had to be demolished due to being damaged beyond repair in the February 2011 earthquake, • the building of our 10th new
PAK’nSAVE in Blenheim, • the refurbishment of New World Windsor, • extension to PAK’nSAVE Dunedin, and • most importantly, the building of our new state-of the art distribution centre covering 38,000 square metres in Hornby.
Supply Chain Over the reported year, our Supply Chain division’s main focus was on the planning of the new Hornby distribution Centre with construction started in April 2012. The project team is now fully focused on product location, materials handling equipment requirements, yard area and vehicle movement volumes. On completion of this phase, work will commence in earnest on the threestage staff and inventory transitional period that will cover the months of March to July 2013, resulting in the final closure of the Papanui distribution centre. TSI Logistics has had a good year of growth with new Foodstuffs inbound business, an enhanced management structure, and with the recent takeover of the Transotway fleet and drivers in November 2011. We have continued to improve the financial reporting of the TSI company as it is important we retain visibility on the margin retained from our inbound freight network, along with the cost to serve of our outbound volumes.
Administrative In 2011, Foodstuffs South Island achieved a tertiary level certification from ACC. Achieving the tertiary level is not easy and the co-operative acknowledges that this shows our commitment to the reduction of work injuries and our dedication to
rehabilitation of not only staff with work injuries but also for non-work and medical-related issues. Over the same period, Hornby Chilled and Frozen distribution centre achieved 500 consecutive days with no lost time due to injury. This achievement was the first time one of our DCs has attained this target. Given the earthquake disasters in Christchurch and the resulting impact on local businesses, our credit control department has done an outstanding job working closely with Trents Wholesale staff, members and customers to ensure that this year’s bad debts were kept to a minimum.
Summary I would like to reiterate that our co-operative has delivered a strong financial result for the 2011/12 financial year. This outcome was made possible by the concerted efforts involving our members, the Board of Directors; our management – in how they handled the various challenges and in some instances turning them to our advantage; and most importantly, all our staff for their devotion and unrelenting hard work. It is with gratitude that I thank my fellow Directors, Foodstuffs’ management, staff and members whose help and commitment assisted us through this tumultuous year.
Robin Brown Chairman
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RETAIL EXPERIENCE
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every day a NEW WORLD In light of another challenging year with the ongoing impact of earthquakes, the New World Group performed very well with strong growth in sales and market share including a record Christmas trading period.
The brand continues to innovate with new marketing, promotional, product development, and loyalty campaigns delivered at store by a passionate group of local owner operators and their staff.
In Christchurch, the brand has led the way with the opening of New Worlds Ilam and Kaiapoi along with a number of markets reinvesting in total store refurbishments. This year provided opportunity for various approved operators to purchase larger stores, creating an opportunity for experienced individuals who went through the approved operators programme to enter and become part of the New World Group.
The ongoing rollout of the SAP project is providing stores greater insight to the supermarkets’ businesses which will lead to more informed decision making to ensure New World remains New Zealand’s most loved supermarket.
everyday low prices at PAK’nSAVE The PAK’nSAVE Group continued a steady trading year despite the damage to two key stores in the Christchurch area from the earthquakes. Sales in provincial areas gained shortterm benefit from earthquakes in Christchurch during the first half of the year. Earthquakes in June and December caused more stock losses, however, all stores recovered operation rapidly to provide their customers with much-needed grocery items. The Group initiated a number of new promotional strategies and strategic objectives during the year which contributed to the delivery of new offers to the consumer whilst emphasising the Group’s low price position. ‘Stickman’ continues to be used nationally to deliver the brand message and has been used in a number of innovative promotions to deliver the
Group’s key price message. “1987 prices all over again” was an example of how this was executed during the Rugby World Cup. The Group continues to ensure customers are offered the lowest prices on everyday products with a strong shelf and promotional pricing programme. PAK’nSAVE owners have continued to invest in their stores in the past year with new plant, lighting and ongoing work on flooring to ensure high instore standards are met. The PAK’nSAVE Group completed a fabulous milestone by fully implementing SAP into all stores by the end of 2011. The Group is already using the benefits of SAP with integrated reporting and benchmarking to improve overall performance.
FRESH FOODS
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... WHERE YOU’LL FIND ALL YOUR KIWI ESSENTIALS PLUS A FRIENDLY WELCOME AWAITING YOU.
FOUR SQUARE We are pleased to report that The Four Square Group has had an excellent trading year achieving a sales growth for same stores of 5.99%. The earthquakes played a significant part in the Group’s growth and, although this was shared throughout the South Island, the North and MidCanterbury stores, in particular, had exceptional increases. The Group took on the challenge to “Raise the Bar” and this was the direction and focus promoted across all aspects of the members’ businesses.
