Trilogy International [NZX:TIL], the skincare and scented candle company, expects to return to profit in the first half of its financial year as Australian sales pick up.
Net profit is expected to be $860,000 in the six months ending Sept. 30, from a loss of $269,000 a year earlier, the Auckland-based company said in a statement. Sales will rise 11 percent to $15 million, it said.
The company, which is 49 percent owned by The Bakery Business, changed its name from Ecoya to Trilogy in June last year to reflect the growing dominance of the skincare brand. Ecoya bought Trilogy in 2010 for some $19.2 million, with $10 million upfront and $9.2 million in cash and scrip based on earn-out targets.
In July the company appointed Australian distributor McPherson's Consumer Products and its goods are now sold in independent pharmacies and major retail chains such as Priceline and Chemist Warehouse. The company earns 82 percent of its revenue from the Australian and New Zealand markets.
In the six months, the Ecoya brand candle unit probably boosted sales 9 percent, and is expected to be "just above breakeven", from a loss of $700,000 the previous year. Its Trilogy skincare brand is seen increasing Australian sales 24 percent and is expected to exceed budget, the company said.
Trilogy said it will provide an overview of the 2014 year and more detail on the first half at its annual general meeting in Auckland on Sept. 23.
Shares of the company were unchanged at 66 cents, and have gained 1.5 percent since the start of the year.
(BusinessDesk)
Suze Metherell
Thu, 18 Sep 2014
Thu, 18 Sep 2014
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