3 Jul 2019 07:00
Year-end Trading Update
Chicago, Illinois July 2, 2019 - PureCircle (LSE: PURE), the world's leading producer and innovator of stevia sweeteners, provides an update on trading for the 12 months ended 30 June 2019.
The Company expects to report sales of US$125 million and EBITDA slightly below the current range of expecations for the period. FY19 has been a transitional year for PureCircle, with the launch of the latest and best tasting stevia product, Reb M. As highlighted in the Company's half year results, the Company's new strategy is focused on launch of its next generation and best tasting stevia, Reb M, which is off to a good start with many beverage and food products already in the markets of US and Europe with favourable feedback from consumers. As expected, demand for our early generation Stevia products has fallen, as customers reformulate a number of their food and beverage products based on utilising our newer generation stevia and the superior taste they deliver. In some cases, customer product launches have been rescheduled to a later date, which has moved our supply of products to them into our new financial year, rather than H2 FY19 as had initially been anticipated.
PureCircle CEO Maga Malsagov said:
"PureCircle is committed to delivering the best tasting stevia products to the food and beverage industry worldwide and our innovative new product, Reb M, has been developed in line with this mission. Our innovation has enabled us to disrupt an industry which has a strong need for natural sugar alternatives and while short term this leads to substitution of our base business, we believe it positions us strongly for the future. Naturally, it is disappointing that some new reformulated product launches have shifted to the next financial year but our agenda is focused on mid to long term and our strong project pipeline emphasises that PureCircle has the right product portfolio to capitalise on the growing demand for great tasting stevia products globally."
Enquiries
Investors/Analysts
Rakesh Sinha, CFO
Email: Rakesh.sinha@purecircle.com Phone: +1 630 827 1515
Media
Emma Kane (Newgate Communications)
Email: media@purecircle.com Phone: +44 (0) 20 3757 6880
Notes to Editors
About PureCircle
PureCircle is the only company that combines advanced R&D with full vertical integration from farm to high-quality, great-tasting innovative stevia sweeteners. The Company collaborates with farmers who grow the stevia plants and with food and beverage companies which seek to improve their low- and no-calorie formulations using a sweetener from plants. PureCircle will continue to: lead in research, development and innovation; produce a growing supply of multiple varieties of stevia sweeteners with sugar-like taste, using all necessary and appropriate methods of production; and be a resource and innovation partner for food and beverage companies. PureCircle stevia flavor modifiers work in synergy with sweeteners to improve the taste, mouthfeel and calorie profile, and enhance the cost effectiveness, of beverage and food products.Founded in 2002, PureCircle is continually investing in breakthrough research and development and it has been granted over 130 stevia-related patents with more than 250 applied for patents pending. PureCircle has offices around the world with the global headquarters in Chicago, Illinois. To meet growing demand for stevia sweeteners, PureCircle is rapidly ramping up its supply capability. It completed expansion of its Malaysian stevia extract facility in March 2017, increasing its capacity to rapidly supply the newer and great-tasting specialty stevia sweeteners and helping provide ever-increasing value to its customers.PureCircle's shares are listed on the main market of the London Stock Exchange. For more information, visit: www.purecircle.com
About stevia
Given the growing global concerns about obesity and diabetes, beverage and food companies are working responsibly to reduce sugar and calories in their products, responding to both consumers and health and wellness advocates. Sweeteners from the stevia plant offer sugar-like taste and are becoming an increasingly important tool for these companies. Like sugar, stevia sweeteners are from plants. But unlike sugar, they enable low-calorie and zero-calorie formulations of beverages and foods. Stevia leaf extract is a natural-based, zero calorie, high-intensity sweetener, used by global food and beverage companies as a great-tasting zero-calorie alternative to sugar and artificial sweeteners. Stevia is a naturally sweet plant native to South America; today, it is grown around the world, notably in Kenya, China and the US. The sweet-tasting parts of the stevia leaf are up to 350 times sweeter than sugar: stevia's high-intensity sweetness means it requires far less water and land than sugar. Research has shown that the molecules of the stevia leaf are present and unchanged in the dried stevia leaf, through the commercial extraction and purification process, and in the final stevia leaf extract product. All major global regulatory organisations, across 65 countries, have approved the use of high-purity stevia leaf extracts in food and beverages. Stevia has strong environmental benefits when compared to sugar requiring less water, less land area and having a lower carbon footprint. For more information on the science of stevia, please visit https://www.purecirclesteviainstitute.com/