Corporate reporting season likely to show 'costs are still rising', expert says

The corporate reporting season will go into full swing next week and an expert anticipates many companies' results won't spell good news for Kiwi consumers.

Reporting season is when New Zealand businesses post their results, showing shareholders and investors how they've performed over the past 12 months. 

Milford Asset Management portfolio manager Frances Sweetman said many businesses were feeling the pinch - and the results were expected to show costs are still rising.

"We've had a couple of little insights over the last few weeks with companies that have either guided to what they're going to report in the next few weeks," she told AM. "For example, Restaurant Brands, that run all the KFCs, are seeing really high chicken costs and that means their profits are under pressure."

Sweetman said glass producer Metro Performance Glass had also indicated it would raise prices by 5 percent again next month. 

"From what we're hearing across all different sectors, costs are still rising and companies are going to keep trying to put prices up."

She said a good indication of how the economy was tracking would be the results from the likes of logistics companies.

"They deliver across all different parts of the economy and that's real-time, what customers are demanding now - so that's great information."

And what about Fletcher Building? 

"We haven't heard from them for a month or two when they were still seeing demand really strong but, with what house prices are doing, that one's going to be really interesting," Sweetman said.

Watch the video for the full interview.