2021 Half-Year Trading Statement

RNS Number : 3605G

Plant Health Care PLC

26 July 2021

 

26 July 2021

PLANT HEALTH CARE plc

("Plant Health Care" or the "Company")

Trading Update and Notification of Interim Results

Plant Health Care ^® , a leading provider of novel patent-protected biological products to global agriculture markets, provides the following update on trading in the six months to 30 June 2021.

Financial highlights:

• Revenue increased 13% (9% in constant currency) year-on-year to $3.5 million (H1 2020 $3.1 million). 

• Gross margin decreased to 56% (H1 2020: 59%) due to currency effects.

• Operating expenses increased 18% to $4.7 million (H1 2020: $4.0 million)

• Cash used in operations decreased 29% to $1.5 million (H1 2020: $2.1 million)

• $9.1 million (net of expenses) was raised in March 2021; the Company's cash reserves at 30 June 2021 were $11.1 million.

Operational highlights:

• Harpin � β revenue increased by 26% to $2.4 million (H1 2020: $1.9 million). Sales in EMEAA of $1.3 million were up 76% on H1 2020.  In-market sales in the US showed continued strong growth but sales ex PHC were flat at $0.6 million, as customer inventory reduced further.  Sales to Brazil for sugar cane ($0.3 million) were affected by drought.

• Covid-19 has impacted sales growth in Brazil and Mexico by limiting field promotion activities.

• Preparation for the launch of Saori (PHC279) in Brazil is advancing well.  The regulatory submission of PHC279 in the USA is on track, with approval expected in Q3 2022.

Dr Christopher Richards, CEO, commented:

"In-market Harpin � β sales growth in the first half of 2021 were most encouraging.  Our distributors in the USA have reported growing product adoption, in line with the prior year, in both corn and specialty crops.  Sales ex PHC to the US distributors are mostly made in the final quarter of the year. 

Sales in Europe grew strongly, particularly in citrus in Spain and in potatoes and the turf market in the UK.  In Brazil, in-market sales of H2Copla have been held back by drought and limitations on the company's technical promotion effort caused by the latest wave of Covid-19.  Sales in Mexico were held back by low export prices and Covid-19. 

The world remains an uncertain place, as shown by the effects of Covid-19 on sales in Brazil and Mexico.  The Board expects trading for the full year to be in line with management expectations.

Following the successful equity raise in March 2021, the Board has approved measured investments to accelerate the market entry of PHC279 and PHC949, which are expected to pay back in 2023 - 24.  The Board intends to maintain a conservative approach to cash management, targeting cash breakeven within existing cash reserves."

The Company expects to announce its interim results for the period ended 30 June 2021 in early September 2021.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

Plant Health Care plc
Chris Richards, Chief Executive Officer	Tel: [phone]
Jeffrey Hovey, Chief Financial Officer
Vox Markets
Katrina Perez	Tel: [phone]
Arden Partners plc - Nomad and Joint Broker
John Llewellyn-LLoyd / Antonio Bossi (Corporate Finance)	Tel: [phone]
James Reed-Daunter (Equity Sales)
Cenkos Securities plc - Joint Broker	Tel: [phone]
Neil McDonald / Peter Lynch

Company website:  www.planthealthcare.com

 

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