In this article, we will discuss the 15 most valuable New Zealand companies in the world. You can skip our detailed analysis of these companies, and go directly to 5 Most Valuable New Zealand Companies in the World.
Companies play a vital role in the economic as well as the social development of a country. The success of a country is therefore contingent on the success of companies, as an economic boom directly translates to the stability and growth of a country. This relation is formed since it is these companies that offer invaluable services, products, and wages to the public and therefore improve their quality of life drastically. The taxes generated through these companies also help in maintaining the infrastructure of a country – buildings, roads, hospitals, schools, etc. They also help in providing essential services such as access to healthcare, law officers, firefighters, and so on.
New Zealand's Economy: An Analysis
By placing emphasis on the development of companies for economic and social prosperity, the island country of New Zealand has managed to turn itself from a regulated and agrarian economy to an industrialized and free-market economy in these past 40 years. As per New Zealand Government’s official site, New Zealand boasts a GDP of US$325 billion as of March 2021. Different sectors have played an integral part in achieving a quarterly growth of 1.6%. The major contributing sectors include the service industry along with the manufacturing and construction industries. Moreover, GDP from services in New Zealand rose to NZ $43804 million in the first quarter of 2021 from NZ $43181 million in the last quarter of 2020.
Increased amenities combined with an improvement in mean years of schooling has helped New Zealand in achieving a place in the top 15 countries in the Human Development Index.
In this article, we will discuss the companies that rank as the 15 most valuable New Zealand companies in the world. These companies can be considered as one of the most integral factors that are driving the country's highly dynamic growth.
For our list of the 15 most valuable New Zealand companies, we have used market capitalization as our metric.
Most Valuable New Zealand Companies in the World
15. Fonterra Co-operative Group Limited (NZFX:FCG.NZ)
Fonterra is a multinational dairy co-operative that produces 30% of the dairy exports of the world. Owned by ten-thousand-five-hundred Kiwi farmers, it is an important distributor in more than a hundred countries and has great expertise in the dairy business. Fonterra was formed as a result of a merger in October of 2001 of New Zealand’s largest companies in the dairy industry. Despite the impact of COVID-19, Fonterra has shipped a record 2.59 million metric tons owing to its resilient supply chain.
14. Port of Tauranga Limited (NZFX:POT.NZ)
In regards to the cargo volume, Port of Tauranga Limited is the largest port in New Zealand. It is the most integrated port in the country, both vertically and horizontally. It has investments in stevedoring, logistics companies, New Zealand ports, and marshaling companies. The Port handles 41% of all shipping containers and 37% of the exports of the country. Despite facing delays and disruptions due to the COVID-19 pandemic, Port of Tauranga Limited has been reported to have earned better than expected profits.
13. Infratil Limited (NZFX:IFT.NZ)
Infratil Limited is an infrastructure investment company with operations based in New Zealand, United States, and Australia. Infratil is one of the most valuable New Zealand companies in the world. It has centered its investments in a number of sectors, including energy, health care, social infrastructure, and transport. Due to strong cost management during the pandemic, Infratil was able to undertake capital expenditure of $1235 million in multiple sectors, including a significant investment of $590 million in renewable energy in 2020.
12. EBOS Group Limited (NZFX:EBO.NZ)
EBOS Group Limited is one of the largest Australasian wholesalers, marketers, and distributors of pharmaceutical and healthcare products. It has also diversified its operations to include the distribution and marketing of animal care and consumer products. The group managed to generate close to $9 billion in revenue in 2020, a rise of 26.5% from the previous year. Moreover, it invested a total of $73.5 billion in various organic and inorganic growth opportunities. Owing to the pandemic, the high demand for healthcare products led to a 27.4% increase in revenue in 2020. The expansion of operations has allowed EBOS Group Limited to maintain its position as one of the most valuable New Zealand companies in the world.
11. Fletcher Building Limited (NZFX:FBU.NZ)
Fletcher Building is one of the leading companies in the building sector. Its retail services focus on building houses, insulation structures, and other types of infrastructure. Recently, its profits have been suffering due to the economic downturn initiated by the COVID-19 pandemic. As a result, the salaries of the senior executives dropped by as much as 30%. It has been reported that the pandemic induced a loss of a whopping $196 million. However, as of August 2021, the company reported a bounce-back in profits, as it earned $305 million in income, demonstrating the company’s resilience.
10. Contact Energy Limited (NZFX:CEN.NZ)
As the second-largest electricity generator of New Zealand, Contact Energy Limited produces 23% of the available energy, including wholesale business in liquefied petroleum gas, natural gas, and electricity. The company originated in 1996 with the partition of the Electricity Corp. of New Zealand. It claims to offer customers a cost-effective, personalized experience by producing 85% of its electric supply from renewable energy resources. Contact Energy Limited operates 11 power plants, and its success is credited to the high electricity demand in an increasingly technologically advanced country like New Zealand. Even during a year in which the performance of the industry has been called into question, it has reported a 50% increase in profits after the widely applauded performance of its ‘Thermal Co’ proposal.
9. Ryman Healthcare Limited (NZFX:RYM.NZ)
With 34 operational villages in New Zealand, Ryman Health Care is a rest home and a retirement village. It has a business model which combines healthcare services with property development. Ryman Healthcare offers services that include access to hospitals, rest homes, and retirement living to its residents. It has a separate dementia wing which is highly beneficial for residents seeking specialized dementia care. Despite the multitude of challenges presented by the pandemic, it has managed to flourish and come out on top with a 54% increase in revenue.
8. Mercury NZ Limited (NZFX:MCY.NZ)
Mercury is a Kiwi electrical generation company as well as an electricity retailer. It ranks 8th in our list of the 15 most valuable New Zealand companies in the world. Following the recent demand for renewable energy sources, the company has managed to produce 100% of its electricity through geothermal, gas-fired, wind-powered, and hydro energy sources. Its customer base is spread all across New Zealand as it produces 17% of the total electrical supply of New Zealand. As per Mercury Limited’s Interim Report 2021, the company recorded an increase in operational earnings of $36 million. The renewable energy model has turned out to be highly lucrative in attracting investors.
7. Spark New Zealand Limited (NZFX:SPK.NZ)
Offering services such as mobile networks, internet connections, and fixed phone lines, Spark Limited is the second-largest New Zealand telecommunications company. Previously called Telecom, it has been criticized for holding a monopoly in the market. However, its division into three separate sectors ended the monopoly it had previously. The company was also accused of advertising high prices, which it worked upon after an increase in market competition. Spark’s willingness to adapt is credited as the prime reason for the company’s undying success. The company, however, experienced a decline in revenue in 2021 due to a loss of $38 million in roaming revenues.
6. Mainfreight Limited (NZFX:MFT.NZ)
Headquartered in Auckland Main, Freight is a transport and logistics company based in New Zealand, which began its operations in 1978. It has over 280 branches all around the world, building a vast global network. The company is able to meet its customers’ delivery requirements through speedy and cost-effective services offered across oceans.
It has opened subsidiaries internationally in countries such as Australia and the United States and, recently, showed unwavering success despite the unprecedented nature of the worldwide pandemic. Managing to adapt to the current circumstances, it has installed strict hygiene and protective measures to minimize the spreading of the virus. In fact, it is reportedly on the way to becoming the first-ever company to crack one-hundred dollars per share on a local stock exchange.
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Disclosure: None. 15 Most Valuable New Zealand Companies in the World is originally published on Insider Monkey.