PureCircle Limited Trading Update (2428B)

TIDMPURE

RNS Number : 2428B

PureCircle Limited

05 January 2015

PURECIRCLE LIMITED

TRADING UPDATE

PureCircle (LSE: PURE), the world's largest producer and marketer of high purity stevia ingredients, today provides a trading update in respect of the six month period from 1 July 2014 to 31 December 2014, being the first half of its Financial Year 2015 (1H FY15). The Company's interim results for 1H FY15 will be announced on Monday 16 March 2015.

Sales

Sales in 1H FY15 are expected to be $43m, an increase of 24% against 1H FY14 ($34.8m).

There was growth in sales across all our global sales regions and in all of our ingredients primarily driven by new innovations in our proprietary Stevia 3.0 TM portfolio of all-natural, no-calorie sweeteners and natural flavor systems.

Margins, EBITDA and net result

1H FY15 gross margin, operating margin and EBITDA are expected to increase in line with the increase in sales revenues.

The Group's 1H FY15 net result is expected to improve at least 50% compared to net result in 1H FY14. However the full FY15 net profit benefits of the Group's geared business model are not expected to be evident until 2H FY15, reflecting the H2 weighting of sales.

Cash, net debt and funding headroom

In 1H FY15 the Group completed a $44m share placement and renewed and restructured its principal bank facilities onto a new $71m five year facility.

The Group ended 1H FY15 with net debt of $52m (1H FY14 $85m) and cash and facility headroom of $76m (1H FY14 $59m). The Group is sufficiently funded for its current expansion plans.

Commenting on the 1H FY15 trading, the Group CEO Magomet Malsagov said: In 1H FY15 we have continued on our path of systematic growth with increases in sales and improvements in profitability.

In 1H FY15 the market has seen milestone product launches and new market roll-outs by our clients, notably in the important Carbonated Soft Drink category with the roll-outs of Coca-Cola Life into the USA, Mexico, UK, France and Sweden with many other countries announced for 2015 and Pepsi True into the USA and Pepsi Next into Canada, Netherlands and Finland as well as Naturally Sweetened Dr. Pepper into the USA. These developments coupled with our strategy of introducing new and innovative ingredients and solutions to meet identified market needs and our global customer service infrastructure and smart partnerships are continuing to win business for PureCircle.

In 1H FY15 we completed a share Placement to support expansion of our supply chain and continued diversification of leaf supply ahead of anticipated sales growth. Supply chain capacity expansion is planned to commence in H2 FY15.

We are generating revenues from a wide range of natural sweetener and flavor products and from a wide range of customers directly and through our business partners. With accelerating roll-outs of food and beverage products using PureCircle's stevia solutions, particularly in the important Carbonated Soft Drink category, the Company is confident of continued sales growth and with it improvements in profitability.

5 January 2015

 
  Enquiries: 
 
 PureCircle Limited (www.purecircle.com) 
 Magomet Malsagov, CEO                      [phone] 
 William Mitchell, CFO                      [phone] 
 
 RFC Ambrian Ltd (NOMAD)                    [phone] 
 Stephen Allen 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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