REG - Plant Health Care - 2021 Trading Statement

Plant Health CareAnnouncement

01/02/2022 07:00

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RNS Number : 2092A  Plant Health Care PLC  01 February 2022

Plant Health Care plc

 

"Plant Health Care" or the "Company"

 

Trading Statement

Positioned as a leader in sustainable agriculture

 

 

 

February 1(st), 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 31(st) 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)

o  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 31(st) 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

PREtec highlights:

-      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.

 

Outlook:

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 (http://www.planthealthcare.com)

 

About Nutrien

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
(http://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
(http://www.wilburellisagribusiness.com/) .

 

 

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

 

 

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