News

PureCircle sales rise 26%

4 Mar 2016

PureCircle has announced its interim results for the six month period from 1 July 2015 to 31 December 2015 ("1H FY 16").

Sales increased 26% to $54.5m, with growth in all regions and across all ingredients.

PureCircle sales rise 26%

PureCircle has announced its interim results for the six month period from 1 July 2015 to 31 December 2015 ("1H FY 16").

Sales increased 26% to $54.5m, with growth in all regions and across all ingredients. Gross margin increased 56% to $22.6m, with gross margin % up 8 points to 42%. Adjusted EBITDA increased 108% to $13.5m. Net profit improved $6m to $5m, generating EPS of three cents per share.

The company said that the global stevia market has continued to develop strongly across 1H FY16 with adoption deepening across a wider range of Food and Beverage (F&B) categories enabled by our innovation. Mintel data shows that by end CY2015 more than 9,000 F&B products had been launched using stevia with more than 70% of these occurring within the last 3 years. The data also indicates that the depth of category penetration and the size of brand adopting continues to increase, including widening adoption in major F&B categories such as dairy, carbonated soft drinks, teas and sauces. Further, the data confirms increasing F&B product reformulations, as opposed to just line extensions, and deeper calorie reductions: both trends demonstrate growing F&B brand commitment to stevia.

“Despite continued uncertainty in global economies and capital markets, during 1H FY16 all key industry trends have continued to develop in favour of stevia,” said Group CEO Magomet Malsagov. “Regulators, politicians and F&B companies in all regions are being challenged to find solutions to obesity and diabetes. Mintel data shows that stevia is being used increasingly as part of the solution.”

“In 1H FY16 we again strengthened our position as market leader with further proprietary product innovation and growth in both delivered sales and project pipelines. To support our sustained long term growth prospects, we are expanding our production capacity.”

“Reflecting the development of stevia into a mainstream ingredient for Food and Beverage products, in October 2015 we transferred our market listing to the Main Market of the London Stock Exchange (LSE). After seven successful years on LSE AiM we believe the Main Market will provide a more appropriate share trading platform to support the next stages in our development.”

“With increased adoption of PureCircle stevia solutions by the global F&B industry the Company is confident of significant medium to long term growth in sales and profitability. Growth in profitability is already evident in our 1H FY16 results and we expect more in 2H FY16. However the trajectory of our sales growth will likely be uneven and is dependent on the pace and extent of customer roll-outs.”