Geoff Ross says Ecoya and Trilogy have grown in New Zealand and overseas despite tough trading conditions. Photo / Dean Purcell
Start-up beauty business Ecoya expects to make a profit in the next financial year despite tough retail trends here and overseas.
For the current financial year, which ends tomorrow, the candle and body-care company said prior audit results indicated revenue of $13.8 million.
The figure is higher than the $7.9
million the company expected when it listed in March last year.
The increase is mainly because of the acquisition of Wellington-based skincare brand Trilogy.
Trilogy was taken on to grow Ecoya's brand in Europe and especially in Ireland - both regions where Trilogy has good traction.
The company is expected to make a $4 million net loss for this financial year after listing expenses of $500,000 and Trilogy's acquisition expenses of $170,000.
For the next financial year, starting Friday, Ecoya expected revenue of more than $20 million and believed the group would be in profit.
Ecoya executive chairman Geoff Ross said Ecoya and Trilogy have grown in New Zealand and overseas despite tough trading conditions.
Ross said Trilogy continued to grow in Britain and Ireland and Ecoya was building a reputation in the United States and Asia.
"Synergies in operating the two brands will continue to be delivered next year," Ross said.
Ecoya said Trilogy had accelerated the company's revenue growth and the move towards profit.
"In the US we have moved from being in eight Bloomingdales stores to 20. We have secured accounts such as Four Seasons Hotels and Fred Segal.
"Ecoya is currently rolling out an extensive body care range, giving the group a full offering of home fragrance, body care and skincare products.
"The body care category is worth US$22 billion [$29.3 billion] worldwide and is in growth."
Ross said Australia was Ecoya's largest market and sales were building in chains such as David Jones.
In New Zealand Ecoya's range, which is sold in Redcurrent gift stores, is generating the highest sales of any body care and home fragrance brand the retail chain has stocked.
The audited result will be released to market in May.
Shares in Ecoya closed up 3c to 75c.
