Where shoppers are seeing food prices rise, Woolworths New Zealand is seeing profits fall, but is still walking away with $76 million in its pockets. 

The latest annual figures show a 52% drop from last year, the source of which one business consultant says is ‘very opaque.’ 

Ernie Newman told Tim Dower that he believes the recent $400 million rebranding and transfer pricing has something to do with it. 

Transfer pricing is when multi-nationals adjust their books and take their profits in whatever country they want to, usually to a country with the lowest tax rate.

He says there's no sign of any benefit in this for consumers.

LISTEN ABOVE

Where shoppers are seeing food prices rise, Woolworths New Zealand is seeing profits fall, but is still walking away with $76 million in its pockets.  
The latest annual figures show a 52% drop from last year, the source of which one business consultant says is ‘very opaque.’  
Ernie Newman told Tim Dower that he believes the recent $400 million rebranding and transfer pricing has something to do with it.  
Transfer pricing is when multi-nationals adjust their books and take their profits in whatever country they want to, usually to a country with the lowest tax rate. 
He says there's no sign of any benefit in this for consumers. 
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.