• • •
• •
produced and rolled out, participation instore with the theme of Rugby World Cup, a successful SAP pilot for five stores with module 1, a five-year strategic plan was approved and presented to the members, the launch of a national Four Square web site, and sponsorship of three new St John Health Shuttles to the value of $345,000.
Highlights for the year included: • six new TV commercials were
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TRENTS Wholesale Ltd Despite losing about 360 customers due to the earthquakes, lack of tourism, and the Rugby World Cup being played mostly in the North Island, Trents Wholesale Ltd still managed to deliver a strong result in what was the most challenging trading year the subsidiary has ever experienced.
Highlights during the reported period were: • The key highlight was the purchase of Glacier Chilled and Frozen in Nelson which provides Trents with the opportunity to develop their knowledge and expertise within the foodservice ‘Chilled and Frozen’ category. Trents is pleased to
acknowledge that Glacier Chilled and Frozen has made a significant market share gain in their first six months of operation. • The rebranding of our On the Spot Express and On the Spot convenience stores has started and is progressing well. Stores that have been upgraded have been very well received by customers and suppliers. • The successful integration of the National Prisoner Ration supply initiative throughout the country.
HENRY’S beers, wines & spirits The Henry’s BWS Group continues to consolidate and prosper in the South Island. The 2011-12 year was very challenging for the Group with our New Brighton store being closed permanently as a result of the September and February earthquakes. Moorhouse and Barbadoes stores were both closed for several months but are now fully renovated and operating successfully. The number of stores is currently 17 with another store scheduled to be opened later this year in Yaldhurst, Christchurch. The Rolleston store has completed a significant extension and several other stores have completed or are planning upgrades of their flooring.
The Group continues to look for opportunities to expand throughout the South Island. In October 2011, Henry’s Te Awamutu was opened and this significant occasion was the first Henry’s store in the North Island. Fly Buys continues to develop under the Henry’s brand and is now emerging as a very strong sales tool as customer awareness grows. The Henry’s website has developed to be a very important marketing tool for the Group. The Group has achieved very good sales and customer growth during the last financial year and continues to enhance its reputation within the traditional liquor market.
A FRIENDLY SMILE
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FOOD for thought Food for Thought is our community health and nutrition programme which is delivered free to year 5 and 6 primary school students in New Zealand at the schools’ request. The Food for Thought Trust employed a fourth nutritionist in 2011 to cover the increasing requests for the programme. Schools have been eager to jump on board with Food for Thought, and once they have received the programme, teachers are very enthusiastic to continue year after year. Earthquakes in Christchurch caused many schools to close for several weeks. This meant some
cancellations of the Food for Thought programme and as the schools in the Christchurch region already had a full year’s programme it became a challenge to re-engage them and deliver. The collaboration between the Food for Thought Education Trust and the National Heart Foundation has been a logical and smarter way to work. The support and referrals from the Heart Foundation as well as public health nurses, public health workers and Health Promoting Schools advisors has been fantastic. This year 10,188 students participated in the Food for Thought programme.
Foodstuffs (South Island) COMMUNITY TRUST The Trust is pleased to report another successful year for the Foodstuffs (South Island) Community Trust.
Major Sponsorship The Trust is continuing a successful partnership with the St John Friends of the Emergency Department (FEDs’) programme. The current services the Trust is assisting with are; • FEDs, Hospital Friends – a service that is provided in smaller hospitals where volunteers chat and give assistance to patients and relatives in nominated wards, • Hospital Hosts – where volunteers are based in the foyer area supporting patients and visitors. These services are currently operating in Nelson, Wairau, Christchurch, Timaru, Oamaru, Dunedin and Invercargill. There are 230 volunteers contributing 30,700 volunteer hours.
First Foundation This year, the Trust has taken on sponsorship of Carly Martin from Linwood College, and continues to support the development of Hannah Davidson from Dunedin, and Emma Muir who completed her 3rd year at Canterbury University. As the First Foundation grows, several businesses were keen to support students but did not have the infrastructure to train and employ these young people throughout the year so PAK’nSAVEs Northlands and Riccarton and New World Rangiora offered to assist three more students. Our Training team is assisting facilitating these scholarship recipients to enable them to develop their various skills over the next 3 to 4 years.
Milestone The Trust was incorporated in July
1998 and, each year, our sponsorship continues to grow, enabling the Trust to assist more community groups and individuals requiring assistance. It is with pleasure we report that in October 2011 the Trust hit $2m in total sponsorship since incorporation. Well done to members in supporting their local communities!
