Ann: FORECAST: TIL: Growth underpins Trilogy Grou

• Release Date: 10/04/14 16:00
• Summary: FORECAST: TIL: Growth underpins Trilogy Group profit
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					TIL
10/04/2014 14:00
FORECAST

REL: 1400 HRS Trilogy International Limited

FORECAST: TIL: Growth underpins Trilogy Group profit

Trilogy International Ltd (NZX:TIL) said today in an earnings update that it
expects net profit before income tax for the financial year ending 31 March
2014 will be greater than $1.1m, as compared with $88k in the year to 31
March 2013.

For the year ending 31 March 2014, Trilogy expects that both revenue and
EBITDA will be in line with the previous fy14 guidance of $30m revenue and
$2m EBITDA - revenue is expected to be $29.7m, a 12% increase on the previous
financial year, and EBITDA is expected to be in excess of $2.1m, an increase
of 56%.

CEO Stephen Sinclair said this result is in line with the Group's previously
stated strategy of investing in profitable growth for its Trilogy brand and
moving the Ecoya brand into profitability.

Net debt of $3.5m at 31 March 2014 is in line with guidance and down from
$5.4m at 31 March 2013.

This earnings update is based on unaudited financial forecasts and the
company will announce its final audited result for the year prior to 31 May
2014.

Both the Trilogy and Ecoya brands are in growth, with the Group selling a
product every 17 seconds.

"Margin growth is continuing for Ecoya, as increased volume utilises
available capacity in the production facility," Stephen Sinclair said.

New product development has also continued to strengthen the Ecoya brand.

"Last month Ecoya launched the 'Celebration' candle, which sold out in three
weeks. The new 'Madison' Jar and Diffuser has also supported the ongoing
success of the core range.  And, in the next two months core product lines in
the body and bath range will also be updated," he said.

Trilogy continues to develop opportunities in international markets with a
new distribution arrangement in the UK and the appointment of sales managers
on the ground in both Asia and the Midwest region of the USA.

"As previously advised, we recently signed on 200 'Mannings' pharmacy stores
in Hong Kong, supporting our important and growing Asian market presence,
that includes well established relationships in Japan and Singapore."

The Asian skincare market is projected to be worth more than US$ 18 billion
in 2014 (Datamonitor Interactive consumer Database 2010).

In the US, 41 Whole Foods Market stores in the Midwest now represent the
Trilogy natural skincare brand and, while the US currently only represents a
small part of the overall business, Stephen Sinclair said the company is
excited about the USA opportunity and is planning further expansion, building
on its success with Whole Foods.

Mike Morgan, Whole Body Co-ordinator at Whole Foods Market Midwest, said the
Trilogy brand has been well received in the three months since its in-store
launch.

Trilogy skincare attracted attention in the UK recently when it attracted a
powerful, unpaid celebrity endorsement by fashion and beauty makeover queen
Susannah Constantine, of Trinny and Susannah's What Not to Wear fame.

Ends.

For further information please contact:
Chairman - Geoff Ross; 021 424 219
CEO - Stephen Sinclair; 021 330 053
End CA:00249349 For:TIL    Type:FORECAST   Time:2014-04-10 14:00:50