Toys, sporting goods and confectionery distributor Funtastic expects to make a in the first half of its fiscal year, partly because of slower international sales.
Funtastic said its preliminary assessments indicate revenue in the six months to January 31 will be in the range of $50 million to $54 million, and it expects and earnings loss of between $2.5 million and $4.5 million.
The estimates are not definitive, it said.
"This expected loss is due to the deterioration in the company's second quarter performance which has primarily been driven by softer-than-expected international sales, lower domestic margins and additional one-off rationalisation costs," Funtastic said in a statement.
The company had taken steps to ensure a return to profitability in the second half of fiscal 2015, it said.
Funtastic had secured a number of new products that when launched in Australia and in key overseas markets would increase sales, it said.
Funtastic would also expand its Chill Factor range of slushy, ice cream and jelly makers, and continue to benefit from earlier cost-saving initiatives.
Shares in Funtastic fell sharply, and were down 0.8 cents at 2.2 cents at 1234 AEDT.
Funtastic will report its finalised half year results towards the end of March.
Funtastic provided the earnings guidance in response to a query from the Australian Securities Exchange in relation to movement in its share price on January 23.
Funtastic said it was aware that an institutional shareholder had been required to reduce its shareholding and had been doing so since mid-December.
Funtastic believed that this was not based on any market sensitive information regarding the company.
Share
