New Image full-year revenue dropped 17%

New Image full-year revenue dropped 17%, reflecting kiwi dollar’s strength

July 5 (BusinessDesk) - New Image Group Ltd., which develops colostrum-based health tonics, said sales dropped 17% last financial year, mainly reflecting the impact of a strong kiwi dollar. It predicts a pick-up in 2011 sales on demand from Asia.

Unaudited revenue was $81.7 million in the 12 months through June 30, down from $98.1 million a year earlier, the company said in a statement today. Sales fell just 6% if measured in the local currencies of its main Asian markets, it said. Adverse currency movements sliced about $10.5 million off annual sales.

“Growing consumer confidence and recently revised GDP forecasts of between 4.8-6% for the company’s main Asian markets, the directors anticipate a solid lift in revenues for FY2011,” it said.

Sales in Malaysia fell 37% to $35.7 million, or 28% in local currency terms, with discounting of the company’s main product partly to blame. Taiwan sales rose 16% to $32.5 million, or a 33% gain in local currency terms.

Brand sales doubled from May to June and forward orders rose, after the company appointed regional commission agents in the final quarter of 2010. At the same time, the company reined in costs.

The company will release its audited full-year results on August 28. The shares last traded on July 1 at 31 cents.

(BusinessDesk)

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