Welcome to Kalkine Media’s daily update of the latest events in the NZ financial markets, the economy and major corporate moves -
People rushing to stock up their pantries ahead of Covid-19 lockdowns have lifted the revenue forecast for dairy company a2 Milk. The company – which exports infant formula and sells liquid milk to New Zealand, Australia and the US – said it was experiencing strong revenue growth, particularly in respect to its infant nutrition products in China and Australia.
Trade Me says its marketplace will operate as normal when New Zealand shifts to alert level three. While the country has been at alert level four, people have only been able to buy and sell "essential" general items. Head of marketplace Lisa Stewart said, from Friday, shoppers would be able to buy and sell again and normal trading would resume from Tuesday. Trade Me has put measures in place to ensure all trades remain contactless. "Trades must be contactless and cash is not permitted. Instead, payments can be made via Ping, bank transfer or Afterpay.
Spark will undertake a company-wide cost review as it seeks to offset current and future impacts from COVID-19. The country's biggest telecommunications company reaffirmed guidance for earnings before interest, tax, depreciation, amortization, and investment income of between $1.1 billion and $1.12 billion in the 12 months ending June 30, up from $1.09 billion a year earlier.
The Prime Minister has encouraged Kiwis to eat local and use restaurants that do their own deliveries under Alert Level 3. Restaurants are calling on the Government to step in, as Uber Eats charges a commission around 30 to 35 percent for most purchases, considerably more than many other delivery services. By comparison, leading local competitor Delivereasy charges a 20 percent commission.