8 May 2024
Plant Health Care
plc
("Plant Health Care" or the "Company")
Trading
Update
Plant Health
Care® (AIM.PHC.L), a leading provider of peptides
for plant protection to global agriculture markets, announces an
update for the year ended 31 December 2023 and for trading in the
first four months of 2024.
Highlights
·
Revenue in 2023 was
$11.2m (2022: $11.8m).
·
In the first four months of 2024, revenue was
approximately $4.3m, up 72% versus the same period in 2023 (2023:
$2.5m), boosted by sales to US distributors.
·
Revenue outside the US grew by 23% in 2023, driven
by strong sales of Harpinab
and PREtec; this positive trend has continued
in 2024.
·
Sales of the Company's novel PREtec peptides in 2023 increased 153% to
$2.0m (2022: $0.8m), reaching 18% of sales, driven by sales to new
and existing customers following new product
registrations.
·
Gross margin remained steady in 2023 at 60% (2022:
61%) and has improved materially in the first four months of 2024
due to increased sales of high margin Harpinab and PREtec products.
·
LBITDA in 2023 improved 32% to $2.8m (2022:
$3.5m), with further improvement expected during 2024.
·
At 31st December 2023, cash was $2.1m,
increasing to $2.3m at 3rd May 2024. Cash burn for the same period
in 2023 was $4.4m.
Operational highlights:
·
In the US, on-ground sales have started the year
strongly, with sales of Employ®
(Harpinab) through
Wilbur-Ellis currently up more than 75% against the same period in
2023; distributor inventory now appears to be rebalancing and to be
well matched to on-ground sales, following a period of destocking
in the second half of 2023.
·
In Brazil, sales of H2Copla®
(Harpinab) are
currently up 35% against the same period in 2023. For the first
four months of the year, our distributors in the US and Brazil have
reduced the inventory of our products substantially while
maintaining price.
·
Also in Brazil, the peptide nematicide PHC68949
was granted registration for commercial sale; launches under the
brand name Teikko® will take place over the coming
months. Approximately 10 distributors have expressed interest in
selling Teikko in the upcoming growing season. Due to strong
field trials results and expected high grower ROI, multiple
distributors are expressing interest in selling Teikko.
·
In the UK, an agreement
was signed with Agrii UK to commercialise PREtec technology; this product is now
being launched under the brand Innocul8.
·
The registration of Harpinab in India and of PHC68949 in the USA
are progressing more slowly than anticipated, leading to a year's
delay in both launches.
·
For full year 2023 through April of 2024 PHC has
signed 4 new distribution agreements and received 5 new product
registrations.
Outlook:
·
New registrations and distribution agreements in
2023 and 2024 point to significant revenue growth in 2024, in line
with market forecasts.
·
With increased sales in the first four months of
2024, the Company is assessing potential non-dilutive short-term
financing options to ensure it is able to maintain sufficient
working capital and financial flexibility through its typical order
cycle.
·
The audit of the Company's final results for its
financial year ended 31 December 2023 is ongoing, with the final
results and Annual Report currently expected to be finalised and
published prior to the end of May 2024.
Jeff Tweedy, CEO of Plant Health Care,
said:
"Sales of Plant Health Care products experienced significant
growth in 2023 in all regions, with the exception of the US market.
Sales in the US were held back in 2023, throughout the agriculture
inputs business, by distributors making major steps to reduce
inventory.
As
expected, strong on-ground sales of PHC products has led to a
rebound in sales by PHC in the first four months of 2024. Outside
the US, sales by PHC grew strongly in 2023 and have continued that
trend in the first four months of 2024.
PHC now markets PREtec on three continents and the launch of
Teikko in Brazil on soybeans during the 2024/2025 growing season is
an exceptional opportunity. As we grow the
Company's profitable revenue, we are taking appropriate steps to
control all discretionary costs and to live within our means,
becoming cash positive on the earliest possible
timescale."
For
further information, please contact:
Plant Health Care plc Jeff
Tweedy, CEO
|
Tel: +1 919 926 1600
|
Cavendish - Nomad & Broker Neil McDonald / Pete Lynch
|
Tel: +44 (0) 131 220 9771
|
This update is provided in advance
of the financial statements for the year ended 31 December 2023.
The information and commentary provided is based on unaudited
management accounts and other internal performance measures and is
subject to concluding the routine annual accounting adjustments as
well as any adjustments that arise as a result of the external
audit process.
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 favourable
environmental profile.
Find out more
at www.planthealthcare.com