Zespri has taken out top honours as Deloitte Digital/Marsh Company of the Year in the 2018 Top 200 Awards — partly due to an impressive 38 per cent lift in net profit and record payments to its growers.

The highly anticipated awards, held annually to recognise and honour outstanding performance among New Zealand’s largest companies and trading organisations, were unveiled at a glittering dinner held at Spark Arena in Auckland last night.

Zespri has been a frequent sight at the awards in recent years — the kiwifruit exporter was a finalist for Most Improved Performance in 2015, and took out the awards for Most Improved Performance and Best Growth Strategy in 2016 and 2017, respectively.

This year, the judges said Zespri was a deserving winner of Company of the Year, recognising that its superb returns represent the culmination of its long-term premium brand-led strategy. Thanks to the company’s turnaround since the Psa outbreak in 2010, they say the kiwifruit industry is now a great success story for New Zealand innovation.
“When you look at the volumes, the tray returns, the growth in China, the share price – all those measures — the company looks very successful,” the judges added.

Given Zespri’s success, it is plain to see why Peter McBride was awarded New Zealand Herald Chairperson of the Year. In the role since 2013, he was recognised by judges for his understated style as a consultative chair, running a highly cohesive, functional board.

In his time as chair, McBride has presided over a CEO change, addressed compliance issues, seen the SFO investigation conclude satisfactorily, rolled out a new fruit variety, and pushed through greater transparency in the way Zespri allocates fruit.

McBride recently announced his intention to step down as Zespri chair early next year, but the board say the changes he shepherded through will provide long-term sustainability for Zespri, and are a testament to how strong the co-operative is.

Restaurant Brands chief executive Russel Creedy was named Deloitte/ServiceNow Chief Executive Officer of the Year.

The judges said outstanding returns for investors that the food franchiser has delivered are recognition of Creedy’s leadership style, particularly given constant industry disruption, which Restaurant Brands is not spared from. Shares in Restaurant Brands are worth around 900 per cent more than they were when Creedy took over as chief executive in 2007 — a key reason for Restaurant Brands being included as a finalist this year for Company of the Year.

The Sheffield Visionary Leader for 2018 was Marilyn Waring. The judges say this prestigious award not only recognises a person important in New Zealand’s political history but also someone who has shown original, visionary thinking and application in the economic sphere.

ASB bank’s Jon Raby was awarded Chief Financial Officer of the Year. The judges say Raby fulfils the core strengths of highly successful CFO’s by leading a finance function that produces highly accurate financial statements, and using his financial knowledge to partner with the CEO and business to drive shareholder value.

In his six and a half years in the job, the bank’s financial results have gone from strength to strength – from a net profit in 2012 of $685m to a net profit this year of $1.177b – the second consecutive year the bank has made more than a billion dollars.

After being a finalist in the category last year, Sanford took out the MinterEllisonRuddWatts Excellence in Governance award.

New Zealand’s biggest and oldest seafood company aspires to be the best seafood company in the world, and is acutely aware that the company’s future depends on its long-term sustainability.

Sanford places a strong emphasis on the sustainable growth of its business and on being a good corporate citizen — actions that are well-documented in their strong integrated reporting which has been recognised as a leader in the market.

Iconic New Zealand brand Skellerup took out the OneRoof.co.nz award for Most Improved Performance this year, ahead of finalists Kathmandu and Kordia.

Skellerup impressed the judges with continued growth in international markets and they described the diversified business as a healthy New Zealand story.

Fulton Hogan picked up the 2Degrees award for Best Growth Strategy. The judges say the infrastructure construction and road maintenance firm has a standout growth strategy and has been a great performer in an industry where others have not succeeded.

SKYCITY’s group-wide policy for the board of directors to set measurable objectives to promote diversity, along with clear programmes and initiatives in place, saw it recognised with a win in the Ministry of Business, Innovation and Employment Diversity and Inclusion Leadership category.

Caroline Rawlinson was recognised as the Eagle Technology Young Executive of the Year for her humility, self-awareness and strong commercial acumen. The judges said the chief financial officer at Trade Me “showed an impressive ability to adapt her leadership style to different sectors, including building products and consulting, as well as different parts of the world.”

The Deloitte Top 200 list includes publicly-listed and private companies, NZ subsidiaries of multinational companies, co-operatives, societies and state-owned enterprises.

