Employee costs fell, decreasing from $129.4m in 2024 to $116.1m in 2025. This included restructuring costs and termination benefits.
Overall, Heinz Wattie’s NZ reported a net profit of $827,000 for the 2025 year, up from a loss of $189.4m in 2024.
It’s the first profit for the company since 2021, when Heinz Wattie’s reported a net profit of $10.7m.
Plant closures
Included in the financial statements are more details regarding the decision to close its Auckland, Dunedin and Christchurch manufacturing sites, affecting roughly 350 employees.
Wattie’s announced at the time that it would exit multiple categories, including frozen vegetables and Gregg’s coffee, as well as dips sold primarily under the Mediterranean, Just Hummus and Good Taste Company brands.
The financial statements confirmed that the manufacture and sale of these products will be phased out over the course of the 2026 financial year.
The statements also confirmed that approximately 220 growers of peas and other vegetable crops, primarily in Canterbury and the surrounding areas, will also be impacted.
“Management is currently assessing the full financial impact of this decision, including redundancy costs, site closure costs and any associated asset impairments or contract termination costs,” the statements said.
“As this assessment is ongoing, a reliable estimate of the total financial impact is not yet able to be determined but is not expected to have a significant impact on the financial performance or position of the consolidated group.”
Wattie’s New Zealand managing director Andrew Donegan shared his insights behind the company’s decision to close several factories.
Boss speaks out
In exclusive comments to the Herald following the announcement, Wattie’s New Zealand managing director Andrew Donegan said the business had worked across its supply chain, implementing various actions in an attempt to reduce costs.
“In addition, we worked on various productivity efficiencies within our factories. Other actions included a review of raw material sourcing options,” Donegan said.
“Despite extensive efforts, these categories remained unviable and not sustainable for the business in the long term.”
Donegan, who has been leading the New Zealand operation since October 2024, said the decision was made locally, although he noted that as part of a larger group, the business is accountable for its own performance.
He said the business had experienced rising input costs in recent times, with gas prices increasing 300% over the last seven years, while energy and diesel costs had roughly doubled.
Hikes to commodities also hurt the business, with coffee prices increasing up to 135% as an example.
Donegan said the overall impact of the increases had resulted in a 20%-40% cost per tonne increase in an environment which has seen significant volume declines of around 20%.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.