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Trilogy forecasts smaller first-half loss, softens FY guidance

Tuesday 24th September 2013

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Trilogy International, which changed its named from Ecoya in June to reflect the dominance of its skincare business, forecasts a small first-half loss while tipping a second-half pickup which would help it to almost meet guidance for the full year.

The net loss will probably be $514,000 in the six months ending Sept. 30, down from a loss of $782,000 a year earlier, the Auckland-based company said in a statement accompanying its annual shareholders' meeting today. Sales probably rose to $13.6 million from $12.2 million.

The skincare product and scented candle company said sales in the full year would rise 13 percent to $30 million, generating operating earnings of about $2 million. At its 2013 earnings release in April, it had expected to exceed those figures.

Shares of the company were unchanged at 69 cents, and have fallen 30 percent this year.

"Over the past year the share price has tracked below the expectations of the board," executive chairman Geoff Ross said in speech notes for the meeting. "The underlying business however is performing very well and the business itself is in a stronger position than when the share price was at much higher levels."

"As a board we have discussed a number of strategies which include raising additional capital to further invest in our brands and growth," he said. "Our conclusion however is that greater shareholder value will be created from the existing business strategy."

Chief executive Stephen Sinclair told the meeting that for the full-year, total sales to Australia, the company's biggest market, may rise 10 percent to $13.8 million, while sales in New Zealand would be up 18 percent to $9.1 million. Revenue in the rest of the world is seen climbing 10 percent to $5.4 million.

Online sales across both brands are expected to rise 24 percent to $700,000 and retail sales at stores that opened in 2013 are seen climbing to $900,000.

Its Trilogy skincare range accounts for about 60 percent of its sales. Trilogy International's biggest shareholder is the Bakery Business LP.

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