42 Below posts $5.22m loss

Although it nearly trebled sales, vodka and gin maker 42 Below today posted a $5.22 million net after tax loss for the year to March as it continued to invest in the key US market.

The company said its sales for the year at $12.18m were up 176 per cent on the same period last year but at an ebitda (earnings before interest, tax, depreciation and amortisation) level it lost $5.10 million.

42 Below chairman Grant Baker said the result was in line with directors' expectations and consistent with previous announcements.

He said with revenue in the second half of the year had been higher than in the first while ebitda losses had declined at the same time.

Mr Baker said it was "very gratifying" for the company to achieve $12.18m revenue in the first full year since listing.

He said 42 Below had total current assets of $13.8m including $7m of cash and no borrowings.

The company sold 68,586 cases of product in the March year, an increase of 200 per cent from the March 2004 year.

Revenue per case had dropped slightly with the company's Australian sales now not including an excise tax component.

42 Below's New Zealand business had been in profit for the full year, while it said its UK operation was now "consistently in profit" and Australia was "close to break even".

The company said the USA remained its "single largest opportunity and its biggest overhead" but it would continue to invest in order to build market share there.

Meanwhile, 42 Below chief Geoff Ross also said the company was planning to announce the launch of new products within the next two weeks.

C ase sales continue to be strong in the first six weeks of the new financial year with the company recently selling its millionth bottle of vodka.

42 Below shares will begin trading on the NZSX today at 60c, 10c up above their October 2003 initial public offer price.

- NZPA