Ecoya was tracking below its 2017 sales due to a soy wax shortage. Photo/File.
Trilogy International has warned annual earnings may fall short of official guidance after a volatile quarter for its Ecoya scented candles and uncertainty as to the timing of some Lanocorp beauty products orders.
The Auckland-based company affirmed guidance for earnings before interest, tax, depreciation and amortisation to be $20 million
in the year ending March 31, while at the same time acknowledging risks to that forecast could shave off as much as 10 percent.
"TIL notes that trading in the last three months has been relatively volatile with Ecoya brand sales lower than expected," the company said in a statement. "In addition, there are orders for both Trilogy and Lanocorp that may or may not close around balance date. These factors could negatively impact FY18 earnings by up to 10 percent."
The warning comes ahead of this week's special meeting in Auckland, where shareholders will decide on whether to accept a $211 million takeover offer by China's Citic Capital Partners. The $2.90 a share offer fell within independent adviser Grant Samuel's valuation range of between $2.59 and $2.94 per share and 31.2 percent shareholder the Business Bakery has said it will support the offer.
The Grant Samuel report said Ecoya was tracking below its 2017 sales due to a soy wax shortage but was predicting fourth-quarter revenue of more than $5 million on wider margins as raw material supply returned to normal. It also noted Lanocorp was forecasting quarterly revenue of $5.7 million due to increased sales from a partnership with Wal-Mart.
