LONDON (Alliance News) - PureCircle Ltd, producer of natural sweetner stevia, Wednesday said it expects to have swung to a net profit in its financial year that just ended as new stevia products it introduced drove up sales, and it was also positive about prospects for the current year.
In a trading update, the company said it expects to report sales for the six months to June 30, its financial year end, of USD66 million, meaning sales for the year as a whole will be no less that USD101 million. Its sales in the whole of fiscal 2013 were USD71.2 million.
It said it expects its full-year operating profit to be USD17 million, up from USD1 million in fiscal 2013, and earnings before interest, tax, depreciation and amortisation to rise to USD20 million, from USD9 million in 2013. It expects to post a net profit for the 2014 fiscal year, compared with the USD9 million net loss it posted a year earlier.
"In (fiscal) 2014 we accelerated our pace of growth with further increase in sales and significant improvements in profitability," it said in a statement.
"Our strategy of introducing new and innovative ingredients and customizable ingredient combinations to meet growing market needs is winning business for PureCircle. We are generating revenues from a wide range of natural sweetener and flavor products and from a wide range of customers and global regions directly and through our business partners," it added.
PureCircle added that it expects to report that net debt stood at USD86 million on June 30, up frm USD77 million a year earlier, although its cash and funding headroom also grew, to USD60 million, from USD55 million.
The company added that it increased production in the second half of the last financial year to meet an expected increase in demand in the current financial year.
"Recent carbonated soft drinks launches with PureCircle's natural ingredients, most notably reformulated Cola drinks by major soft drink companies into large markets, provide enhanced confidence of sustainable sizeable growth for our business. Our supply chain and our business model is designed to support larger volumes. In turn we would expect higher revenues to translate into further improved profitability," it said.
PureCircle shares were up 0.4% at 605 pence early Wednesday.
The company will report its full results for the year to June 30 on September 15.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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