Best of Business

Premium apple demand is at the core of a strong financial result for T&G Global. Its revenue has increased by 14% to $1.6 billion and its net profit after tax is $16 million, up from a loss of $9.9m. Global Chief Executive Gareth Edgecombe told Heather du Plessis-Allan that the Chinese and US markets in particular have been buying more of the premium Jazz, Jolie and Envy apples. LISTEN ABOVESee omnystudio.com/listener for privacy information.

It's looking to be a rough season for our meat processing sector, with companies struggling to compete with abundant grass and a turbo-charged store stock market. Some companies have dropped published lamb and beef schedules by 10c/kg, and the decline has prompted concerns.  The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

So David Seymour’s right about Air New Zealand - but he’s also wrong about Air New Zealand. Before we get to why, let me bring you up to speed on what’s happened with the airline today, because the news is not good. Air New Zealand has posted a half-year result showing a $59 million pre-tax loss, which is slightly worse than expected. And to be fair to Air New Zealand, a lot of this really isn’t their fault.  They’ve had not one, but two engine types in their fleet causing them trouble. And the economic downturn we’re experiencing in New Zealand - the worst in most of our lifetimes, you have to go back more than 50 years to find anything as bad - directly affects their earnings.  If we don’t have money, we’re certainly not spending money on flights. But some of this is their fault. They’re squandering customer loyalty with poor on-time performance and a tired, diminished Koru Club offering. And this is where David Seymour is right when he says, “Go woke, go broke.” Because part of the reason Air New Zealand is losing customers to Jetstar is that there are people who no longer want to pay for Koru Club. The offering has slid from the good old days. You can’t even - and this bugs people more than the airline ever seemed to realise -  go into the lounge, ask for a coffee, and take it away like you can at a café. There are no takeaway coffees because Air New Zealand doesn’t want paper cups going on planes. Paper cups are bad for the environment… when you’re flying planes. They’ve wasted time and money trialling an electric aircraft they don’t actually know how to integrate into their fleet. And they’re constantly lecturing the government about sustainable aviation fuel - SAF - which is more expensive than standard jet fuel, and standard jet fuel is already extremely expensive right now. But here’s where David Seymour is wrong - he says the solution is to sell down the Government’s 51 percent stake in Air New Zealand. We can’t do that. We are an isolated island nation. There are only two ways to get here - by boat or by plane, and we all know which one people actually use.  We need to own those planes to make sure they keep flying. If we learned anything during COVID, it’s that Air New Zealand effectively became a logistics lifeline and repatriation service for the entire country. So yes, David Seymour is part right and part wrong. We do need Air New Zealand to stop the distractions and start doing its job properly. And we do need it to remain in New Zealand hands.See omnystudio.com/listener for privacy information.

Sky TV says even though it's had a strong first-half financial year result - the television market remains challenging. It's reported a $52 million net profit, turning around a $1.7 million loss last period. Its revenue rose eight percent, to about $414 million. Sky TV chief executive Sophie Moloney says revenue for traditional TV was softer than expected. "The TV side does seem to be suffering a bit more than others, so I do think it's incumbent on us to make sure that we're talking about that value and allowing our clients to see the benefits." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Women are continuing to lag significantly behind men when it comes to home ownership. Data from Cotality shows more than half of Gen Z men surveyed own their own home, while just a third of women do.  The disparity also exists amongst the millennial and Gen X age groups. Cotality Chief Property Economist Kelvin Davidson says it's not an attitude issue.   "Females actually rate property ownership more important than males, pretty much across the spectrum. So this is about other things, monetary factors, there's unfortunately still that gender wage gap across New Zealand." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Air New Zealand's assuring it's on track for economic stability. The national airline's announced a first-half before-tax loss of $59 million. CEO Nikhil Ravishankar says the result's driven by challenges from aircraft being grounded, a softer recovery than expected - and rising costs.  But he says they'll be well on the road to recovery over the next two to three years.  "One of the key reasons I say that so confidently is for the first time in six years, we've got new aircraft coming back into the fleet and we're solving engine issues."  LISTEN ABOVESee omnystudio.com/listener for privacy information.

New reports show alcohol consumption is at an all-time low, and there's concerns about what this could mean for the hospitality sector. Stats NZ figures show overall consumption dropped 8.3 percent, beer consumption fell 10 percent, wine was down 11 percent - with spirits rising by 1.3 percent. Sam MacKinnon from Hospitality NZ says it's likely rising costs are driving consumers away, but recent health trends are also a factor. "Cost is becoming an increasing driver for people to choose to consume less, so it's a bit of a combination of factors." LISTEN ABOVESee omnystudio.com/listener for privacy information.

