said it expects increased revenue for the six months to 30 June 2020 due to “exceptional growth” across the US.
The agriculture product provider saw a revenue increase of 15% year-on-year, or 24% in constant currency, from $2.7m in H1 2019 to $3.1m. Gross margin also increased to 59% compared to 57% in the first half of 2019 due to an improved sales mix.
Revenue for Harpin, the group’s protein technology for enhancing crop health and production, increased by 43% to $1.9 million while total revenue from the US increased 50% to $0.6 million, alongside a strong sales season in both corn and specialty crops, the group noted.
"The Company's revenue growth in the first half of 2020 is a strong performance, which demonstrates the merits of exposure to agriculture, as an essential industry,” said Dr Christopher Richards, Chief Executive of Plant Health Care.
Regulatory submissions of PHC’s novel peptide product, PHC279, are progressing in the USA and Brazil with approval in both countries expected by the third quarter of 2021 while the group plans to scale the production of PHC279 for its first launches before the end of 2021.
Shares in Plant Health Care have traded consistently within a range of 9.2p and 9.65p over the past month and opened flat at 9.5p this morning.
Richards added, “The exceptional growth in the US reflects the strong support we are receiving from our major distribution partners and the resulting wide market access.
In Brazil, the collapse in the price of ethanol, driven by the low global oil price, has proved a major challenge for sugar mills; on-ground sales of H2Copla have nonetheless grown strongly.”
After robust sales in the first quarter, the onset of COVID-19 caused the Company to put in place cash saving measures to protect liquidity in a highly uncertain environment, it said.
As a result of these measures and following the company’s raise of $4.4 million, net of expenses, in February 2020, the company held cash of $5.1 million as at 30 June 2020.
The group said it remains cautious on future impact despite COVID-19 having had ‘limited impact’ on the business with revenue shortfalls compensated by sales growth elsewhere.
Plant Health Care expects to announce its interim results for the period ended 30 June 2020 in early September 2020.
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