Grants This year, the following grants were distributed to groups and individuals in the South Island community: Educational Grants $70,900 Community Grants $360,732 The Trustees continue to monitor the Canterbury region to assist community groups starting up after the settling down period of earthquakes.
At the end of the year, the Trustees tweaked the sponsorship levels to allow for some of our smaller Banner Group members to come on board with the Trust and enable greater opportunity to reach those smaller communities in the South Island. The new levels are; • Platinum • Gold • Silver • Bronze
Sponsors During the year, we welcomed seven new sponsors and three supporters.
New Sponsors • DS & CM Howard Limited – PAK’nSAVE Richmond • SC & JD McDonald Limited – PAK’nSAVE Riccarton
Resignations On behalf of the Trust, I would like to thank Shaun Ryan (NW Mosgiel), Barry Gray (NW Halswell), Peter Harman and Brenda Rutledge (NW Stoke), and Ross and Jan Parry (NW Gardens) for their past financial contributions and wish them well in their future endeavours.
Trustees
Sponsorship
New Supporters John & Jane Mullins Arron Perriam Roger & Heather Davidson
• LB & SF Murray Limited – New World Waimate • Kelvin Gray Limited – New World Halswell • JK Supermarkets Limited – New World Northside • PCNW Limited – New World Port Chalmers • RC & PJ Flannery Limited – New World Kaikoura
Jan Parry of New World Gardens resigned as a trustee on the sale of their business. The Trust would like to thank Jan for her tireless effort as trustee for the last 7 years. Justin Smith from New World Oamaru has volunteered his time to serve the Trust as a trustee. In summary, the Foodstuffs (South Island) Community Trust is operating well and I am appreciative of all our sponsors; existing, new, and those who have upgraded their contributions during the past year. The Trust and trustees thank Foodstuffs personnel for their assistance, KPMG for their voluntary auditing of accounts and, once again, all our sponsors.
Chris Griffin Chairman Foodstuffs (South Island) Community Trust Foodstuffs South Island Limited | Annual Report 2012
21
NATIONAL PROGRESS REPORT The year ending February 2012 was another busy one from a property development perspective, with new stores opening and a large number of store refurbishments. During the year, New World stores were opened in Tokoroa, Stonefields in Auckland, the Auckland CBD (Metro), Churton Park in Wellington, Kaiapoi, and Ilam in Christchurch. New PAK’nSAVE stores were opened in Kaitaia, and Papakura, and a new Four Square store was built at Cooper’s Beach in Northland. Extension and/or refurbishment projects were completed at the New World stores at Victoria Park in Auckland, Brookfield in Tauranga, Island Bay in Wellington, Broadway in Palmerston North, Northwood in Christchurch and the township of Rolleston. A refurbishment project was also completed at Wairau Road PAK’nSAVE on Auckland’s North Shore. The Aramoho and Cloverlea Four Squares were extended and refitted to align with brand standards, while other Four Square store extensions and/or refurbishments were undertaken at: Patea, Shalimar, Waikanae, St John’s, National Park, Mahora in Hastings, Dannevirke, Awapuni, Kaponga, Waterloo in Lower Hutt, and Amberley in Canterbury. New fuel facilities were built as part of the Kaitaia PAK’nSAVE store development and the PAK’nSAVE Wairau Road refurbishment project. New markets and extensions to existing markets provided an additional gross retail floor area of 25,635 square metres, an increase of 7.7% nationally.
