Last checked at 25 Jan 2021 07:00
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PLANT HEALTH CARE plc
("Plant Health Care" or the "Company")
Trading update
January 25, 2021 - Plant Health Care®, a leading provider of novel patent-protected biological products to global agriculture markets, issues the following post year-end trading update ahead of the announcement of the Company's audited full year financial results. All results provided are preliminary and subject to completion of the 2020 audit.
Financial and Commercial Highlights:
- Revenue increased to $6.6m (2019: $6.4m); in constant currency, sales increased by 9%.
- Robust in-market sales growth of Harpin αβ resulted in a reduction of distributor inventory of more than $1m. In-market sales in Brazil sugar cane were three times those of 2019, while in-market sales to corn were 1.8 times last year. Sales of Harpin αβ to Wilbur Ellis doubled compared with 2019.
- Covid-19 impacted sales in some markets in the second half.
- Cash and cash equivalents at 31st December were $4.1m; the Company consumed $2.7m during the year (2019: $4.8m).
- Gross margin was 56% (2019: 56%).
- The Commercial business generated a positive EBITDA and cash for the first time, driven by reduced working capital.
PREtec Highlights:
- PHC279 was registered for use on soybeans in Brazil, the first ever registration of a product in Brazil from the PREtec platform, following more than $20m invested globally over the last eight years.
- The Company entered into a strategic collaboration with Wilbur-Ellis for the development of four products from the PREtec platform, for commercialization in fruit and vegetable crops in the USA.
- The Company has secured low cost manufacturing of PHC279 in support of the planned launch of the product in Brazil in the second half of 2021.
- The first PREtec patents have been granted by the US Patent Office.
Chris Richards, CEO of Plant Health Care, said
"The strong growth of on-ground Harpin αβ sales in our key markets is most encouraging. While the combination of Covid-19 and reduction in distributor inventory held back sales ex PHC in 2020, we expect in-market sales growth to translate into revenue growth in 2021. The reduced cash burn in 2020 represents important progress towards our goal of reaching Group cash positive. It is significant that the Commercial business was both profitable and cash generative in 2020, for the first time.
"Progress with bringing the first products from the PREtec platform to market has been outstanding. The Company intends to invest in bringing the benefits of PHC279 to growers in Brazil, with initial sales in the second half of 2021. PREtec product launches will follow in the U.S. from 2022 onwards.
"It has been a long haul. But after more than eight years and over $20m invested, the benefits of PREtec peptide products will soon be widely available to growers in Brazil, the U.S. and elsewhere."
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About Plant Health Care
Plant Health Care offers products to improve the health, vigour and yield of major field crops such as corn, soybeans, potatoes and rice, as well as specialty crops such as fruits and vegetables. We operate globally through subsidiaries, distributors and supply agreements with major industry partners. Our innovative, patent-protected biological products help growers to protect their crops from stress and diseases, and to produce higher quality fruit and vegetables, with a favorable environmental profile. Company website: www.planthealthcare.com
For further information from Plant Health Care plc, please contact:
Chris Richards, CEO Tel: +1 919 926 1600
Arden Partners plc - Nomad & Broker
John Llewellyn-Lloyd / Ben Cryer Tel: +44 (0) 20 7614 5900
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.