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Charlie's tops own record profit forecast

Tuesday 24th August 2010

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Juice and soft drinks company Charlie's Group topped its own record profit forecast on record sales in the year ended June 30.

The company's bottom line annual net profit of $2.5 million compares with a $1.8 million net loss the previous year. Its $1.3 million net profit from core operations, excluding the $1.2 million profit from the sale of its Henderson factory, compares with its July forecast of between $1 million and $1.2 million. As previously announced, gross sales were up 1.7% to $34.3 million.

Charlie's latest profit is only the second in its history and far more substantial than the meagre $33,000 net profit it reported for the year ended June 2007. Charlie's listed in July 2005 through the shell of former unsuccessful mining prospector cum wreck Spectrum Resources.

Chairman Ted van Arkel said Charlie's Australian subsidiary contributed $1.8 million or more than 50% of total earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.4 million, adding New Zealand was a difficult market.

The company says its result reflects rigour in all aspects of the business from revenue management to new products, cost savings and improved customer service.

“We are extremely pleased with the progress we have made over the last year in continuing to build Charlie’s as a profitable growth company,” chief executive Stefan Lepionka said. 

“Our vision for the Group is to be world-famous for our drinks and our results in Australia and other international markets in the past year is evidence that we are on our way to achieving this.”

Because it intends to keep growing, the company won't pay a dividend.

It says New Zealand sales remain uncertain while Australian sales are strong and it will invest further there to take advantage of this momentum.

Charlie's shares climbed 0.5 cents to 9.5 cents on the NZX today. They have traded between 7 cents and 10.3 cents over the last 12 months.

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