At the end of February, Foodstuffs co-operative members operated 48 PAK’nSAVE stores, 137 New World stores, 275 Four Square stores, 150 On The Spot convenience stores, 18 Henry’s Beer, Wine, and Spirit outlets, 8 Gilmours’ stores and 43 fuel sites. The companies continue to review and fine-tune their store formats introducing a number of innovations in each case. Foodstuffs Auckland Ltd opened its first store in the Auckland central business district – New World Metro, catering for those living and working in the inner-city. The store has a strong emphasis on fresh food. Foodstuffs (Wellington) Co-operative Society set up a pop-up New World store in Tawa as a temporary shopping solution for customers while it builds a permanent New World in the suburb. The store, which will open in 2012, will feature a new produce format with new style fixtures and ticketing. The expansion of the New Worlds stores at Ilam and Northwood allowed Foodstuffs South Island Ltd to further develop the small ‘coffee to go ‘ area that appeared in some earlier developments trialling purpose-built cafés. Customer reaction to these cafés has been favourable and the company will assess how they enhance the customer experience with a view to determining the café concept’s suitability for future developments. The adoption of polished concrete floors and open ceilings has proven to be well suited to the New World Ilam environment and this same format is to be incorporated into the
rebuild of New World St Martins. The combination of vinyl floor tiles and suspended ceilings will still form part of the South Island’s New World format. To enhance the developments in this area, new composite floor tiles which are harder wearing and able to withstand the rigours of supermarket foot-traffic have been installed at the New Worlds in Kaiapoi, Rangiora, and Northwood. The advantage of this tile is that it does not require a strip and polish and is less prone to cracking than the clay tiles previously been used. The new refrigeration colour “Steel Alloy” adopted in the South Island has proved to be less imposing than the old ‘Brunswick Green’ colour. To ensure a smooth changeover within stores and that a patchwork of colours does not occur, each store expressing interest in the new colour has been asked to provide a programme for changing the colours of their refrigeration and checkouts within a defined timeframe. As part of a continued focus on enhancing the shopping experience, a lower produce cabinet was used in New World Ilam to create an impression of space. There is a continued emphasis on, where possible, providing serve-over meat counters and displaying a working bakery environment to customers. The companies have continued to invest in their wholesale infrastructure, to support growth objectives, improve the efficiency of operations, and provide better servicing for the membership. Foodstuffs Auckland Ltd completed
Foodstuffs South Island Limited | Annual Report 2012
23
NATIONAL PROGRESS REPORT continued the first phase of Programme Lightening, a programme initiated in 2010 to improve operating efficiencies and to establish the platform which will underpin the company’s vision and strategy. Key objectives for the programme include more effective buying, tighter inventory controls, timely analysis of sales and performance data, and more efficient processes and operating practices.
Foodstuffs (Wellington) Co-operative
The company defined its future business model and business tool requirements, and instigated a Business Readiness Programme which was successfully rolled out in eleven stores. Roll out of the programme continues in 2012 when the company will commence the design and build phase.
is scheduled to launch in early 2013.
The company launched a second major programme of work to ensure a solid foundation for its growth and upon which to build Programme Lightening and other transformational business initiatives. Programme Foundation has already significantly enhanced the company’s technology capability and will deliver new datacentres and core network capability in 2012.
New Zealand. It is scheduled to be
Following on from the success of the national careers website the company has looked at other human resource related initiatives to collaborate on with sister companies. As a result of dialogue with Foodstuffs (Wellington) Co-operative Society Limited the two companies have rolled out Sonar 6 – an online performance management programme. In Auckland, the tool is now being used at the Support Centre and for management and supervisory staff across all its supply chain sites.
Society Ltd began developing a new warehousing facility for AF Logistics Ltd. The facility is being built in the Wellington harbour-side suburb of Seaview and is due to be completed in August 2012. The company also began investigating an on-line shopping network and made decisions to implement this 2012. The new facility
Foodstuffs South Island announced Project Greenfields to develop a new ‘state-of-art’ distribution centre in Hornby, Christchurch. Construction of the facility begins in April 2012. The new building will total 40,000 square metres making it the largest single food distribution centre in operational by March 2013. Foodstuffs NZ Ltd, as the Federation Headquarters of the Foodstuffs Group of companies, continued its role of co-ordinating the national activities of the Group where appropriate. During the year, the company strengthened our ability to build our brands nationally with the establishment of a Group marketing function. This development has allowed us to improve cost and efficiency in areas such as public relations and negotiate improved media rates. It has also allowed us to connect more effectively with our supplier partners to launch national programmes such as the successful Wattie’s Truckload Blowout. Other activities will be brought into the national Group as appropriate in order to improve quality and/or cost
outcomes for the Group. Key highlights of the national team included an increased impact of PAK’nSAVE advertising and promotions. This included talkedabout programmes such as the New Zealand Apples campaign, ‘1987 Again’ during the Rugby World Cup, and Meat Lovers Week. The team also improved our speed to market – responding to topical opportunities as well as combating competitive fuel promotional offers. In addition to the national promotional schedule for the New World banner, the overall brand strategy has been under the microscope and a major restage will occur in 2012. Also integrated into the Group marketing function is our ongoing work programme designed to bring in rebates from transactional services for members. This work will continue throughout 2012 with an added emphasis on understanding the implications and appropriate strategies for the acceptance of contactless ‘scheme-debit’ cards in the future. Foodstuffs NZ Ltd continues to coordinate national submissions and advocacy on public policy issues. A major focus in this last year has been the alcohol reform process which culminated in an Alcohol Reform Bill being introduced to the House last August. Foodstuffs submissions resulted in a number of helpful technical amendments to the Bill as reported back by Select Committee. More recently we have been working to secure support for a Supplementary Order Paper to amend clause 105A which introduces a single
alcohol display in a non-prominent location. Our intent is to ensure that the government’s policy intent can be achieved in a manner that provides certainty for business with minimum compliance costs. National submissions were also prepared for: the Commerce Select Committee’s Inquiry into the Price of Milk, the Smoke-free (Controls and Enforcement) Amendment Bill, passed in July last year; Ministry of Health’s consultations on Smokefree regulations; the Department of Labour’s Minimum Wage Review; the Productivity Commission’s Review of International Freight; the Ministry of Transport’s consultation on changes to road-user charges, the Ministry of Education’s Review of Industry Training, the Ministry of Justice’s Investigation of Minimum Pricing of Alcohol, and the Consumer Law Reform Bill, among others.
