Ecoya provides earnings upgrade and continues growth

22 April 2013

Ecoya provides earnings upgrade and continues growth trajectory

Ecoya Limited (NZX:ECO) has today outlined its guidance for the year ended 31 March 2014 and confirmed it expects to exceed previous market guidance for the 31 March 2013 year.

Revenue is expected to be $26.6M for the year ended 31 March 2013 representing an 18% year-on-year increase. At EBITDA for the full year, Ecoya expects a profit of greater than $1.1M which is up on the breakeven prediction made in November last year. This update is based on unaudited financial statements and the company will announce its final audited result for the year prior to 31 May 2013.

The company outlined its growth initiatives at its AGM in September 2012 including significant investments in product, packaging and brand. The forecast profit result at EBITDA has been achieved on the back of the platform built in the first half of the year.

The Ecoya group expects this growth to continue and is forecasting revenue in excess of $30M for the year ended 31 March 2014, with a forecast EBITDA profit in excess of $2M for the full year.

The Ecoya business is seasonal with the Christmas gifting period falling within the second half of the financial year. The group expects a similar seasonal profit in the coming financial year, as was experienced in the year ending 31 March 2013.

The business continues to grow with opportunities both locally and within the international markets.

Key recent wins include the expansion of Trilogy’s distribution and reach in the UK market via all 27 John Lewis stores throughout Great Britain, and a distribution deal with Sigma, a leading wholesale and distribution business to pharmacy and owner of three of Australia’s best known pharmacy retail brands – Amcal Max, Amcal and Guardian. The group has over 450 stores nationwide and the new retail partnership gives Trilogy core product ranging in all stores.

Revenue for Trilogy in Australia is up 30% on last year making Australia the biggest market for the Trilogy brand. Trilogy now represents 60% of total group revenue.

At 31 March 2013 net debt was $6.6M down from $8.4M at 30 September 2012, resulting in headroom of $2.9M on a total facility of $9.5M. The company plans to further reduce net debt through continued positive trading.
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