(Alliance News) - Plant Health Care PLC on Wednesday said that the first half of 2023 was "very challenging" but sees itself on track to grow revenue exponentially by 2025.
The North Carolina-based maker of biological products for agriculture said in the first half of 2023, pretax loss was USD2.5 million, narrowed from USD6.3 million a year prior. Revenue was virtually flat at USD5.6 million.
Total operating expenses decreased 38% to USD5.9 million from USD9.6 million. Notably, it reported a foreign exchange gain of USD18,000 in the first half of 2023, swung from a loss of USD3.6 million a year before.
Chief Executive Officer Jeff Tweedy said: "Market conditions in [the first half of] 2023 have been very challenging for traditional agricultural input businesses, with most large companies reporting significant reduction in revenue. The US has been particularly difficult, with all distributors sharply reducing inventory to reduce the impact of price volatility and slow demand. Most of the agribusiness companies saw significant revenue decline in the first half of 2023 as compared to last year."
Looking ahead, Plant Health said it expects a strong second half "with material revenue growth anticipated". It anticipates revenue for 2023 to be in line with market expectations.
Further, it expects revenue to grow to USD30 million by 2025 due to the growth of Harpin, a seed treatment product that delivers higher yields, and the launch of new peptides.
CEO Tweedy said noted continued strong demand and interest in the company's products: "The world has an ever-increasing need for more food with sustainable agriculture at the heart of meeting this need. Farmers face many challenges, including the impacts of climate change such as drought, to ensure food security," he said.
Plant Health Care shares fell 17% to 7.22 pence each on Wednesday afternoon in London.
By Tom Budszus, Alliance News reporter
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Plant Health (PHC)