Grim news for Charlie's

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Fairfax Media

GLOOMY: Juice maker Charlie's expects to make a net loss in the range of $1.8 million to $1.95 million for the full year.

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Juice maker Charlie's expects to make a net loss in the range of $1.8 million to $1.95 million for the full year.

The company said that based on financial information available to date, it also expected to post negative earnings before interest tax and depreciation (EBITDA) in the range of $950,000 - $1,050,000.

The juice maker posted a full year net loss to June 2008 of $425,000.

Charlie's chief executive Stefan Lepionka said the company had not escaped the substantial softening in consumer spending experienced by the retail market in New Zealand.

"However, while New Zealand sales have weakened we have continued to grow our Australian business, leading to a positive increase in overall sales for the year."

In an update to the stockmarket, Charlies said there had been a  31 percent  increase in Australian sales and a 21 percent increase in export sales.  

Australian sales make up 15 percent of Charlie's total sales, and the company expects its Australian sales to equal New Zealand route sales within five years.

Lepionka warned however that with the changing environment in New Zealand, the company would be taking steps to tighten operating costs in the New Zealand business.

"We expect to see these benefits flow through in the 2010 financial year."

The company said that 3.7 million options to subscribe for shares were exercised by directors and management yesterday, raising $370,000.

The juice maker recently breached its banking covenants and continues to search for a suitor after recent offers failed to meet the board's asking price.

Lepionka said last month the company had received a number of approaches from interested parties over recent months, regarding the acquisition of all or parts of its business.

"[But] despite indicative interest from various industry participants at or around current market pricing, the board has determined that none of the approaches are an attractive level at this time," Lepionka said at the time.

Charlie's will release its audited results for the year to 30 June 2009 in late August 2009.

- © Fairfax NZ News