appreciation to my fellow directors and to the executives and staff of the respective Foodstuffs companies for the commitment and enthusiasm they show in ensuring the ongoing progress, development, and success of the wider Foodstuffs organisation.
Robert Redwood Chairman, Foodstuffs (NZ) Limited
In July 2011 Immigration NZ granted Foodstuffs’ application to have bakers added to the Immediate Skills Shortage List, providing formal government recognition of a skill shortage in this occupation. The change has made it easier for stores to recruit and retain foreign bakers on temporary work visas. Further changes to accident compensation, food regulation, and employment law are expected to be introduced in 2012 and Foodstuffs will continue to monitor these developments and to provide advocacy as needed on behalf of its members. In conclusion, as Chairman of Directors, I would like to express my
Foodstuffs South Island Limited | Annual Report 2012
25
EXECUTIVE TEAM PAK’nSAVE EXECUTIVE COMMITTEE
CORPORATE EXECUTIVES
Steven McDonald [Chairman]
PAK’nSAVE Riccarton
Steve Anderson
Chief Executive Officer
Stephen Boock
PAK’nSAVE Northlands
Yvonne Botha
Executive Assistant
Bryan Dobson
PAK’nSAVE Invercargill
Roger Davidson
Marcel Gray
PAK’nSAVE Wainoni
General Manager Property & Retail Development
Andrew Howard
PAK’nSAVE Richmond
Kim DeGarnham
General Manager Administration & Members Services / Company Secretary
John Lee
PAK’nSAVE Hornby
Philip Lemon
General Manager Trents Wholesale Limited
Chris and William McDonald
PAK’nSAVE Dunedin
Alan Malcolmson
General Manager Retail Operations
Brad Spence
PAK’nSAVE Moorhouse
John Mullins
General Manager Supply Chain
Jason Williams
PAK’nSAVE Timaru
Malcolm Wratt
General Manager Finance
Philip Wright
General Manager Information Technology
NEW WORLD EXECUTIVE COMMITTEE Chris Griffin [Chairman]
New World Gore
SENIOR EXECUTIVE
Phill Blackburn
New World Ilam
Finance
Nigel Bond
New World South City
Simon Hughes
Group Finance Manager
Kathy Frampton
New World Northwood
Murray Trim
Decision Support Manager
Warren McKenzie
New World Windsor
Andrew Wight
Internal Audit Manager
Craig Nieper
New World Centre City
Administration & Members Services Ron Bitschkat
Administration & Employee Services Manager Manager Members Services
FOUR SQUARE EXECUTIVE COMMITTEE Graeme Neilson [Chairman]
Ascot Four Square
Chris Dorward
Paddy Breen
Mackenzie Four Square
Information Technology
Pat Carroll (joined Feb 2012)
Culverden Four Square
Chris Cameron
Online Media Manager
Lynette Eddington (resigned Dec 2011) Top Notch Four Square
Ana Connor
eCommerce Manager
Rick Haaima
Palmerston Four Square
Gary Cowens
IT Operation Services Manager
Cushla Jones
Fern Grove Four Square
Gordon McCoy
Business Systems Manager
John McDonald
Pleasant Point Four Square
Philip Smith
Project Delivery Manager
John Niles
Owaka Four Square
Ian Steele
Hanmer Springs Four Square
Retail Operations Retail Brands Tim Donaldson
Retail Brands Manager
HENRY’S BWS EXECUTIVE COMMITTEE
Danny Halligan
Henry’s BWS Group Manager
Carl Wild [Chairman] Keith Miles
Annie Hay
Retail Merchandise Manager – Fresh
David MacKenzie
Retail Merchandise Manager – Packaged
Kent Mahon
New World Group Manager
Alan Smith
Four Square Group Manager
David Wise
PAK’nSAVE Group Manager
Henry’s City Henry’s Rolleston Henry’s New Brighton Henry’s Rangiora Henry’s Hornby Henry’s Woolston Henry’s Bishopdale Henry’s Tower Junction Henry’s Ferrymead Henry’s Shirley
Victoria Boyes
Henry’s Greymouth
Gerry Breen
Henry’s Queenstown
Marty & Raewyn Hay
Henry’s Centre City Henry’s Foodlands
Kevin Ryan
Henry’s Alexandra
Howard Smith
Henry’s Timaru
Craig Smith & Tracy Catanach
Henry’s Kaikoura
Brad Spence
Henry’s Moorhouse
Support Services Stephanie Feldbrugge
Support Services Manager
Nick Dawson
Group Communications Manager
David Norton
Loss Prevention Manager
Arron Perriam
Training & Development Manager
Murdoch Manufacturing Paul Johnston
General Manager
Supply Chain Kris Lancaster
Logistics Operations Manager
Patrick O’Leary
Article Master Manager
David Pawson
Wholesale Merchandise Manager
Distribution Centres Scott Fairweather
Manager, Hornby, Christchurch
Gareth Weatherston
Manager, Dunedin
Tony Ziolo
Manager, Papanui, Christchurch
Trents Cash’nCarry Phil Olsen
