Ecoya, the scented candle-maker controlled by Geoff Ross's Business Bakery, expects a smaller loss this year after sales beat forecasts by almost three-quarters and is picking a profit in the 2012 financial year.
The Auckland-based company expects to make a loss of $4 million in the 12 months ended
March 31, before accounting for a $400,000 non-cash charge on its Trilogy acquisition.
That beats the $5.2 million loss projected in a 2010 prospectus, with sales likely to be some $13.8 million this year, beating the $7.9 million earnings forecast by some 75 per cent.
The company expects sales in excess of $20 million in the 2012 financial year, pushing the bottom line into the black, as it benefits from last year's acquisition of skincare company Trilogy Natural Products Ltd.
"While I am aware that various members of the retail sector are experiencing tough trading conditions, Ecoya continues to grow, both in same store sales and in gaining positions within new stores," executive chairman Ross said in a statement.
Both Trilogy and Ecoya are in growth mode, the company said.
The company made a first-half loss of $2.6 million on revenue of $4.4 million, and expected to meet prospectus forecasts in the November result.
The shares rose 5.9 per cent to 72 cents in trading yesterday, and have increased 4.6 per cent this year.
That's just short of the 75 cents placement price and well-below the $1 float price when it listed on the NZX in May last year.
