Last checked at 21 Dec 2018 07:00
21 December 2018
PLANT HEALTH CARE plc
("Plant Health Care" or the "Company")
Update on 2018 trading
Plant Health Care®, a leading provider of novel patent-protected biological products to global agriculture markets, provides the following update on trading in 2018.
Key points
- The Company's revenue in 2018 is expected to be broadly in line with last year.
- The launch of a new Harpin αβ product into corn with our major US partner has made a very encouraging start and delivered sales close to $1.5m. Following discussions with our partner, we have now agreed to delay the planned launch into soy, which has comparable market potential, into 2019.
- Expectations for revenue in 2019 remain unchanged.
A significant proportion of the Company's annual sales are concluded in the final weeks of the year. Overall we now expect total sales to be broadly in line with those achieved in 2017.
The launch of a novel Harpin αβ product into corn with our major partner in the US has made a very encouraging start with sales to date close to $1.5m. However, following discussion with our partner, the launch of a new product for the soy crop, which has comparable market potential, has now been delayed, with its associated revenues, until 2019.
In South Africa, which has been a major contributor in prior years, prolonged drought has resulted in slower draw-down than expected on in-market inventory. As a result, we have decided to restrict sales until inventory has been worked off.
Sales in Brazil continue their positive trend in sugarcane, in line with expectations. Market entry into soy will provide further upside; although an additional shipment to Brazil may fall into 2019 due to delays in clearing customs.
The balance of these factors means that the Company's revenue in 2018 will be broadly in line with 2017 and materially below market expectation.
Chris Richards, Executive Chairman and Interim CEO of Plant Health Care noted: "While the shortfall against expectations is extremely disappointing, our expectations for sales in 2019 are unchanged. We are very encouraged by progress in the US and Brazil. The shortfall in 2018 does not affect the Board's confidence in the Company becoming cash positive no later than 2020, within our existing cash reserves."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Plant Health Care plc
Chris Richards, Executive Chairman and Interim CEO Tel: +1 919 926 1600
Jeffrey Tweedy, Commercial Head, Americas
Arden Partners plc - Nomad & Broker
John Llewellyn-Lloyd / Dan Gee-Summons Tel: +44 (0) 20 7614 5900
IFC Advisory - Financial PR
Graham Herring / Miles Nolan / Zach Cohen Tel: +44 (0) 20 3934 6633
Company website: www.planthealthcare.com