Ngāi Tahu announces annual financial results
Te Rūnanga o Ngāi Tahu today released the annual report of Ngāi Tahu Holdings for the financial year ended 30 June 2019 and has reported a net profit of $37.5 million.
Kaiwhakahaere Lisa Tumahai says there was a lot to celebrate in the past year as the iwi has continued its focus on delivering social, economic, environmental and cultural outcomes for Ngāi Tahu whānui.
“Our top priority continues to be improving the wellbeing of more than 65,000 Ngāi Tahu members, and we are proud to do that with a range of programmes that target our whānau from birth, offering them ways to connect and engage with the iwi, and to improve their educational outcomes and financial situations.”
Ngāi Tahu Holdings distributed $67 million to the Office of Te Rūnanga o Ngāi Tahu to fund tribal initiatives, an increase on the previous year.
“We have increased the Whai Rawa tribal savings fund by $5.6 million, contributing to the $85.5 million of total funds managed as at 31 March 2019, and continued to provide a raft of opportunities for whānau in the past financial year, including 581 pēpi packs and 927 school starter packs that connect our tamariki and provide resources for them at birth and again when they start primary school. We continued to offer opportunities for rangatahi including Te Pōkai Ao, an initiative focused on STEAM (Science, Technology, Engineering, Arts and Mathematics) development which now has nearly 100 alumni.”
“We have held 11 road shows for our whānau living further afield in Australia and wider Aotearoa with more than 3,000 attendees.”
“We are also making progress in areas of great importance to the iwi, including implementing our climate change strategy, defining our freshwater position, and continuing the development of Haea Te Awa, our transformational tribal strategy focused on enhancing regional economic development throughout Te Waipounamu.”
Ms Tumahai says while the net profit is lower than it has been in recent financial years, a return to stronger growth is expected in the coming years.
“I am confident the initiatives Ngāi Tahu Holdings has in place, led by new Chair Mark Tume, will see improvement in next year’s profit.”
Ngāi Tahu Holdings Chair Mark Tume says the results reflect several factors, including economic trends that negatively impacted parts of the business including Ngāi Tahu Tourism, Ngāi Tahu Farming and Ngāi Tahu Property’s development portfolio.
“We have been talking for some time about ‘headwinds’ or wider economic factors that have impacted performance, and they are now firmly upon us. As well as global and national economies slowing, we have faced challenges with a small number of our investments – in particular Ngāi Tahu Farming and Oha Honey.”
“The Holdings Board has taken a $57.1 million write down on Oha Honey and farm valuations were also lower for Ngāi Tahu Farming. We have also undertaken a detailed review of all assets in light of the economic outlook. This is critical in ensuring we strike the right balance between growth on one hand, and operational performance, cash flows, and managing the balance sheet tightly on the other hand.”
“Oha Honey is re-establishing itself following a change in ownership and a rebrand. The sector has also had to contend with unusual climatic conditions for three consecutive years, which has meant underproduction, and lower sales, impacting performance. Nevertheless, the Oha team is working very hard to build a business of which we can be proud.”
“Ngāi Tahu Seafood had an outstanding year and Ngāi Tahu Property is better positioned going forward, having secured new development sites following the completion of two successful residential developments ahead of schedule. On top of this the Ngāi Tahu Property investment portfolio performed strongly.”
Mr Tume is confident that Ngāi Tahu Holdings will see improved growth over the next three years.
“Our focus is on managing day-to-day operations, ensuring we have a strong balance sheet, and operating cash flow. However, while the economic environment has had a negative impact on some of our businesses it also opens up opportunity for patient investors, hence our focus on maintaining financial strength. Our goal is to return to a net profit of at least $90 million over the next three years. We are positioned well and I am confident in our ability to achieve this.”
- $67m distribution to Te Rūnanga o Ngāi Tahu
- $1.51b Ngāi Tahu Holdings shareholder equity
- $37.5m total net profit
For further information please see the Annual Report at https://ngaitahu.iwi.nz/AR-2019