Strong growth in Australia has helped juice maker Charlie's Group turn last year's loss into a solid profit while reducing its debt to just $1.6 million.Charlie's, which launched into Australia 20 months ago, says its earnings before interest, tax, deprec
Strong growth in Australia has helped juice maker Charlie’s Group turn last year’s loss into a solid profit while reducing its debt to just $1.6 million.
Charlie’s, which launched into Australia 20 months ago, says its earnings before interest, tax, depreciation and amortisation in the year to June 30 should be between $3.2 million and $3.4 million when the company reports audited results in late August.
That represents a strong turnaround from the $925,000 loss recorded a year ago.
The company expects a full year net profit of between $2.2 million and $2.4 million, including a $1.2 million one-off gain on the sale of its Henderson site.
While there has been a slight decline in sales in its New Zealand operations, Charlie’s is now starting to reap the rewards of moving into Australia, with double-digit growth in that market, chairman Ted van Arkel said.
Unaudited gross sales were up 1.7% to $34.34 million.
Chief executive Stefan Lepionka told NBR Australian sales now represent nearly a third of New Zealand sales and were growing at more than 40% a year. The company will provide a full segmental breakdown when it releases its audited final result in late August, he said.
“We worked our butts off and are in good stead now … it’s a great turnaround,” Mr Lepionka said.
Charlie’s main focus in Australia has been on hotels, restaurants and cafes, however it is now seeing positive progress in penetrating the Cole’s chain of grocery stores in Victoria and New South Wales, where it is trialing products in 40 stores.
Charlie's has cut net debt to $1.6 million from $7.1 million a year ago due to the earnings increase and the sale of the Henderson building.
The remaining bank debt in the group is under long term arrangements out until the third quarter of 2012.
Mr Lepionka attributed a slight decline in New Zealand sales to the economic climate.
