New Image shares climb to 12-month high on bullish sales forecast

BUSINESSDESK: New Image Group, which makes colostrum-based health tonics, expects annual sales will beat $100 million after its Malaysian business underpinned a strong first quarter result and helped push the shares to a 12-month high.

The Auckland-based company turned a pre-tax profit of $3 million in three months ended September 30, compared to a loss of $1 million a year earlier, it says in a statement.

Sales grew 83% to $31.7 million in the quarter and New Image expects to post more than $100 million in annual sales. The shares jumped 50% to 24 cents, the highest level since October last year.

"There are still risks associated with our revenue forecast, and we continue to monitor the key markets," chairman Graeme Clegg says. "If the first quarter's revenue performance continues for the remainder of the year, we would expect to announce a profit well up on the previous year."

New Image made an annual loss of $6.1 million on sales of $74.7 million in the year ended June 30, which included a $2.3 million impairment charge on its Living Nature skincare brand and its sleep-enhancing milk powder, Sleep Time.

The company's failed relationship with Natural Dairy also resulted in a $1 million inventory charge, while the wind-up of the company's executive share scheme had a one-off cost of $600,000.

New Image also paid out $1.3 million in compensation to Asia Pacific vice-president Nam-Hoat Chua, who was in line to receive a 5% shareholding if the listing of the Malaysian and other entities had gone ahead, according to the company's annual report.

That made Mr Chua the highest-paid employee in the year, with some $2 million in remuneration and other benefits. He held a 2.3% stake in New Image as at September 3.

3 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

3 Comments & Questions

Commenter icon key: Subscriber Verified

Are you kidding me? The Asia Pacific VP got paid $1.3 million and $2 million remuneration and other benefits when the company made only $3 million? That's insane. What company can afford to pay 40% of profit to an employee? How can that be legal in New Zealand?

  • 0
  • 0

Shareholders can vote against it if they wish.
If you dont own stock, you have no say in the matter.

  • 0
  • 0

Looks like self serving business concept.
Good question how can this be happening in NZ?

  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.6968 0.0030 0.43%
AUD 0.8905 0.0016 0.18%
EUR 0.5920 0.0016 0.27%
GBP 0.5279 0.0018 0.34%
HKD 5.4367 0.0237 0.44%
JPY 79.2720 0.1030 0.13%


Commodity Price Change Time
Gold Index 1278.6 -9.430 2017-10-20T00:
Oil Brent 57.8 0.550 2017-10-20T00:
Oil Nymex 51.9 0.580 2017-10-20T00:
Silver Index 17.0 -0.177 2017-10-20T00:


Symbol Open High Last %
NZX 50 8124.1 8142.3 8124.1 0.07%
NASDAQ 6633.4 6640.0 6605.1 0.36%
DAX 13014.6 13014.6 12991.3 0.02%
DJI 23205.2 23328.8 23163.0 0.71%
FTSE 7523.2 7528.0 7523.2 -0.13%
HKSE 28557.8 28557.8 28487.2 -0.52%
NI225 21709.3 21723.6 21457.6 1.11%
ASX 5907.0 5925.3 5907.0 -0.22%