Trilogy International reports record annual profit

Trilogy International reports record annual profit and first dividend

Trilogy International Limited (NZX: TIL) today reported its audited annual results for the financial year to 31 March, 2015, confirming more than 300% net profit growth, on the back of revenues which were up 23%.

Revenue was $36.6m, up from $29.8m for the year prior, and net profit after tax was $4.52m, up from $1.07m.

The company also announced it will pay its first dividend, at 50% of after tax earnings ($2,261,719), which is equivalent to 3.66c per share. The dividend will be fully imputed and will paid on 17 June 2015.

Chairman, Geoff Ross, said the ongoing dividend policy will be subject to the needs of the business to support future growth and/or acquisition opportunities, but the policy and intent of the board is to pay a dividend in the range of between 45% and 55% of after tax earnings.

CEO, Stephen Sinclair, said both the Trilogy and Ecoya brands were profitable over the period.

“Both brands performed strongly and profitably during the period, in particular in the New Zealand and Australian markets, with Ecoya moving into profitability for the first time,” he said.

“In Australia the new distribution agreement for Trilogy with McPhersons Consumer Products (MCP) helped to deliver very good results in that market, plus the Ecoya brand grew strongly.”

Ross said the company believes there is more profitable growth to achieve in Australia / New Zealand.

“However, now that these markets are performing well, we are also looking to invest in and focus on accelerating growth in some other key international markets - in particular Asia, the United Kingdom and the United States,” he said.
“We recently announced the appointment of Angela Buglass to group CEO, effective 1 July 2015, with a view to leveraging her hands-on experience growing beauty and cosmetics brands in those markets to support our growth ambitions.
“We are very lucky that at the same time our current CEO, Stephen Sinclair, who has guided the business into profitability, will remain in the business through a transition period, as well as continue on as a board member, so we don’t lose his expertise.”

Sinclair said other recent key hires included a senior Trilogy person on the ground in Asia, as well as plans to relocate a senior sales person to the UK with responsibility for growing the UK / Europe and United States markets. “We are encouraged by some key wins in these markets over the period, including Trilogy signing ‘Wholefoods’ as a key retail partner in the United States, as well as a deepening relationship with high-end UK department store, John Lewis, for Ecoya, which has translated into very pleasing success on-line and in-store.”

The business also made a key strategic move into the grocery channel via a new brand – Goodness – this year. “This allows us to participate in the grocery channel without risk of diluting the Trilogy brand,” Sinclair said. “It’s early days but the initial response from the market has been positive.”

Looking to the future, Ross said the business is expecting continued revenue growth, with an increased investment in international markets, for FY16. “We realised the benefit of some tax losses in Australia this year, which we won’t have again next year. “Overall though, we are operating from a strong position now, with both the brands and balance sheet in good health.

“I’d like to formally acknowledge and thank Stephen for the significant contribution he has made over the past 3 years as CEO to guide the business to this point.

“We all feel very positive about the opportunities in front of us and the future of the business.”

Ends.

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