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Trilogy responds to share tumble

NZ Newswire logoNZ Newswire 9/02/2017 Rebecca Howard

Trilogy International, the skincare and home fragrance company, says it continues to comply with stock exchange continuous disclosure rules after its shares took a tumble.

In a letter to Trilogy, the NZX sought an explanation noting Trilogy's shares dropped to $2.48 on February 9 from $3.39 on January 9, a fall of 71 cents or 22 per cent. On Friday the shares were up 1.6 per cent at $2.55.

Lindsay Render, the chief financial officer for Trilogy, responded that it continues to meet its obligations.

Hamilton Hindin Greene director and client adviser James Smalley says the shareholder base is significantly bigger after its capital raising in mid-2016 and the share price may be getting pushed around by a few short-term investors opting to sell down their positions.

Even after the capital raising "it's still a relatively thinly traded stock ... and a simple thing like that can affect the share price in the very short term," he said.

Mr Smalley noted the company's financial year ends March 31 and investors will be watching for any market updates ahead of its May reporting date.

"The proof in the pudding will always be in the result," he said.

Trilogy's brands include Ecoya candles, Trilogy and Goodness. It also owns CS & Co, the country's largest independent importer and distributor of fragrances and toiletries, which it bought in August 2015.

In November, Trilogy confirmed earlier guidance for 2017 revenue of $100 million to $110m, a gain of between 20 per cent and 32 per cent over 2016's $83m of sales, and earnings before interest, tax, and depreciation of $19m to $21m, from $16.3m in 2016.

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