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(Sharecast News) - Biopesticide specialist Eden Research said in a trading update on Monday that it expected a 72% increase in full-year revenue for 2023, to £3.1m, surpassing market expectations by £0.3m.
The AIM-traded firm flagged a 63% increase in product sales to £2.6m, aligning with market projections, and an EBITDA loss of about £1.2m, excluding share-based payments, which would be £0.7m better than market forecasts.
It was anticipating a year-end cash position of £7.4m, slightly below market expectations of £7.8m.
On the operational front, Eden Research said its product sales showed impressive growth despite challenging growing conditions affecting demand for fungicides.
The appointment of Corteva France as Eden's distribution partner for Mevalone, marketed as Esseva in France, contributed to the growth, given France's reputation for high-quality agricultural output and substantial fungicide usage in the viticulture sector.
There was potential for expanding Esseva's applications for treating mildews pending regulatory approvals.
In 2023, Mevalone gained approvals in New Zealand, Ireland and Poland, and sales of Cedroz also resumed after resolving production-related issues.
In the US, Eden secured multiple state-level approvals for Mevalone and Cedroz, and
following California's approval after the year-end, more significant Mevalone sales were expected in the US in 2024.
Ecovelex, Eden's seed treatment product, obtained temporary approval in Italy for bird-repellent use in maize for the 2024 season, facilitating sales to Corteva.
The company said it was optimistic about its outlook for 2024, anticipating robust product sales growth driven by Ecovelex sales, expansion of Mevalone and Cedroz market share, and approvals in additional territories.
Eden's recent successful fundraise of £9.9m would meanwhile support product development, expansion into new markets, and overall growth.
"In 2023 Eden achieved several key regulatory and commercial milestones resulting in solid sales performance and revenues which have exceeded market expectations," said chief executive officer Sean Smith.
"A particular highlight was the granting of a temporary approval of Ecovelex in Italy for use as a bird repellent seed treatment in maize for the 2024 growing season, marking the first commercial sales of not only a new product, but an entirely new product category; an exciting milestone which gives an early indication of the long-term commercial viability of that product.
"The commencement of sales of Mevalone for use in California following regulatory approval was also an important event and provides us with access to a significant addressable market, which we hope to further capture in 2024."
Looking ahead, Smith said the firm's successful fundraise in 2023 would allow it to expedite the development of its existing product portfolio, expand into new geographies and develop new product opportunities.
"In 2024 we will continue to build on the progress made this year to drive sales growth, step-up commercial activity and push forward apace with our product plans."
At 1321 GMT, shares in Eden Research were up 6.67% at 6p.
Reporting by Josh White for Sharecast.com.
