Despite the problems with US Customs and Border Protection (CBP) during H117, Purecircle Ltd (LON:PURE) has reported an encouraging set of FY results. The US CBP issues are fully resolved, and the company has continued its investment programme. The new generation of stevia is being introduced and both taste and calorie-reduction have improved. The innovation pipeline remains strong. The company is well-positioned for FY18 and hopes to regain some of the ground lost due to the US CBP issues.
Continuing to grow
FY17 sales were below FY16 due to the US CBP issues, although growth excluding North America was a healthy 8%. As a reminder, North America accounted for 34% of sales in FY16. The $42m refinery expansion was completed on schedule and within budget. This will allow the company to meet future increased demand, and the new technology will allow increased efficiency and lower manufacturing costs. Stevia remains an attractive sugar substitute due to being a highly efficient source of sweetness with zero calories. PureCircle’s stevia product is also 100% natural.
A diversified business in a unique position
PureCircle is well-diversified both by geography and by product category. Geographic diversification helps to reduce geopolitical and climate risks, while category diversification demonstrates that stevia has moved well beyond the traditional carbonated soft drinks market with which sweeteners have long been associated. Stevia now has a significant presence in other beverages (for example juices, hot beverages), and also in food categories such as dairy, bakery and confectionery. PureCircle is uniquely positioned in the industry through its vertical integration, which spans from plant breeding through to extraction and application. This allows deep expertise regarding stevia, which is backed up with intellectual property, and the company is increasingly looking to become a solutions provider for its customers, by working ever more closely with them on their innovation.
To read the entire report Please click on the pdf File Below: