Perth-based managed investment scheme player TFS Corporation has reported a 60 per cent increase in sales over the 2008 financial year for its Indian sandalwood project.
Perth-based managed investment scheme player TFS Corporation has reported a 60 per cent increase in sales over the 2008 financial year for its Indian sandalwood project.
The company today said it had reached $54.2 million in sales (excluding GST) over fiscal 2008, compared to $34 million in the previous year.
Over the course of the year, TFS said it had accepted applications for 784 hectares for the project, which brought sales to 808ha, an increase of 44 per cent to over 558ha sold in FY07.
As a result the company said it had revised it FY08 earnings guidance to an increase in full year net cash profit after tax of between 54-58 per cent on the previous year, up from the earlier guidance of 15 per cent.
TFS expects to release its full year results in August.
Below is the full announcement:
TFS Corporation (TFS), the Western Australia-based Indian sandalwood grower, provides a trading and operational update following conclusion of the peak selling period for its related MIS product.
MIS Product Sales
TFS is pleased to advise that its 2008 Indian Sandalwood Project has closed for the FY08, having accepted applications for 784 hectares. This brings product sales for the full year to 30 June 2008 to 808 hectares, representing an increase of approximately 44% over the 558.5 hectares sold in FY07.
"We are extremely pleased with this sales result which substantially exceeds the forecast we made at the outset of the financial year, and which is testimony to the appeal of our MIS product," said Frank Wilson, Executive Chairman.
"Given the apparent decline in overall MIS sales in Australia in FY08, we believe this outcome differentiates our offering and reflects the strong long term global market outlook for Indian sandalwood products and the growing recognition of our company's future position as an industrial company supplying sandalwood oil and sandalwood by-products to the fine fragrance and cosmetics industries."
FY08 Earnings Guidance
Following this strong sales result, TFS advises that it has revised its FY08 earnings guidance to an increase in full year net 'cash' profit after tax (NPAT) over FY07 of between 54% and 58%. These forecasts exclude the impact of plantation revaluations during the year. Previously held forecasts, as originally advised on the occasion of the company's interim results release in February 2008, were an increase in 'cash' NPAT over FY 07 of at least 15%.
TFS expects to release its full year results during the week commencing 18 August 2008.
Land Development Joint Venture
TFS announces that it has acquired a 50% interest in Northern Development Company Pty Limited ("NDA"), a land development company active in northern Australia, including the Kimberley region. Consideration for the 50% interest is the issue of 200,000 TFS shares, to Mr Peter Cottle and Dr Steve Petty, the owners of the balance of NDC.
"This initiative enables TFS to utilise the extensive land development skills and experience of Mr Cottle and Dr Petty, who have been active for over 22 years in northern Australian agricultural land development and in the Kimberley region, where our plantations are located. It significantly enhances our own land development capability as we continue to assess opportunities to increase our land bank in the Kimberley region outside the Ord River Irrigation Area (ORIA)," said Mr Wilson.
After securing two further leasehold properties covering a combined 450 hectares, TFS currently possesses an available landbank of in excess of 4,300 hectares suitable for sandalwood cultivation.
"TFS is poised to build on the strong performance of FY08, as we utilise our balance sheet strength to pursue complementary growth initiatives and build on the significant steps already taken towards realising our goal of becoming a vertically integrated producer of sandalwood oil and by-products, with blue chip customers in the global fine fragrance and cosmetics industry," concluded Mr Wilson.
