DYNAMIC BUSINESS
Exclusive report: Deloitte TOP 200 Awards Inside: Winners and finalists for 2017
The spirit of resilience
Company of the Year
Facing the inevitability of change — D9
Top 200 tables
The a2 Milk Company — D11
How they fared — D25
Visionary leader
Rod Drury, Xero D22-23
Cream of the crop Meteoric rise sees The a2 Milk Company honoured in business awards
T
he a2 Milk Company has been named Company of the Year at the prestigious Deloitte Top 200 Awards, on the back of a meteoric share price rise of 250 per cent in the year to September. The judges were impressed with a2 Milk’s revenue growth of 56 per cent; a result of strong demand for its A1 betacasein-free milk products from Asia. In a market update on Tuesday, a2 Milk announced that in the four months to October, net profit was $52.4 million up 137.7 per cent on the same period in 2016; underlining why the NZX’s star performer took out the top honours at last night’s Top 200 awards ceremony. A2 Milk’s outstanding success headlined a generally positive year for the Deloitte Top 200 companies. Total revenues for the companies in the 2017 Top 200 Index increased 4.3 per cent to reach $179.0 billion — a turnaround from the fall in revenue seen in the 2016 Index. 2017 also saw an increase in underlying earnings and equity; but a decrease in total after tax profits of 6.4 per cent, from $9.3 billion in 2016 to $8.7billion this year. Spark managing director Simon Moutter was named Chief Executive of the Year for his relentless commitment to Spark’s future as a digital services business. Moutter’s contribution to New Zealand’s broader success and support of inno-
vation and diversity was applauded by the judges. The a2 Milk Company’s chief executive, Geoff Babidge, was also a finalist in this category. Port of Tauranga’s Steve Gray was awarded Chief Financial Officer of the Year. The judges said Gray demonstrated he is not afraid of a challenge. During Gray’s tenure as CFO, the port company has achieved a ten-year total compound average return to shareholders of 18.3 per cent. Rob Campbell, with his 30-plus years of governance and investment experience, was awarded Chairperson of the Year, recognising his strong track record in financial performance. The judges applauded his thought leadership and willingness to speak freely — an asset to the business community as well as to the companies he chairs. The Visionary Leader for 2017 was Xero founder and chief executive Rod Drury who has grown his software as a service company to a market capitalisation of $4.7 billion in just a decade. After three appearances as a finalist, Air New Zealand ascended to take out the Excellence in Governance award. Its stakeholder management is seen as going beyond shareholders to benefit the country. The airline has applied best practice in important areas including its sustainability report. And though being the third mobile operator in a small country is a tough role to occupy, 2degrees achieved a 24 per cent growth in
Chief Financial Officer of the Year: Steve Gray, Ports of Tauranga
This moment matters Congratulations to this year’s Deloitte Top 200 winners. deloitte.co.nz
© 2017. For information, contact Deloitte Touche Tohmatsu Limited.
revenue over the past year and delivered a profit for the first time. This feat saw it take out the award for Most Improved Performance, squeaking in ahead of Xero and Datacom. Zespri was awarded Best Growth Strategy. The exporter kiwifruit has performed superbly, implementing a strategy that has seen it flourish despite significant headwinds. Fonterra, again ranked first in the Top 200 Index, saw an increase in revenue of 11.8 per cent on 2016. The dairy giant’s Disrupt Initiative — embracing diverse thinking to form new business models — saw it take out the Diversity and Inclusion Leadership category. Fonterra’s Komal Mistry, a key driving influence in the success of the Disrupt programme, was recognised as Young Executive of the Year. The Deloitte Top 200 list includes publicly listed and private companies, NZ subsidiaries of multinational companies, co-operatives, societies and state-owned enterprises. The financial figures for the Top 200 as well as New Zealand’s Top 30 finance companies have been produced in full at the rear of this Dynamic Business 2017 report, with explanations and insight from the Herald’s team of business reporters.
Chairperson of the Year: Rob Campbell, Tourism Holdings
Chief Executive of the Year: Simon Moutter, Spark