Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Energy Mad 1H loss widens as quality control damps Oz sales

Energy Mad 1H loss widens as quality control stymies Australian sales

Nov. 29 (BusinessDesk) - Energy Mad, which raised $5 million in an initial public offering last year to kick start sales of its energy-efficient light bulbs, widened its first-half loss after quality control issues in manufacturing a halogen bulb replacement for the Australian market. The shares dropped 8.5 percent.

The loss was $500,000 in the six months ended Sept. 30, from a loss of $300,000 a year earlier, the Christchurch-based company said in a statement. That missed its IPO forecast for a $1.7 million profit. Sales rose 47 percent to $4.8 million, about half the$9.8 million revenue it had forecast.

The company sold the shares at $1 apiece in its IPO in October 2011. They fell 5 cents to 54 cents on the NZX today, valuing the company at $20.4 million. The shares dropped as low as 49 cents on May 18.

Sales in the full year were likely to be $13 million to $20 million, missing the IPO forecast of $21.3 million.

The company has been aiming to ride a global wave of demand for energy-efficient bulbs as more countries phase out incandescent and halogen bulbs. Part of that growth is aimed to come from deals with energy utilities and other bodies via subsidies for products that save power.

Within three months of listing on Oct. 19 last year the company cut its guidance for the 2012 year, when it posted a loss of $1.1 million while saying it remained committed to its 2013 IPO targets.

In the first half of 2013 sales in its largest market of Australia fell 4.8 percent to $1.99 million, while in the US sales more than tripled to $1.6 million and sales in New Zealand jumped to $924,757 from $108,815. It made no sales in the rest of the world compared a $416,563 a year earlier.

The company made zero sales of its 12 volt Ecobulb in Australia in the first half, a $3.1 million shortfall, while sales of its 240VEcobulb downlight were $1.3 million short of target.

There was no production of the 12V Ecobulbs in the period because of required design changes, it said.

It also suffered premature failures of the 240V Ecobulb downlight which it said were due to a poor connection between the spiral tube into the downlight fitting that forced it to revise the design. As a result, Australian customers “lost confidence” in the product. It is more confident for the outlook for a new dimmable 12V Ecobulb.

To speed product development the company hired two technicians in Christchurch rather than just rely on work done at its Chinese factory.

It sees growth in US sales thanks to distribution through 8,200 outlets of retailer Walgreens.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news