Ecoya Reaches Breakeven Point: Strong Growth Continues

13 October 2011

Ecoya Reaches Breakeven Point: Strong Growth Continues

Ecoya Limited (NZX:ECO) today announces its preliminary unaudited half year result to 30 September 2011. The final half year financial statements are being finalised and will be announced to the market by 30 November.

At $10.4 million, expected revenue is more than double for the same period last year when results included only one month’s Trilogy revenue.

Earnings before Interest and Tax (EBIT) for the six month period to 30 September 2011 are expected to be $0.24 million compared to a $2.6 million loss for the half year to 30 September last year.

To be deducted from EBIT are Interest costs for the period of $0.24 million and IFRS adjustments in respect to the Trilogy earn out of $0.72 million resulting in an expected net IFRS loss before tax of $0.72 million.

Ecoya executive chairman Geoff Ross says the company has reached its operating break-even point sooner than expected and during the slower first half of the year.

“Typically revenue picks up in the lead up to the summer season and Christmas gifting so this is a very encouraging result for us and a good platform for a stronger second half,” Mr Ross says.

Ecoya has previously indicated full year revenues in the region of $20 million or more for the 2012 year together with a modest profit.

“We are tracking well towards that result,” Mr Ross says. “The company’s overall strategy is still very much to build top line growth for our brands in key existing and new offshore markets. We aim to do this by focusing on partnerships with our distribution network and without burning cash.”

Australia continues to be the largest market for the company, for both the Ecoya and Trilogy brands. Mr Ross says Ecoya is pleased with its progress in Australia and believes there is still a lot of growth potential there.

Growth is also coming from several offshore markets particularly in the UK, the Middle East and Asia.

Mr Ross says Ecoya is releasing two new ranges prior to Christmas both of which already have significant pre-orders.

During the period under review Trilogy launched a highly successful new body bronzer which represents a new category for the brand. It also added two new lines to its successful Age Proof range.

Mr Ross says that as part of Trilogy’s ongoing product development programme the brand is working on some exciting new products for 2012.

Trilogy founder and CEO, Sara Gibbs has joined the Ecoya Board and is already playing a major role in developing new markets.

Mr Ross says Ms Gibbs is a proven entrepreneur who completely understands the category and her appointment ensures the Trilogy perspective is acknowledged and driven from the most senior level in the business.

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