Reckitt Benckiser cuts goodwill   17 Jun 2016

Article - BusinessDesk

Friday 17 June 2016 04:23 PM

Reckitt Benckiser cuts goodwill in year when Nurofen packaging scrutinised

By Paul McBeth

June 17 (BusinessDesk) - Reckitt Benckiser (New Zealand), the local division of the consumer goods business, sliced off more than a third of its goodwill in 2015, a year when its Nurofen painkiller packaging attracted the attention of competition regulators.

The Auckland-based consumer goods distributor cut $51.8 million from goodwill - which represents the premium paid over the fair value of identifiable assets in an acquisition - valuing the intangible asset at $79.4 million as at Dec. 31, according to financial statements lodged with the Companies Office. That impairment charge pushed Reckitt Benckiser into the red last year, reporting a loss of $48.8 million on sales of $127.8 million, compared to a profit of $2.8 million on revenue of $123.3 million in 2014.

The write-down was in a year when Reckitt Benckiser agreed to enforceable undertakings with the Commerce Commission to stop marketing the Nurofen specific pain relief range and said it would try to get the remaining stock off New Zealand shelves by March 23, 2016.

The undertakings were given to "satisfy the commission that there is no need to seek urgent injunctive relief pending the resolution of the commission's investigation", which was launched after the Australian Competition and Consumer Commission won a case against Reckitt Benckiser for misleading consumers with the painkiller's packaging. The ACCC is appealing the A$1.7 million fine imposed as being too small, and New Zealand's Commerce Commission is in the final stages of its investigation on this side of the Tasman.

Reckitt Benckiser declined to comment on the accounts.

The parent company injected $71.9 million of new capital into the New Zealand holding company in June last year, while $121.5 million of related party debt was repaid. That bolstered total equity to $80.7 million as at Dec. 31 from $57.6 million a year earlier, which had been the balance of Reckitt Benckiser NZ's retained earnings.

Last year Reckitt Benckiser sought to buy Johnson & Johnson's K-Y lubricant brand in a global stitch up with its own Durex product. While the deal was cleared in other jurisdictions, New Zealand's regulator turned down the bid, saying it wasn't satisfied such a union wouldn't detract from competition in the supply of personal lubricants to supermarkets and pharmacies.

(BusinessDesk)

ENDS

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more