PureCircle Limited PRECLOSE PERIOD UPDATE FY 2015 (2068S)
July 06 2015 - 2:00AM
UK Regulatory
TIDMPURE
RNS Number : 2068S
PureCircle Limited
06 July 2015
PURECIRCLE LIMITED
("PureCircle" or the "Company")
PRECLOSE PERIOD UPDATE FY 2015
PureCircle (LSE: PURE) the world's largest producer and marketer
of high purity stevia today provides a trading update in respect of
its financial year to 30 June 2015 (FY2015). The Company's results
for the full year FY2015 will be announced on Monday 21 September
2015.
Sales
Sales in the second half FY2015 (2H FY2015) are expected to be
US$84 million giving not less than US$127 million for the full year
FY2015, an increase of 26% against FY2014 sales of US$101
million.
FY2015 sales have been adversely impacted by the weakening of
certain sales' currencies (eg Mexican Peso, Euro) relative to the
US$. On a constant FY2014 US$ exchange rate basis, FY2015 sales
would have increased 31% to US$ 132 million.
In FY2015 there has been growth in sales across all geographic
regions driven by accelerating market adoption of stevia, enabled
by our range of proprietary ingredients and customizable ingredient
combinations. Mintel has reported 627 new products launched using
stevia in the quarter to 31 March 2015, which represents a 28%
increase over the number launched in the same quarter in 2014.
PureCircle continues to lead the growth of this market and our
project pipeline gives us confidence that future sales growth at
these rates is sustainable.
Margins
As noted in our 16 March 2015 Interim results statement, there
has been a tightening of leaf supply in China which will impact our
FY2015 margins adversely. The company is actively addressing this
with increased investments in South America and Africa leaf
development to better balance its future leaf supply.
In addition our FY2015 gross margin has been reduced by foreign
exchange. The US$5 million sales impact was only partly offset by
weaker cost of sales currencies giving a net US$3 million adverse
gross margin impact.
Despite this, we expect the FY2015 growth in sales volumes and
revenues to result in gross margin 9%, EBITDA 16% and net profit
73% higher than FY2014 comparatives at US$40 million, US$25 million
and US$4 million respectively.
Cashflow and net debt
The Group expects to end FY2015 with net debt of US$53 million
(FY2014 US$80 million) and cash and funding headroom of US$82
million (FY2014 US$66million).
Commenting on the FY2015 trading update, PureCircle CEO Magomet
Malsagov said:
In FY2015 the global stevia market has again grown with more
than 6,500 products across all categories now launched using stevia
ingredients, mainly enabled by PureCircle's innovative product
portfolio. The size and range of products now in market and of
customers using stevia as a core part of their ingredient mix gives
us confidence in the increased future demand for PureCircle stevia
ingredients. Accordingly in FY2015 we kicked off expansion in our
production capacity, which is due to come on stream in FY2017.
Our company and the business are at a stage of evolution where
critical mass and top-line growth is important. We are pleased that
in FY 2015 the Company maintained momentum and delivered yet
another year of strong sales growth and despite challenges firmly
established our business in profitable territory. Our entire range
of proprietary ingredients and customizable ingredient combinations
contributed to that growth. With increased investments in leaf
diversification we expect leaf costs to normalize over time.
Further, this diversification will also help our foreign exchange
exposures.
Stevia products are still in the roll-out phase in many
important markets and until market consumption smooths out, growth
will come with a lumpy sales profile and therefore some volatility:
this adds some complexity to our ability to provide guidance in the
short term. However we are confident of the Company's future
prospects and of continued long term sales growth and
profitability."
Enquiries:
PureCircle Limited (www.purecircle.com)
Magomet Malsagov, CEO +603 2166 2066
William Mitchell, CFO +44 7974 005 163
RFC Ambrian Ltd (NOMAD) +61 8 9480 2500
Stephen Allen
NOTES TO EDITORS
PureCircle is the global leader in production and marketing of
high purity stevia ingredients. PureCircle leads the industry with
development of a vertically integrated, sustainable and natural
supply chain. Stevia is grown for PureCircle across South America,
Africa, Asia and the United States where it provides a sustainable
cash crop for farming communities. As part of the company's
proprietary Stevia 3.0 TM portfolio, PureCircle has developed a
broad range of ingredient solutions and has pioneered such
ingredients as Reb A, SG95, and breakthrough ingredients such as
PureCircle Alpha, Reb D, Reb M as well as PureCircle Flavors.
PureCircle also established joint venture partnerships with sugar
industry leaders to innovatively combine stevia and sugar for
natural sweetening solutions and locally support customers. These
global partnerships include Tereos PureCircle Solutions, with
Tereos and NPSweet A/S with Nordzucker, in Europe. As part of its
industry leadership, PureCircle pioneered the trust mark Stevia
PureCircle(R), which educates consumers about the benefits of
stevia and provides a strong base of trust for both consumers and
food and beverage companies alike. The company also founded The
Global Stevia Institute, (www.globalsteviainstitute.com ) the
leading resource for accurate, science-based information on stevia
led by a global advisory board of internationally recognized health
professionals. PureCircle's global headquarters are in Kuala
Lumpur, Malaysia. PureCircle is listed on the London Stock Exchange
AiM market under the ticker symbol: PURE. For more information on
PureCircle, visit: www.purecircle.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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