In a pre-close statement the producer and marketer of high purity stevia ingredients told investors revenues would be “not less than” US$138mln for the 12 months to June 30.
Underlying earnings (EBITDA) are expected to be US$37mln, while net profit is expected to have grown 275% to US$15mln. The company also said it generated positive cash flow in the period as it gave a reasonably upbeat assessment of the prospects.
It said shipments detained by US customs in May have now been released. Broker Liberum reckoned this will have acted as a drag on a busy fourth quarter of trading.
Chief executive Magomet Malsagov said PureCirle’s main markets continued to develop strongly with “favourable regulatory developments” and continued roll-out of “ever larger” food and beverage brands using stevia.
“These developments underpin our confidence in the long term prospects for our business and support the investments we are making to increase production capacity and further product innovation,” he added.
“Our business model is robust so that we are confident that as sales increase we will report improved profitability.
“But as stated in prior reports, the trajectory of our sales growth will be uneven and is dependent on the pace and extent of customers' product launches hence we caution that there will be continued volatility in the development of our business."
In the same announcement the company said effective today Rakesh Sinha takes over from the departing William Mitchell as chief financial officer.