Charlie’s first-half profit jumps 56% on Coles rollout

Charlie’s first-half profit jumps 56% on Coles rollout

By Jason Krupp

Feb. 23 (BusinessDesk) - Charlie's Group Ltd. posted a 56% jump in first-half profit, driven by a surge of sale in Australian, where the juice maker’s products are sold through the Coles supermarket chain.

Profit was $1.1 million in the six months ended Dec. 31, from $700, 000 a year earlier, the Auckland-based company said in a statement. The figures exclude profit from the sale of a building in the previous period.

Revenue rose 24% in the period to $17.1 million, with Australian sales surging 95% to $6.3 million after Coles rolled out the Charlie’s juice products throughout its network of 700 stores In November. New Zealand revenue rose 3.2% to $10.5 million. Earnings before interest, tax, depreciation, and amortisation rose to $2.1 million in the six months, up from $1.8 million previously.

“The past six months have seen a transformation take place in the business following the very successful launch into Coles,” said chairman Ted van Arkel in the statement. “Charlie’s Australian operation now represents 37% of total group net revenue compared with 23% last year and the directors see this as an ongoing trend in the business as our brands become entrenched in the trans-Tasman beverage markets.”

The company said it expected strong second-half sales growth as it extends its relationship with Coles, and builds sales through Park N Shop stores in Hong Kong.

Additionally it extended its Phoenix brand in South Korea, gaining a further listing in more than 300 Cafe Benne outlets, and saw additional listing in Singapore through the Cold Storage supermarket chain.

Charlie’s said its net debt had been reduced by 50% in the six months to $800,000, leaving it with a debt to equity ratio of 5%. No dividend was reported.

The shares were unchanged at 22 cents, and have risen 7.7% so far this year.

(BusinessDesk)

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