Chris Richards of Plant Health Care discusses their growth in 2021 and significant future potential
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Chris Richards, CEO of Plant Health Care #PHC discusses their growth in 2021 and significant future potential from their PREtec platform over the coming years.
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 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
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.
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.
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