Operations Manager, Christchurch
Anthony Haslam
Manager, Greymouth
Allan McKenzie
Manager, Tuam Street, Christchurch
Paul Stanton
Manager, Blenheim
John Warren
Manager, Invercargill
Grant Watt
Manager, Timaru
Paul Witty
Manager, Nelson
Property & Retail Development Rebecca Parish
Property Development Manager
Clayton Young
Property Manager
Trents Wholesale Michael Arlidge
Foodservice Sales Manager
Alan Wicks
Wholesale Promotions and Merchandise Manager
ARCHITECTURE
Foodstuffs South Island Limited | Annual Report 2012
27
INDEPENDENT AUDITOR’S REPORT on the summary financial statements to the shareholders of Foodstuffs South Island Limited
The accompanying summary financial statements on pages 32 to 35, which comprise the summary balance sheets as at 29 February 2012 and the summary income statements and summary statements of comprehensive income, changes in equity and cash flows for the year then ended and notes, are derived from the audited financial statements of Foodstuffs South Island Limited (“the parent”) and its subsidiaries (‘’the group’’) for the year ended 29 February 2012. We expressed an unmodified audit opinion on those financial statements in our report dated 24 April 2012. The summary financial statements do not contain all the disclosures required for full financial statements under generally accepted accounting practice in New Zealand. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Foodstuffs South Island Limited. Directors’ responsibility for the consolidated financial statements The Directors are responsible for the preparation of a summary of the audited financial statements, in accordance with FRS-43 Summary Financial Statements.
Auditor’s responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with International Standards on Auditing (New Zealand) (ISA (NZ)) 810 Engagements to Report on Summary Financial Statements. Other than in our capacity as auditor we have no relationship with, or interests in, the parent and group. Opinion In our opinion, the summary financial statements, derived from the audited financial statements of Foodstuffs South Island Limited for the year ended 29 February 2012, are a fair summary of those financial statements, in accordance with FRS43 Summary Financial Statements. Other matter The financial statements of Foodstuffs South Island Limited, for the year ended 28 February 2011, were audited by another auditor who expressed an unmodified opinion on those statements on 14 April 2011.
24 April 2012 Christchurch
Foodstuffs South Island Limited | Annual Report 2012
29
FINANCIAL STATEMENTS
Foodstuffs South Island Limited Group Financial Statements Income Statements
32
Statements of Comprehensive Income
33
Statements of Changes in Shareholders’ Equity
33
Balance Sheets
34
Consolidated Statement of Cash Flows
35
Foodstuffs South Island Limited | Annual Report 2012
31
INCOME STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2012
GROUP
PARENT
2012
2011
2012
2011
$000
$000
$000
$000
2,431,653
2,339,141
2,221,039
2,139,841
127,904
120,901
84,579
91,823
2,559,557
2,460,042
2,305,618
2,231,664
Operating profit
239,423
219,273
216,321
193,482
Net finance (costs)/income
( 6,381)
( 7,999)
5,969
( 604)
( 198,629)
( 196,112)
( 198,474)
( 195,987)
( 3)
140
( 33)
-
34,410
15,302
23,783
( 3,109)
Income tax before legislative changes
( 4,087)
( 3,300)
2,576
3,853
Income tax on change to tax depreciation on buildings
( 6,005)
( 36,276)
-
-
-
413
-
( 88)
( 10,092)
( 39,163)
2,576
3,941
24,318
( 23,861)
26,359
832
24,318
( 23,861)
26,359
832
Revenue from sale of goods Other income Total revenue and other income
Rebates to members Share of profit/(loss) from associates Profit/(Loss) before tax Income tax expense:
Effect of change in tax rate Total income tax (expense)/benefit Net Profit/(Loss) for the year after tax Attributable to: Shareholders of the parent company
The loss attributable to Shareholders of the parent company is after a one-off tax charge of $6,005,000 (2011:$35,292,000) (note 8) and before dividend distributions of $9,410,000 (2011 $11,778,000), which are disclosed in the Statement of Changes to Shareholder’s Equity. Rebates and dividends totalling $14,175,000 declared after balance date, to be paid from retained earnings for the year.
