Plant Health Care PLC (LON:PHC) described first-half sales of its lead product as “most encouraging” as it provided a comprehensive update in which it said trading was in line with expectations.
The provider of scientifically proven biological products for the agricultural industry said revenue for the six months ended June 30 was up 13% at U$3.5mln.
Sales of Harpin αβ, its bio-stimulant product, were US$2.4mln, ahead 26% year on year. The strongest regional performance came from Europe, the Middle East, Africa and Australia, where top-line growth was 79%.
“Sales in Europe grew strongly, particularly in citrus in Spain and in potatoes and the turf market in the UK,” said chief executive Dr Christopher Richards.
“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.”
Investors were also told that gross margins dipped three percentage points to 56% due to currency effects, while operating expenses for the period rose 18% to US$4.7mln.
That said, cash used in operations for the six months fell 29% to US$1.5mln, while the group ended the period with just over US$11mln in the bank after a successful City fundraiser in March.
“The board intends to maintain a conservative approach to cash management, targeting cash breakeven within existing cash reserves," Richards said.