By Phil Boeyen, ShareChat Business News Editor
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Friday 1st March 2002 |
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The organics company formerly known as Aquaria announced a loss of $1.2 million late Friday on sales of $71,000 for the year end December. The sales figure was much lower than the forecast $588,000.
CER explains that the difference is due to "a self-imposed decision to withhold commercialisation of our patented organic weed control product, Organic Interceptor, until all regulatory consents have been received."
"The decision to hold back marketing the product was a hard one to make, especially as overseas and local interest has intensified as awareness of its capabilities have become better know," the company says.
"However, it was felt to be in the company's best interests if our initial product launch was seamless across NZ and Australia, and across the home and agricultural product range."
CER claims the delay had minimal impact on its latest result but in the year ending December 2002 it is likely to have revenues of around $2 million and an operating deficit of $1.5 million rather than the modest surplus originally forecast.
The company says it expects to be given regulatory approval for commercial use of the product in New Zealand mid-year while Australian approval should follow late in the year.
"Our marketing is now out of phase with the timing outlined in the Information Memorandum, and our focus is now on the 2002 summer selling season in Australia and NZ, and the Northern Hemisphere's 2003 summer selling season."
Despite the delays the company believes that the work it has carried out in the first five months of operation, which has been to OECD and EPA standards, should shorten regulatory approval times for the US and European markets.
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