HP’s local New Zealand unit has seen its revenues drop from $647 million in 2012 to $570 million in the 2013 financial year, a revenue decrease representing $77 million or roughly 12 percent year-on-year.
But despite the revenue decrease at the tech giant, gross profit margins changed little from 34.2% down slightly to 33.7%.
One of the most dramatic changes on its profit and loss statement has been a $74 million reduction in administrative expenses, which dropped from $230 million to $187 million.
This expense reduction slimmed the company’s annual net loss in New Zealand from over $92 million to just $15 million.
With regards to the local unit balance sheet, the big mover has been the company's trade receivables which have blown out from just $77 million to over $244 million - this may account for the nearly $200 million increase in borrowings.
Cash on hand at the end of 2013 was $58 million.
HP’s financial year runs from 1st November to 31st October. All of our comparisons are between the 2012 and 2013 years.
