Last checked at 29 Jul 2020 07:00
29 July 2020
PLANT HEALTH CARE plc
("Plant Health Care" or the "Company")
Trading Update and Notification of Interim Results
Plant Health Care®, a leading provider of novel patent-protected biological products to global agriculture markets, provides the following update on trading in the six months to 30 June 2020.
Financial highlights:
• Revenue was $3.1 million (H1 2019 $2.7 million) an increase of 15% year-on-year (24% in constant currency).
• Gross margin increased to 59% (H1 2019: 57%) due to sales mix.
• Operating expenses decreased 10% to $3.6 million (H1 2019: $4.0 million)
• Cash used in operations decreased 25% to $2.1 million (H1 2019: $2.9 million).$4.4 million (net of expenses) was raised in February 2020; the Company's cash reserves at 30 June 2020 were $5.1 million.
Operational highlights:
• Harpin revenue increased by 43% to $1.9 million. Revenue in the US increased 50% to $0.6 million, alongside a strong sales season in both corn and specialty crops. Sales to Brazil for sugar cane ($0.35 million) resumed, as local inventory reduces.
• Covid-19 has had limited impact on the business to date; some local revenue shortfalls have been compensated by sales growth elsewhere, but we remain cautious on potential impact in the future.
• Regulatory submissions of PHC279 in the USA and Brazil are progressing, with approval in both countries expected by 3Q 2021.
• Scaling up of production of PHC279 is in hand, in preparation for first launches before the end of 2021.
Dr Christopher Richards, CEO, commented:
"The Company's revenue growth in the first half of 2020 is a strong performance, which demonstrates the merits of exposure to agriculture, as an essential industry. The exceptional growth in the US reflects the strong support we are receiving from our major distribution partners and the resulting wide market access. In Brazil, the collapse in the price of ethanol, driven by the low global oil price, has proved a major challenge for sugar mills; on-ground sales of H2Copla have nonetheless grown strongly.
After robust sales in the first quarter, the onset of Covid-19 caused the Company to put in place cash saving measures to protect liquidity in a highly uncertain environment. While trading continued to show decent growth in the second quarter, the effects of Covid-19 have not yet played out fully around the world. The Board is therefore continuing its cautious approach and the Company will not be reinstating financial guidance at this time."
The Company expects to announce its interim results for the period ended 30 June 2020 in early September 2020.
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 Hovey, Chief Financial Officer
Arden Partners plc - Nomad and BrokerJohn Llewellyn-Lloyd / Dan Gee-Summons (Corporate Finance) Tel: +44 (0) 20 7614 5900
James Reed-Daunter (Equity Sales)
Company website: www.planthealthcare.com