TIL
23/09/2015 10:04
FORECAST
PRICE SENSITIVE
REL: 1004 HRS Trilogy International Limited
FORECAST: TIL: TIL 1H 2015 revenue and profit to beat August guidance
NZX and Media release 23 September 2015
Trilogy International 1H 2015 revenue and profit to beat August guidance
CS Company acquisition to make a strong contribution to the full year result
Trilogy International Limited (NZX:TIL) today announces that revenue and
earnings for the six months to 30 September 2015 will exceed guidance given
in August as the group benefits from strong demand for its products in
domestic and offshore markets and a weakening kiwi dollar.
Excluding the contribution from its recent acquisition of beauty and cosmetic
distributor CS Company Limited, Trilogy expects revenue for the half year to
rise 57% to $24 million from $15.3 million for the same period in the prior
year. On the same basis, half-year net profit is expected to rise 336% to
$4.8 million from $1.1 million in the prior year.
On 3 August 2015, before announcing the CS Company acquisition, Trilogy said
it expected half year revenue to reach $23 million and half year net profit
to reach $3.5 million.
For the year to 31 March 2016, including the impact of the CS Company
acquisition, Trilogy expects revenue to rise 104% to $75 million from $36.6
million and earnings before interest and tax (EBIT) to range between $12
million to $14 million. The company expects net profit before tax to range
between $10 million to $12 million up from $4.6 million in the prior year.
Interest costs are expected to be approximately $2 million for the full year
with around one quarter expensed in the first half of the year and the
remainder expensed in the second half. .
CS Company, acquired on 19 August 2015, is expected to contribute an
additional $5m million to group revenue for the half year to 30 September
2015 and operating profit of $800,000. After financing and acquisition costs,
its contribution to half year net profit is expected not to be material.
For the second half, CS Company is expected to contribute approximately $22
million revenue to the group and $3.5 million to net profit.
Speaking ahead of the Trilogy International Annual Meeting at the Sofitel
Auckland at 12.30pm today, Chairman Geoff Ross said: "The Board continues to
be very pleased with the performance of Trilogy's flagship brands. Meanwhile,
our recent acquisition, CS Company, is making an important contribution to
the group."
Trilogy International Chief Executive Officer Angela Buglass said: "Trilogy's
home markets of Australia and New Zealand are performing extremely well for
each of the three brands.
"The weakening New Zealand Dollar against the US and Australian currencies
has had a positive impact on trading with realised and unrealised foreign
exchange gains contributing around $700,000 in this half."
Additionally, the group has benefited from a boost in sales following media
reports that the Duchess of Cambridge is an avid user of Trilogy rosehip oil.
The recently-launched Goodness skincare brand also made a contribution.
"Goodness, which is aimed at a younger audience, is off to a great start in
New Zealand and Australia and it has opened new channel opportunities," Ms
Buglass said.
"Revenue growth will likely exceed profit growth as the company continues to
invest in export markets, brands and additional staff."
Over the last half year Trilogy has made significant strides in Asia and the
US, where it recently secured distribution through the Whole Foods Market
chain of specialist supermarkets. Whole Foods operates 405 stores across the
US and specialises in high quality natural and organic products.
The full AGM presentation and speech notes will be posted on NZX during the
AGM.
For more information contact:
Angela Buglass Geoff Ross
Chief Executive Officer Chairman
+64 21 848 293 +64 21 42 219
About Trilogy International
Trilogy International (NZX:TIL) manufactures and distributes specialty
natural skin care and home fragrance products through three brands: Trilogy,
ECOYA and Goodness in New Zealand and around the world. Its recently acquired
subsidiary CS Company distributes international brands in New Zealand
including: Marc Jacobs; Calvin Klein; Dolce & Gabbana and Gucci fragrances
and Max Factor, Natio and OPI cosmetics and beauty brands. For more
information visit: http://trilogyproducts.com/investors/
End CA:00270582 For:TIL Type:FORECAST Time:2015-09-23 10:04:56