Ecoya on track for 2012 profit, breaks even at EBIT level in first half

Thursday 13th October 2011

Ecoya, the scented candle and skin-care products company, said it is on track to post a modest profit this year, helped by earnings from its Trilogy acquisition. The shares jumped 6.7 percent to 96 cents.

Unaudited revenue for the first half climbed to $10.4 million from $4.4 million a year earlier, the company said. Earnings before interest and tax were $240,000 in the six months ended Sept. 30, from an EBIT loss of $2.6 million a year earlier.

Interest costs of $240,000 and IFRS adjustments for the Trilogy earn-out of $720,000 resulted in a net loss of $720,000, the company said. Its first-half financial statement will be released on Nov. 30.

The first-half results bode well for the second half, which includes the Christmas period and typically generates more revenue, Ross said.

Ecoya’s backers include executive chairman Geoff Ross, who drove the successful global rollout of the 42 Below vodka brand, and are hoping for similar success marketing candles and skin-care products.

They’ve had to put additional funds into the business starting at its IPO in 2010, with the company needing to do more work to win over investors to a stock that first sold at $1 and most recently traded at 90 cents.

Still, it has attracted high-profile shareholders including Trade Me founder Sam Morgan, Air New Zealand chief executive Rob Fyfe and American entertainment veteran Rich Frank.

Ecoya gained an existing distribution network with the acquisition of Trilogy for $10 million cash and earn-out payments of as much as $10 million.

Trilogy chief executive and founder Sara Gibbs has joined the Ecoya board.

BusinessDesk.co.nz

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