The attached notes form part of and are to be read in conjunction with the audited financial statements.
STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 29 FEBRUARY 2012
GROUP
Net Profit/(Loss) for the year
PARENT
2012
2011
2012
2011
$000
$000
$000
$000
24,318
( 23,861)
26,359
832
Other comprehensive income: Movement in other non-distributable reserves (not taxable) Movement in investments FVTOCI reserve (not taxable) Movement in cash flow hedge reserve (not taxable) Total comprehensive income for the year
948
482
55
122
( 9,168)
( 3,296)
-
-
640
-
640
-
16,738
( 26,675)
27,054
954
16,738
( 26,675)
27,054
954
Attributable to: Shareholders of the parent company
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED 29 FEBRUARY 2012
GROUP
At 1 March 2011 Total comprehensive income Dividends payable Total recognised income and expenses Share issue At 29 February 2012
PARENT
2012
2011
2012
2011
$000
$000
$000
$000
208,011
203,190
65,544
33,094
16,738
( 26,675)
27,054
954
( 9,410)
( 11,778)
( 9,410)
( 11,778)
7,328
( 38,453)
17,644
( 10,824)
33,000
43,274
33,000
43,274
248,339
208,011
116,188
65,544
Basis of preparation These summary financial statements on pages 32 to 35, comprising the Income Statements, Statements of Comprehensive Income, Statements of Changes in Shareholders Equity, Balance Sheets, and Consolidated Statement Cash Flows are those of Foodstuffs South Island Limited (the “Parent”) and its subsidiaries (the “Group”). They have been prepared in accordance with Financial Reporting Standard No. 43 “Summary Financial Statements” and have been extracted from full financial statements that have been prepared in accordance with New Zealand Standards that comply with International Financial Reporting Standards. The full financial statements for the year ended 29 February 2012, authorised for issue and signed on 24 April 2012 have been audited by KPMG and given an unmodified opinion. The Group is a profit-oriented entity. For a complete understanding of the financial affairs of the Group, the full financial statements are available to qualifying members on request.
Foodstuffs South Island Limited | Annual Report 2012
33
BALANCE SHEETS AS AT 29 FEBRUARY 2012
GROUP
PARENT
2012
2011
2012
2011
$000
$000
$000
$000
451,647
435,978
22,573
25,712
15,075
17,457
14,969
17,167
ASSETS Non-current assets Property, plant and equipment Intangible assets Investments in subsidiaries
-
-
301,949
276,156
5,483
5,035
5,299
4,881
Investments in listed companies
26,690
35,611
-
-
Investments in other related companies
13,242
11,896
13,242
11,896
Investments in associates Investments held at fair value:
Derivative financial instruments Total non-current assets
640
-
640
-
512,777
505,977
358,672
335,812
Current assets Cash and cash equivalents
51,025
41,783
51,025
41,783
Trade and other receivables
205,106
153,784
179,955
132,301
Inventories
89,670
77,398
85,696
73,519
Total current assets
345,801
272,965
316,676
247,603
TOTAL ASSETS
858,578
778,942
675,348
583,415
87,158
EQUITY Capital and reserves attributable to equity holders Share capital
120,158
87,158
120,158
Other reserves
69,605
85,462
1,186
496
Retained earnings
58,576
35,391
( 5,155)
( 22,110)
248,339
208,011
116,188
65,544
68,079
74,037
68,079
74,037
2,328
1,902
2,328
1,902
45,257
42,013
2,232
3,084
616
752
616
752
116,280
118,704
73,255
79,775
Trade and other payables
236,868
205,179
232,860
202,289
Borrowings
182,165
174,952
182,165
174,952
1,400
-
-
-
70,888
71,054
70,873
71,034
TOTAL EQUITY Liabilities Non-current liabilities Borrowings Retirement benefit obligations Deferred income tax liability Provisions Total non-current liabilities Current liabilities
Provisions Rebates payable Current income tax payable
2,638
1,042
7
( 10,179)
Total current liabilities
493,959
452,227
485,905
438,096
TOTAL LIABILITIES
610,239
570,931
559,160
517,871
TOTAL EQUITY AND LIABILITIES
858,578
778,942
675,348
583,415
On behalf of the Board 24 April 2012
Robin Brown, Director
Stephen Boock, Director
The attached notes form part of and are to be read in conjunction with the audited financial statements.
STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 29 FEBRUARY 2012
GROUP
PARENT
2012
2011
2012
2011
$000
$000
$000
$000
Cash flows from operating activities Cash was provided from: Customers
2,495,028
2,466,497
2,236,080
2,242,384
Insurance proceeds received (excluding Property, Plant, & Equipment)
7,411
5,439
7,411
5,439
Interest received
1,629
2,290
15,958
2,289
Member trading accounts
8,005
4,779
8,005
4,779
2,512,073
2,479,005
2,267,454
2,254,891
2,270,883
2,201,938
2,055,603
2,011,449
198,801
185,558
198,642
185,412
7,558
8,266
7,651
592
-
-
-
-
4,404
2,250
3,396
( 224)
2,481,646
2,398,012
2,265,292
2,197,229
30,427
80,993
2,162
57,662
Cash was applied to: Purchases, wages and expenses Members rebates Interest paid Member Trading accounts Income tax paid Net cash flow from operating activities Cash flows from investing activities Cash was provided from: Advances from other related parties
5,285
6,670
-
4,514
Dividends
2,230
3,475
13,055
10,382
10,648
9,778
107
1,040
3,047
3,439
293
354
21,210
23,362
13,455
16,290
Insurance proceeds received for replacement Property, Plant, & Equipment Sale of property plant and equipment
Cash was applied to: Purchase of intangibles Purchase of property plant and equipment Purchase of listed investments Advances to related parties Net cash flow from investing activities
2,896
3,489
3,530
3,440
51,243
40,139
5,542
9,784
247
-
-
-
1,468
1,517
10,762
1,518
55,854
45,145
19,834
14,742
( 34,644)
( 21,783)
( 6,379)
1,548
33,000
43,274
33,000
43,274
33,000
43,274
33,000
43,274
Cash flows from financing activities Cash was provided from: Share capital raised Cash was applied to: Interest paid on Redeemable Preference Shares Dividends paid on Retained Patronage Shares Long term borrowings Net cash flow from financing activities Net increase/(decrease) in cash held
1,815
1,804
1,815
1,804
11,768
12,683
11,768
12,683 38,858
5,958
38,858
5,958
19,541
53,345
19,541
53,345
13,459
( 10,071)
13,459
( 10,071)
9,242
49,139
9,242
49,139
Opening cash brought forward
41,783
( 7,356)
41,783
( 7,356)
Ending Cash carried forward
51,025
41,783
51,025
41,783
51,017
41,304
51,017
41,304
( 4)
467
( 4)
467
12
12
12
12
51,025
41,783
51,025
41,783
Represented by: Bank Overseas currency accounts Cash on hand
Foodstuffs South Island Limited | Annual Report 2012
35
The network
NEW WORLD
HENRY’S BWS Kaikoura 1 Greymouth 1 Rangiora 1 Christchurch 9 Timaru 1 Dunedin 2 Alexandra 1 Queenstown 1
ON THE SPOT
FOUR SQUARE
Nelson 22 Blenheim 5 Kaikoura 2 West Coast 18 Canterbury 31 Ashburton 5 Timaru 8 Dunedin 27 Central Otago 7 Invercargill 21
Nelson 7 Blenheim 5 West Coast 5 Canterbury 11 Ashburton 4 Timaru 3 Central Otago 20 Dunedin 8 Southland 12 Stewart Island 1
PAK’nSAVE Nelson 1 Christchurch 5 Dunedin 1 Timaru 1 Invercargill 1
Nelson 2 Motueka 1 Blenheim 1 Kaikoura 1 Greymouth 1 Westport 1 Hokitika 1 Rangiora 1 Kaiapoi 1 Christchurch 7 Lincoln 1 Rolleston 1 Ashburton 1 Temuka 1 Timaru 1 Waimate 1 Oamaru 2 Wanaka 1 Cromwell 1 Alexandra 1 Wakatipu 1 Dunedin 3 Port Chalmers 1 Mosgiel 1 Balclutha 1 Gore 1 Invercargill 2 Winton 1
Foodstuffs South Island Limited | Annual Report 2012
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