Lion NZ – New Zealand’s largest brewery – has recorded a $46.4 million loss in 2023.
Outlined in newly-published statements, the loss is significant difference from the $5.47 million profit the company made in 2022.
According to the New Zealand Herald, a big amount of the loss was attributed to a $26.2m “onerous contract”.
An onerous contract is one in which the costs of fulfilling the terms of the agreement exceed the economic benefits that are expected to be received from it.
In other words, it is a contract that is more burdensome than beneficial for one of the parties involved.
Citing commercial sensitivity, Lion did not offer any further information about said contract.
According to documents, Lion’s sales were up by nearly $30m but it faced higher operating costs and higher financing costs.
“It is always disappointing to report a loss, but particularly so when we are in many areas making good progress against our strategy,” said Lion NZ Managing Director, Craig Baldie.
“The loss can largely be attributed to changes in our group cost base, a one-off cost relating to an onerous contract and higher interest costs on our debt.”
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