New Zealand won't be going cashless anytime soon under the Reserve Bank's new proposal.  It wants to set up 1300 multi-bank hubs to provide full services free of charge. The plan ensures those in urban areas can walk to get cash - and the drive for those living rurally is reasonable.  NZ Herald Wellington business editor Jenee Tibshraeny explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

AI firm Anthropic has made upgrades to their Claude model and it's sparked concerns about what this could mean for markets and jobs. Claude specialises in coding and technology, and IBM's stock recently took a hit - with experts citing the model as a reason. Milford Asset Management expert Andrew Curtayne explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

A positive financial result has gentailer Meridian thinking about infrastructure upgrades.  It recorded a half year profit after tax of $227 million. Chief executive Mike Roan says they're considering increasing capacity at the Pukaki dam in the Mackenzie basin.  He says it's still early days though.  "The question that I've asked the team is - is it economic to do it? Does it actually make financial sense to expand the amount of hydro storage that we've got?" LISTEN ABOVESee omnystudio.com/listener for privacy information.

A real estate agent says there isn't enough demand to meet the supply of townhouses. Newly constructed townhouses are sitting on the market so long that they no longer qualify as 'new builds'.  It means first-home buyers can't get low-deposit loans on the property.  Real Estate Agent Rawdon Christie says developers are shifting close to what the market wants.  "So rather than putting 15 in there, let's put 8 standalone two-story houses, which are still three-bedrooms."  LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Reserve Bank's emphasising the importance of cash services being free-of-charge. It's proposed requiring the banking sector to provide accessible full-cash services across the country - at $104 million a year. The plan ensures those in urban areas can walk to get cash, and the drive for those living rurally is reasonable.  Money and Cash Director Ian Woolford says people don't expect to pay to deposit or withdraw cash.  "Communities need easier access to cash, closer to home...what we've learned, partly, from those cash trials is that this is what communities need."  LISTEN ABOVESee omnystudio.com/listener for privacy information.

Momentum's sky-high for state-owned farming enterprise Pāmu. Landcorp's half-year net operating profit jumped $28 million - from a $2 million loss in December 2024 to a $26 million profit last December.  It's forecasting a record full-year net operating profit of up to $107 million. The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Media company NZME's remaining cautious about the economy despite a positive financial year. The owner of The Herald and Newstalk ZB reported a $13.1 million net after tax profit - turning around the previous year’s $16 million dollar loss. Its operating costs were four percent lower annually - reflecting the closure of community publications in December 2024. CEO Michael Boggs says it's a grind to recovery. "There's still been inflationary pressures, they're not feeling the best, they're not feeling confident yet to go and invest. And advertising is probably one of the first levers you can pull." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The cost of living is hitting Kiwis hard, with new data showing Aucklanders are more likely to be worse off. More than a third of New Zealanders have a savings balance of less than $500, according to new data from Westpac. Westpac's Financial Wellbeing programme manager, Warren Ngan Woo, says Auckland is a big city where things cost more, which eats into people's ability to save money. "This is just a snapshot in relation to savings, but it certainly doesn't take into account what other people have in options with their savings." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Mercury's achieved a strong return to profit.  BusinessDesk says the energy company's half year earnings before interest to December 31- reached $537 million. It recorded a net $20 million dollar profit - up from a $67 million loss last year.  Chief executive Stew Hamilton says they're doing well and don't need to raise capital.  "We've been disciplined in how we manage our money, how we earn our money and spend it, so we're investing wisely, performing strongly - and I think that gives us options." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Comvita’s half-year result shows the company is seeing a noticeable financial turnaround. Its result for the six months ended December 31 had revenue up 18.3 percent to $118 million, EBIT up 10.7m to $10m, and debt reduced by $32.9m to $48.7m. Comvita CEO Karl Gradon says he's proud to see the company return to profitability and he's confident the company's been through the worst of it. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Remuneration Authority says more responsibility attracts more pay.  The Taxpayers' Union says Western Bay of Plenty District councillors are getting an average 57 percent pay increase. Authority Chair Geoff Summers says the pool of funding for council has been decided - but not individual raises.  He says the council will operate with two fewer councillors this term.  "And most people would say - if I'm going to be doing more work than what some other people used to do, I want more money for it." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Genesis Energy says fresh Crown investment into the power generator will go towards building infrastructure.  The Government's confirmed it will put up to $200 million dollars - letting it retain its 51 percent shareholding, as Genesis launches a capital raise. Chief executive Malcolm Johns says the money will speed up its ability to build. "We're gonna build some solar farms, some grid-scale batteries and some wind, and extend the life of Huntly Rankines." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Business appears to be booming in most parts of the country. ABC's quarterly market report shows business sales are up 28 percent on this time last year, with average prices up three percent. It finds 507 completed sales over a 12 month period - a new historical high. ABS Business Managing Director Chris Small told Mike Hosking that there's a link between sales and the current state of the economy across the country. He says in line with the economy, the South Island is up 70 percent year on year in business sales, while Wellington is down 10 percent.  LISTEN ABOVESee omnystudio.com/listener for privacy information.