Sony New Zealand profit falls as revenue slips to NZD $53m

Sony New Zealand reported a decline in revenue for the year ended 31 March 2026, with sales of goods and services falling from NZD $59.306 million to NZD $53.470 million.

Including service revenue, total revenue from contracts with customers was NZD $53.534 million. That was down from NZD $59.371 million in the previous financial year.

The company imports, distributes and services consumer electronics and broadcasting equipment in New Zealand. Its financial statements were prepared under the New Zealand equivalents to the International Financial Reporting Standards Reduced Disclosure Regime. The directors authorised the accounts for issue on 22 July 2026.

The reduction in revenue was accompanied by a smaller cost of sales. Cost of sales fell to NZD $43.262 million from NZD $45.007 million.

That left gross profit at NZD $10.272 million, down from NZD $14.364 million a year earlier.

Profit declines

Sony New Zealand's profit before income tax fell to NZD $1.657 million from NZD $2.167 million.

After tax, profit for the year was NZD $1.188 million. That compared with NZD $2.304 million in 2025.

The result represents a decline of about 48.4% in annual profit.

The company's tax position also changed materially. Sony New Zealand recorded an income tax expense of NZD $469,000 for 2026, compared with an income tax benefit of NZD $137,000 in the previous year.

The change increased the pressure on the bottom line despite lower operating costs.

Costs reduced

Distribution costs declined to NZD $1.724 million from NZD $2.446 million. Administrative expenses also fell, dropping to NZD $7.328 million from NZD $10.115 million.

Employee benefits were NZD $3.287 million, down from NZD $3.899 million. Depreciation expenses also declined during the year.

Leasing and rental expenses fell to NZD $67,000 from NZD $208,000. The company also recorded no restructuring costs during 2026, compared with NZD $702,000 in the prior year.

Finance income was NZD $423,000, down from NZD $635,000.

The company recorded a net foreign exchange gain of NZD $24,000. This compared with a net loss of NZD $227,000 in 2025, when Sony New Zealand also recorded a loss on the disposal of property, plant and equipment.

Cash position

Cash and cash equivalents stood at NZD $16.481 million at 31 March 2026. That was slightly below the NZD $16.680 million held at the end of the previous financial year.

Most of the company's cash was held on deposit with a related party. The balance was NZD $15.897 million, compared with NZD $16.186 million in 2025.

Cash generated from operating activities fell sharply. Net operating cash inflow was NZD $2.423 million, compared with NZD $8.071 million a year earlier.

The decline reflected lower customer receipts and higher net movements in working capital.

Receipts from customers fell to NZD $60.778 million from NZD $70.348 million. Payments to suppliers and employees were NZD $59.567 million, compared with NZD $63.764 million.

Working capital

Trade receivables increased during the year to NZD $4.599 million from NZD $3.692 million.

Inventories were also slightly higher at NZD $9.632 million, compared with NZD $9.401 million.

The company's financial assets at amortised cost fell to NZD $5.091 million from NZD $8.008 million. Related-party receivables accounted for NZD $4.748 million of the 2026 balance.

Trade and other payables declined to NZD $6.259 million from NZD $8.387 million.

Dividend payment

Sony New Zealand paid a NZD $2.304 million dividend to shareholders during the year.

The payment equated to NZD $22.81 per fully paid ordinary share. The previous year's dividend was NZD $1.983 million, or NZD $19.63 per share.

Retained earnings consequently fell to NZD $25.891 million at 31 March 2026 from NZD $27.007 million a year earlier.

Total equity declined to NZD $26.891 million from NZD $28.007 million.

The company's share capital remained unchanged at NZD $1 million.

Investment levels

Sony New Zealand spent NZD $15,000 on property, plant and equipment during the year. That was lower than the NZD $36,000 spent in 2025.

The company reported no capital commitments outstanding at the end of the reporting period or at the date of the financial report.

Its total assets stood at NZD $37.169 million at 31 March 2026, down from NZD $40.686 million.

Total liabilities also declined, falling to NZD $10.278 million from NZD $12.679 million.

The audited financial statements cover the balance sheet, profit or loss and other comprehensive income, changes in equity, cash flows and accompanying notes. PwC said the statements fairly presented Sony New Zealand's financial position, performance and cash flows for the year ended 31 March 2026.

No significant event affecting the company's operations, results or state of affairs was reported after 31 March 2026.