The primary financial figures for the Top 200 as well as New Zealand’s Top 30 finance companies have been produced in full toward the back of this Dynamic Business 2018 report — showing revenue, profitability, efficiency and more.

These numbers offer an insight into how the biggest companies in New Zealand operate and are accompanied by explanations and insight from the Herald’s team of business reporters.

The high-level story for the Top 200 this year is growth.

Total revenues rose by 7.7 per cent compared with the 2017 figure, underlying earnings (EBITDA) rose by 6.9 per cent. This indicates that Top 200 companies have done an impressive job of reducing costs by a far greater degree than the fall in revenue.

Fourteen companies made their debut on the Top 200 this year. Most notable was poultry producer Inghams, which debuted at 109th place with revenue of $396 million.

Year-on-year asset growth for the Top 30 finance companies outpaced last year’s figures, up 2.5 per cent — but a smaller increase than the 7 per cent seen last year. Cumulative profits also increased by 15.4 per cent.

Of the big four banks, ANZ continues to lead the way with $154.0 billion in assets, outranking its closest competitor Westpac by $58.3b. This year is the first time in several years where there has been a change in rankings between the biggest banks. ASB has beaten BNZ to take third place, increasing total assets by 7.7 per cent.

Chairperson of the Year: Peter McBride of Zespri

Peter McBride, Chair of the national kiwifruit export marketer Zespri, has presided over what is expected to be New Zealand’s fastest-growing primary export sector in the year ahead, according to Government forecasts.

“Unlike other countries, co-operatives in New Zealand are more influential in the economy,” says Deloitte Top 200 judge Dame Alison Paterson. “The primary sector — of which co-operatives are so influential — is a huge driver of the economy.”

McBride has been a director of the grower-owned company since 2002, and chairman since 2013. In his time as chair, he has presided over a CEO change, addressed compliance issues, seen the Serious Fraud Office investigation conclude satisfactorily and pushed through greater transparency in the way Zespri allocates fruit.

The Top 200 judges say the management of these matters has generated significant value for Zespri and its owners, and helped contribute to a steady share price rise over the past five years, record grower returns for 2018 and 2019, and significant wealth created for the grower families that depend on Zespri for their income. It is for all these reasons they chose to name McBride New Zealand Herald Chairperson of the Year.

McBride says the empathy he has with stakeholders has formed a defining aspect of his governance style.

“We make massive decisions that impact on ordinary New Zealand farming families, and that is a profound responsibility and something quite different to normal corporate governance,” he says.

McBride is described by judges as being a consultative chair, running a highly cohesive, functional board.

“He lets the board fully participate in decisions to an extent that a lot of other chairs do not,” says Dame Alison.

McBride puts that down to his governance style, where he aims to empower people and trust them. “I trust my directors deeply — you have to bring out the best in people,” he says.

Over the past three years, Zespri has undertaken a change in its capital structure and an affirmation of its single desk status that has gained the support of over 90 per cent of its growers.

Part of this capital structure included a share issue and buyback, which required constitutional changes and for some shareholders to vote in favour of changes that they may not have benefited them individually, but were considered by the board to be in the best interests of Zespri long-term. These include a cap on shareholding and the dividends of dry shareholders to cease after a period.

The judges believe these changes that McBride shepherded through will provide long-term sustainability for Zespri, and are a testament to how strong the co-operative is.

At the time of McBride’s announcement as chairman-elect in 2012, the kiwifruit industry was in the middle of the Psa crisis.

“While the industry has had a very tough time from Psa, and its impacts will continue to be felt for a number of years yet, I believe we will overcome the disease,” said McBride at the time.

“As Zespri chairman, I will be committed to doing all I can to navigate the industry through these current tough times and returning it to its long-term growth path.”

Psa had the potential to gut the New Zealand kiwifruit industry, wiping out the high value Hort16A gold variety in the Bay of Plenty and eroding grower returns.

Dame Alison says at the time of the crisis, McBride had to front up as a leading grower director.

“The whole industry was shut down, and innovative growers were hit the hardest,” she says. “Families lost their whole income, and when a company is in crisis, it falls on the chair.”

Now, eight years on from when the bacterial disease first appeared in orchards and six years under McBride’s leadership, the industry has rebounded after developing new varieties resistant to Pseudomonas syringae pv actinadiae — better known as Psa — and export volumes are thriving.

