Pure Circle unveils sweet half-year results

PureCircle posted an 80 per cent increase in half-year sales Wednesday, driven by demand for the company's high purity stevia sweeteners and natural flavours.Sales for the last half of 2012 came to $27.4m, compared to $15.2m in the previous six-month period. Stevia sweeteners and natural flavours contributed $26m of the sales with growth recorded in Europe, the Middle East, Africa, Latin America, Asia Pacific and the US. Gross profit rocketed to $5.2m, up from $1.7m in the prior half, reflecting increased volumes and sales.Earnings before interest, tax, depreciation and amortisation came in at a loss of $0.5m, a $8.1m or 94% improvement on the first half, as the company reduced its expenses and enhanced its gross margin by $3.5m.PureCircle also cut its net debt from $70.7m to $66.3, as it secured 200 new customers boosted by strong performance in Europe and the Americas."Our strategy of having a fully controlled, vertically integrated supply chain from leaf to finished products, of successfully developing and introducing to the market new proprietary natural sweeteners and flavours, of investing in applications and formulations as well as in global marketing and customer service capabilities, is beginning to yield results as can be seen by our performance in the first half of this fiscal year," Group Chief Executive Officer, Magomet Malsagov, said. He said new long-term supply and joint development agreements with major global food and beverage companies have been signed, including deals to provide sweeteners and flavours for carbonated soft drinks.Looking ahead, the company expects revenues to grow on the back of demand in food and beverage as the industry works to reduce calories in products.RD