PureCircle Limited Trading Update (8461D)
May 02 2017 - 2:02AM
UK Regulatory
TIDMPURE
RNS Number : 8461D
PureCircle Limited
02 May 2017
PureCircle Limited
Trading Update
Kuala Lumpur, Malaysia, May 2, 2017 - PureCircle (LSE: PURE),
the world's leading producer and innovator of great-tasting stevia
sweeteners for the global beverage and food industry, today
provides an update on trading.
On 30 January 2017, the Withhold Release Order placed on the
Company's shipments to the US was removed following a comprehensive
investigation by the US Customs and Border Protection ('CBP').
While we were pleased to report that shipments to the USA had
resumed, the rebuilding of trade to previous levels has been slower
than we had anticipated and cautioned to investors. This is
primarily due to the eight month absence in the US market of unique
PureCircle ingredients which deliver superior taste and calorie
reduction and which were therefore central to delays in customer
new product launches. The resumption of trade occurred post the key
innovation cycle planning period of our customers, hence these new
product launches have been rescheduled to later dates in order to
coincide with their commercial and marketing plans. As a result of
this interruption PureCircle now believes that revenue for the year
ended June 30(th) 2017 will be materially below market
expectations.
Despite this setback global demand for stevia products continues
to accelerate and the PureCircle pipeline of demand is strong. In
particular sales to Europe and South America have significantly
increased. Globally the number of brands now using PureCircle
products has increased by 18% year on year as health awareness
increasingly informs consumer choice. The company continues to
strengthen its market leadership in the development of new, better
tasting stevia products.
Commenting, the Group CEO Magomet Malsagov said
"I am of course, very disappointed that the growth of PureCircle
has been adversely affected this year by the CBP Withhold Release
Order, which was beyond our control. Nevertheless, we remain highly
confident in the future growth of both PureCircle and the stevia
market. We have continued to develop our newer and more innovative
varieties of stevia sweeteners and we have not lost time in
intensifying our stevia research and development and broadening our
patent protection, alongside our capacity expansion.
"In the current stevia market, we uniquely have the agricultural
infrastructure to scale up and produce stevia at significant
commercial levels to supply our customers,and have the research,
development and innovation capabilities to produce the most
advanced varieties of stevia sweeteners. These differentiating
factors, together with the skill and commitment of our people,
provide great confidence that we will accelerate the recovery of
our US business, and build on the current strong growth in the rest
of our global markets."
The Company will announce its results for the year ended 30 June
2017 on 19 September 2017.
- Ends -
Enquiries:
Investors/Analysts www.purecircle.com
Magomet Malsagov, CEO malsagov@purecircle.com
Rakesh Sinha, CFO rakesh.sinha@purecircle.com
Media
Faith Son faith.son@purecircle.com
Carolyn Clark Carolyn.clark@purecircle.com
Notes to Editors
About PureCircle
-- PureCircle is the only company that combines advanced R&D
with full vertical integration from farm to high-quality 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 using all necessary and appropriate methods of
production; and be a resource and innovation partner for food and
beverage companies.
-- Founded in 2002, PureCircle is continually investing in
breakthrough research and development and it currently has 69
stevia-related approved patents and 200 pending.
-- PureCircle has offices around the world with the global
headquarters in Kuala Lumpur, Malaysia.
-- 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 are
becoming an increasingly important tool for these companies.
-- Stevia sweeteners provide clean, sugar-like taste. 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 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 400 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.
-- For more information on the science of stevia, please visit
http://globalsteviainstitute.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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