Trilogy declares first dividend as annual profit more than triples

Trilogy forecasts net profit to rise to more than $4 million in the 12 months ended March 31 from $1.26 million a year earlier. Image supplied.

Trilogy International, the skincare products and scented candle maker, announced its first dividend after annual profit more than tripled on Australian sales growth and the first earnings from its Ecoya candle brand.

Profit rose to $4.5 million in the year ended March 31, from $1.1 million a year earlier, the Auckland-based company said in a statement.

Sales increased 23 per cent to $36.6 million. The board declared a 3.66 cents per share dividend.

Chairman Geoff Ross said the ongoing dividend policy will be dependent on future growth and acquisition opportunities, but the board intended to keep the payout ratio between 45 per cent and 55 per cent of after tax earnings.

The result beats Trilogy's March forecasts, when it flagged profit would more than triple while sales would grow at least 18 percent.

The company had already beaten expectations for first-half earnings when it reported in November, with strong Australian sales of its Ecoya brand candles accounting for about 42 per cent of revenue.

"Both brands performed strongly and profitably during the period, in particular in the New Zealand and Australian markets, with Ecoya moving into profitability for the first time," said chief executive Stephen Sinclair.

"In Australia, the new distribution agreement for Trilogy with McPhersons Consumer Products (MCP) helped to deliver very good results in that market, plus the Ecoya brand grew strongly."

Sales in Australia rose 38 per cent to $18 million, making up half of its overall revenue.

New Zealand sales increased 15 per cent to $10.2 million. UK sales rose 7.8 per cent to $2.4 million, US sales dropped 6.2 per cent to $776,000, while the rest of the world sales increased 18 per cent to $3.6 million.

Trilogy shares rose 2.2 per cent to 95 cents, and have gained 29 per cent since the start of the year.