LONDON (Alliance News) - PureCircle Ltd, a producer and marketer of stevia sweetener, on Tuesday said improving profit margins will keep the company on track even if not all of its expected sales close before the end of its financial year in June.
In a statement, Chief Executive Magomet Malsagov said the "trajectory" of PureCircle's sales growth will be "uneven" and "dependent on the pace of customer roll-outs".
"Although the precise level of our short-term growth is uncertain, our operating margins continue to strengthen, which gives us confidence in the increasing future profitability of the group," Malsagov said.
Trading in the three months to March 31, the third quarter of PureCircle's financial year, was "strong" with sales growth in line with the first half, the company said.
PureCircle said it has within its fourth-quarter pipeline more than USD40 million of sales projects "subject to the timing of our clients launch plans where we do not yet have full visibility on when these launches will occur".
Even when assuming that not all of those projects begin in the fourth quarter, PureCircle said it expects year-on-year sales growth for the full-year to be no less than 10%.
At forecast foreign exchange rates, PureCircle said "strong improvements" in profit margins are expected to continue across the remainder of its financial year, so that "even if not all sales projects close" the company still expects net profit to be in line with market expectations.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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