Plant Health Care, plc
Feb 01, 2022
February 1st, 2022 – Plant Health Care® (AIM.PHC.L), a leading provider of novel patent-protected biological products to global agriculture markets, announces its trading update for the 12-month period to 31st December. All results provided are preliminary and subject to completion of the 2021 audit.
Financial and Commercial highlights:
Revenue increased 28% to $8.4m (2020: $6.6m)
- 24% increase in constant currency
- Gross margin expanded 300 basis points to 59% (2020: 56%).
- The Commercial business increased its EBITDA and was cash positive for the period.
- The Company invested $3.7m (2020: $2.7m) during the year, as PREtec ramps up for commercial launches
- Substantial improvement in working capital
- Cash and cash equivalents as at 31st December was $9.2m
- Awarded the LSE’s Green Economy Mark
Harpin αβ highlights:
- Harpin αβ sales increased by 55% to $6.0m.
- Revenue with each of our three large distributors was over $1m for the period
- New distribution agreement with Agrii, a leading distributor in the UK, for exclusive access to Harpin αβ for all crops in the UK
- Successful launch of Saori® (PHC279), the world’s first commercial PREtec registration, in partnership with Nutrien in Brazil, the world’s largest soybean market (40m Hectares).
- Registration of PHC279 on track for first USA launch in speciality crops ($1 billion market value), in partnership with Wilbur-Ellis, in the second half of 2022, once necessary regulatory approvals have been received.
- Low-cost production agreement for PHC279 signed with a leading European-based biomanufacturing company; secures capacity to accommodate long-term growth in demand and ensures gross margin comparable to that of Harpin αβ (70 – 75%).
- PHC949 regulatory submission filed with EPA in January 2022. Product development continues with Wilbur-Ellis and other potential partners; with US launches anticipated following registration in 2023.
Post year end, we have seen continued growth into 2022 as we continue to progress to achieve scale by building key distributor relationships on a global basis.
Saori is expected to be a significant driver of growth. It has the potential to deliver disease control and yield increase worth approximately US$75 per hectare for Brazilian soybean growers, giving them an ROI of 6x or more, while reducing the use of potentially less safe agrochemicals. Brazilian soybean farmers spent US $2.85bn on disease control in the 2020/21 season.
The Board remains confident that the Company is on track to deliver cash breakeven within existing financial resources.
Chris Richards, CEO of Plant Health Care, said:
“The Commercial business is now profitable and cash generative and set to deliver profitable growth over the coming years. Strong Harpin αβ revenue growth, combined with the first of many product launches from the PREtec platform, mark a very strong year for Plant Health Care. The Company is now well positioned to become a leader in Sustainable Agriculture, as recognised by the award of the LSE’s Green Economy Mark.
“Plant Health Care has established core relationships with four of the largest global agricultural distributors, giving us scale in key markets. Harpin αβ sales growth of 55% was driven by substantial increases in all Regions. In Mexico, sales of Harpin αβ increased by 15% but third-party product sales were held back due to low crop production in H1 2021.
“The launch of Saori into Brazil the world’s largest soybean market has been well received. Sales volumes in 2021 were limited by the availability of product; however, the recently announced toll manufacturing agreement secures ample capacity to supply long-term growth in PHC279 (the active ingredient in Saori) at attractive cost for all global sales. Nutrien, our partner in Brazil, is excited about the potential for ramping up sales of Saori in 2022 and beyond.
“We plan multiple launches of PREtec products into other large markets over the coming years, following an investment of more than $25m over the last eight years. The next launch will be PHC279 for the specialty crop market in the USA, in partnership with Wilbur Ellis, in the second half of this year. The submission of the regulatory filing for PHC949 to the EPA in the USA sets the way for the first launch of that exciting product in 2023. Plans are in place for further major product launches in following years, as we build a large business from the PREtec platform.
“We have good visibility to future revenue growth expectations from our distributors and are confident that the momentum within the business will continue into 2022 and beyond. We remain on track to deliver cash breakeven within existing resources.”
For further information, please contact:
Plant Health Care plc Tel: +1 919 926 1600
Chris Richards, CEO
Arden Partners plc – Nomad & Joint Broker Tel: +44 (0) 20 7614 5900
John Llewellyn-Lloyd / Antonio Bossi
Cenkos Securities plc – Joint Broker Tel: +44 (0) 20 7391 8900
Neil McDonald / Peter Lynch
Vox Markets – Digital investor relations Tel: +44 (0) 7866 384707
Paul Cornelius / Kat Perez
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 favorable environmental profile. Company website: www.planthealthcare.com
Nutrien is the world's largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. We produce and distribute 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.
About the Wilbur-Ellis Companies
Founded in 1921, the Wilbur-Ellis companies are leading international marketers and distributors of agricultural products, animal feed, industrial chemicals, specialty chemicals and ingredients. By developing strong relationships, making strategic market investments and capitalizing on new opportunities, the Wilbur-Ellis companies have continued to grow the business with sales now over $3.4 billion. www.wilburellis.com
Wilbur-Ellis' Agribusiness generates more than $2 billion in sales revenue annually and has 160 branch locations throughout the U.S. www.wilburellisagribusiness.com.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Plant Health Care offers products to improve the health, vigor 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 favorable environmental profile.
Plant Health Care, plc
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