Acer Computer New Zealand profit more than doubles

Acer Computer New Zealand more than doubled its annual profit in 2025 despite reporting largely unchanged revenue, as lower operating expenses and a tax benefit offset softer gross margins.

The distributor of computer hardware and related services reported profit after tax of NZD $319,298 for the year ended 31 December 2025, compared with NZD $110,531 a year earlier. Revenue was broadly stable at NZD $26.55 million, compared with NZD $26.57 million in 2024.

Profit before tax fell to NZD $183,557 from NZD $245,634, reflecting weaker operating performance before the impact of taxation. A tax benefit of NZD $135,741, compared with a tax expense of NZD $135,103 in the previous year, lifted the company's reported net profit. The benefit primarily reflected an adjustment relating to prior years.

Margins narrow

Gross profit declined to NZD $2.31 million from NZD $2.77 million as cost of goods sold increased while revenue remained almost unchanged.

Cost of goods sold rose to NZD $24.25 million, up from NZD $23.80 million in 2024. Gross margin, therefore, came under pressure during the year.

Distribution expenses fell sharply to NZD $257,698, compared with NZD $514,874 in the prior year. Administrative expenses also declined to NZD $1.99 million from NZD $2.18 million. Those lower costs partly offset the weaker gross profit.

Operating profit decreased to NZD $59,464, compared with NZD $79,038 a year earlier. Net finance income also eased to NZD $124,093 from NZD $166,596, contributing to the lower pre-tax result.

Balance sheet

Total assets increased slightly to NZD $17.77 million at year end from NZD $17.49 million.

Cash and cash equivalents declined to NZD $3.56 million, compared with NZD $4.73 million in 2024. The company added a NZD $1.00 million term deposit during the year, recorded within financial assets.

Trade receivables rose modestly to NZD $6.42 million after provisions, while inventories increased to NZD $5.97 million from NZD $5.75 million. The provision for obsolete inventory fell to NZD $390,066 from NZD $538,462.

Total equity increased to NZD $7.95 million, reducing accumulated losses to NZD $4.23 million from NZD $4.55 million. Total liabilities edged down to NZD $9.82 million.

Operations

Personnel expenses declined to NZD $1.03 million from NZD $1.16 million, reflecting lower salary costs. General overhead costs also fell significantly to NZD $26,294, down from NZD $144,542 in the previous year.

The company recognised NZD $23.10 million of inventories as an expense during the year, compared with NZD $22.38 million in 2024. Warranty provisions decreased to NZD $868,068 from NZD $936,025.

Acer Computer New Zealand remained a wholly owned subsidiary of Taiwan-based Acer through Acer Holdings International. The company continued to undertake related-party transactions covering the purchase and sale of finished goods, administration expenses and funding advances. Related-party purchases totalled NZD $25.23 million during 2025, while related-party payables at year end stood at NZD $2.70 million.

Tax position

The financial statements note that the company's taxable income is determined using transfer pricing principles that may be reviewed by tax authorities. Management said it believes the transfer pricing principles applied remain appropriate.

The company also assessed the impact of the OECD Pillar Two global minimum tax rules and concluded that no top-up tax was expected to arise for the 2025 financial year.