LONDON (Alliance News) - Food and drinks flavouring company PureCircle Ltd Wednesday said it narrowed its losses in the first half of the year, driven by strong volume growth in the period, and a 32% increase in sales for its all-natural, no-calorie sweetener and natural flavour systems.
In a trading update in January, the natural sweeteners provider said it was expecting to swing to a half-year operating profit after reporting that first-half sales figures are likely to rise by nearly a third.
At the time it said that it expected total volumes of high purity stevia sweeteners and natural flavours to increase by 34%, driven by "new innovations" in its no-calorie sweeteners and natural flavourings. Stevia is a South American herb used as a natural sweetener.
PureCircle said Wednesday that those sales grew by 37% for the six months ended December 31 2013f, and revenues for the first-half rose by 32% to USD34.9 million, up from USD26.4 million the prior year, while total sales volumes increased 31%.
On the back of strong revenue and volume growth, the group said it narrowed its net losses in the first half to USD1.9 million, compared with USD6.9 million a year earlier.
PureCircle said it swung to an operating profit of USD2.9 million for the period, compared with an operating loss of USD2.9 million the prior year.
Its gross profit margin improved 15 percentage points to 35%, up from 20%.
The Group said that within the last year, it has opened application laboratories in the UK, China and Mexico and sales offices in Turkey and India.
It said it is "adequately" funded for its current business needs, with net debt of USD84.8 million as at December 31 2013, and cash and funding headroom of USD59 million.
The company did not declare an interim dividend.
PureCircle shares were trading 1.9% lower before midday Wednesday, at 628.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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