McBride recently announced his intention to step down as Zespri chair in February 2019, but the judges say he leaves the co-operative — and the industry — in great shape.

“Under McBride’s chairmanship, Zespri has demonstrated its ability to innovate, produce gold, sell it with massive returns and do wonders for its various stakeholders into the future.”

Finalist: Liz Coutts

Seasoned director and chairperson, Liz Coutts has an impressive resume. She is currently chair of Ports of Auckland, Oceania Healthcare, and Skellerup Holdings — as well as holding a number of directorships. Last year, she also became the Institute of Directors’ first female president.

Coutts says each of the diverse companies she chairs are rewarding in their own way, as they are all growing, and all making progress.

“That doesn’t mean to say that we don’t have road bumps along the way — but they are all making progress. Keeping them in that calm, steady state — and quietly getting on — I find that very satisfying.”

The Deloitte Top 200 judges credit Coutts’ ability to empower companies to perform for their successful results and wise strategic directions.

Coutts, who was made an Officer of the New Zealand Order of Merit in 2016 for her services to governance, became the first chairwoman of Ports of Auckland in 2015, and has presided over a shift towards a more open and transparent, sustainable, and innovative port.

As chair of Oceania Healthcare, Coutts saw the residential aged care provider through its initial public offering in 2017. Just a year since its dual-listing on the Australian and New Zealand stock markets it has delivered a strong net profit after tax result, increasing 71.5 per cent to $77m and exceeding IPO forecasts.

The aged care industry is set for a bright future, as the baby boomer generation approaches an age where they are turning their minds to residential care. Coutts says delivering on this need is one of the most rewarding aspects in her position at Oceania.

“People want to know there will be places for them to live and people to care for them. We are a care company, for which there is very much a need in society,” she says.

“It’s very rewarding to be involved in providing for that need.”

Skellerup has seen similar positive results, with the rubber-goods maker delivering a record profit this year — rising 23 per cent to $27.3 million and revenue up 14 per cent to $240.4m — driven by strong sales growth both in New Zealand and internationally.

In her nearly 20 years as a full-time director, Coutts’ has seen a remarkable change in women in leadership — but she says we have more progress to make.

As President of the Institute of Directors, Coutts hopes to create awareness of the benefits of diversity:

“To be successful, it’s a matter of people wanting to do it.

“We need to have the discussion, create awareness, and demonstrate that diverse views and being inclusive helps you to reach long-term, sustainable goals.”

Finalist: David Pilkington

David Pilkington is described by the Top 200 judges as a high-quality independent director who has been influential in a series of successful companies.

But Pilkington says if he had it his way, he wouldn’t be a finalist for this category: “I don’t really like these things. I like to just fly along under the radar.”

He describes his style of governance as helping people get the best out of themselves.

“For me, it has been about really understanding what is the critical competitive advantage of a business, and how to enhance that — while ensuring we have a team at management and the governance level that can provide the ultimate support to deliver and continue to deliver year after year.”

Pilkington is the chair of Port of Tauranga, Douglas Pharmaceuticals, and Rangatira.

Under his chairmanship, Port of Tauranga has exceeded market expectations, achieving a profit increase this year of 13 per cent to $94.3 million and record annual earnings.

Pilkington attributes the success of the Port of Tauranga to having a clear strategy around its $350 million capital investment programme, which has been very closely linked to its ability to grow the business.

“We completed our capacity expansion programme in 2016 and the effects were almost immediate,” he says.

“We are seeing larger container vessels as well as larger bulk cargo and passenger ships.”

It is this foresight that the Deloitte Top 200 judges say has seen the companies Pilkington is involved in do incredibly well.

Pilkington was commended by the judges for being influential in his work with Douglas Pharmaceuticals.

He has also been a director of diversified investment firm Rangatira since 2006, and chair since 2013.

Rangatira — whose investments include Hellers, Polynesian Spa, Rainbow’s End Theme Park, and Mrs Higgins — operates a flexible investment management strategy that allows it to work alongside owners to maintain what it is that has made the company successful.

He sits on the remuneration committee and is chair of portfolio company Hellers — another success story that he puts down to “the flexibility and willingness to shape what we do around the needs of a very successful business owner”.