TIL - Trilogy [formerly ECO - Ecoya]

[trader_jackson]

Punch drunk from the capital raisings (and the one to come) from PEB, I suspect.

Yes, the ARV one recently was very nice to take part in , (glad ARV is finally coming onto a few people's radars, while it would seem TIL is going off a few...)

[Beagle]

Jeez that candle division is a waste of effort

Stuff all growth - not even a 4% ebitda margin and contributed $339j ebitda in H1

Put that effort into something worth while

Forget the company was founded on candles and ditch them. ecoya without trilogy valued at 10 cents a share?

Some friends of Mr and Mrs hound import cheap nice smelling candles from China and sell them online here. They do pretty well out of them for a small home based business. I'm told all restaurants want is the cheapest candles that look okay. My nephew who owns one of the cafe's that made the top fifty Metro list here in Auckland...all I hear from him is about buying the cheapest cuts of meat and cooking them creatively and drizzling special sauce like its some sort of art form. He's one of their customers. Often times cheap and cheerful is best and as Couta1 suggested as long as there's no nasty's in it most people just want a simple moisturiser or whatever to make their skin feel smooth and young.

[co0p]

Revenues $47.8m were $18.4m higher than H116

CS revenues were $18.8m - so old Trilogy businesses effectively went backwards

Somewhat worried

Revenues for 1H17 (excluding CS) were $26.8M
Revenues for 1H16 (excluding CS) were $24.1M


So an 11% increase (factoring in the inventory adjustment its a 18% increase)

[co0p]

Did any one dial in to the conference call?

I would love to know more about the 1.2M investment in Goodness.

[winner69]

Revenues for 1H17 (excluding CS) were $26.8M
Revenues for 1H16 (excluding CS) were $24.1M


So an 11% increase (factoring in the inventory adjustment its a 18% increase)

I hear what you are saying, but .....

.....I consider 'normalisation' or whatever you want to call it is a tool to cover up the cracks if you get what I mean.

But if you are happy that's the main thing

With regard to that inventory adjustment won't TIL margins be better as they are not sharing the full margin with an external party now?

[co0p]

I hear what you are saying, but .....

.....I consider 'normalisation' or whatever you want to call it is a tool to cover up the cracks if you get what I mean.

But if you are happy that's the main thing

With regard to that inventory adjustment won't TIL margins be better as they are not sharing the full margin with an external party now?

Yeah I tend to agree with you there.

I'm not happy about the result but I'm certainly not too upset.

Yeah the margins (in NZ) should be better going forward.

One interesting bit of information was the note on intercompany sales. In the two months that CS&co were the distributor, natural products made $3M worth of sales. Assuming they can keep that up, NZ sales in the 2H17 will be approx. 9M

[Balance]

Read the bit about China - like Comvita, suspect TIL is finding the unofficial market problematic and sales have been impacted.

[horus1]

I have TIL and am holding them. 18% increase is pretty good.

[Osake]

Did any one dial in to the conference call?

I would love to know more about the 1.2M investment in Goodness.

Yes I did. No specific detail on Goodness 'investment' so figured it's inventory build plus promotions kick-start (rapid skimming). I was frankly impressed with all the responses Angela gave and the affirming comments given by Geoff and Steven. Goodness now has 2000+ sales doors after just 18 months of efforts. I believe Goodness will become the sustaining component of TIL. It's quite clear that while CS&Co has lower gross margins consequently impacting the group through to EBITDA, I still believe this acquisition is strategically smart and for the price of that investment will deliver sizable (by market comparison) and efficient distribution of both Trilogy and Goodness brands while simultaneously leveraging wider distribution synergies. Ye have faith...and will continue hold for now.

[Snow Leopard]

That extra $3.4M of Sales & Marketing had better come to something over Crimbo!

All the funnies round the acquisitions make it a little too opaque to be sure that they are actually going the right way to justify the end of day share price.

Best Wishes
Paper Tiger

Disc: Not at the moment.