TIDMEDEN
RNS Number : 6920W
Eden Research plc
22 August 2022
22 August 2022
Eden Research
("Eden" or "the Company")
Trading Update
Eden Research plc (AIM: EDEN; OTCQB: EDNSF), the AIM-quoted
company focused on sustainable biopesticides and plastic-free
formulation technology for use in global crop protection, animal
health and consumer products industries, provides the following
unaudited trading update for the half year to 30 June 2022.
Highlights
-- Revenue is expected to be c. GBP1.0m (H1 2021: GBP0.8m) an
increase of c. 33%; on track to meet full year guidance of
GBP1.4m.
-- Product sales are expected to be c.GBP1.0m (H1 2021: GBP0.7m), an increase of c. 54%.
-- Adjusted EBITDA (excluding Share Based Payments) is expected
to be a loss of approximately GBP0.8m (H1 2021: GBP0.8m loss),
resulting in an overall loss before tax of GBP1.3m (H1 2021:
GBP1.8m loss).
-- Cash position as at 30 June balance date of GBP1.9m (HY 2021:
GBP5.8m), however, the Group had unaudited cash of GBP2.7m as of 15
August 2022 following a tax refund and receipts from half-year end
trade debtors.
-- Development of Eden's seed treatment and insecticide products
continue to progress well with positive, early indications from
2022 field trials received.
-- EPA authorisation expected before year-end for Eden's three
active ingredients, as well as Mevalone and Cedroz, allowing for
meaningful sales of both products in 2023.
Product sales growth
Sales of Eden's fungicide product, Mevalone, have been robust in
the first half of the year with the impact of Covid-19 diminishing
and demand for Eden's products returning to pre-Covid levels,
despite challenging growing conditions.
Furthermore, sales into new markets and use areas have increased
as the receipt of product authorisations translates into sales
through our distributors. The ongoing diversification of Eden's
product uses contributes not only to sales growth but an increased
level of resiliency in the business as the Company expands from one
crop and disease target, to many.
Corteva
In May 2021, Eden signed an exclusive Commercialisation, Supply
and Distribution Agreement with Corteva Agriscience ("Corteva"),
the fourth largest agriculture input company in the world. The
agreement covers Eden's first seed treatment product which uses
Eden's proprietary, plastic-free Sustaine Ò encapsulation
technology.
We have continued to work closely with Corteva and tests to date
have shown initial indications of successful trials in the current
season. We are aiming to apply for regulatory authorisation as soon
as possible which, if successful, will result in sales of the
product by Eden to Corteva in time for the 2024 growing season,
although this time frame is currently an estimate and remains
subject to submission of an application for regulatory approval by
the relevant authorities.
We are focused on the EU and UK as initial markets for this
product, which have a current addressable market of EUR40m. In
time, it is expected we will be able to commercialise the product
into other geographics, including the US, where the addressable
market is approximately EUR240 million. Eden estimates peak product
sales arising from the successful development and registration of
this seed treatment product for a specific application in all of
these territories may be at least EUR33m per year.
Insecticide
We have started to receive, collate and review results from our
own insecticide field trials from 2022.
In addition, samples have been sent out to a long list of third
parties who are undertaking their own field trials in the second
half of this year.
At the end of the year, we shall then review the outcome of the
trials and look to enter into commercial arrangements with
suitable, interested parties.
EPA authorisation
Eden awaits approval of its three active ingredients, as well as
Cedroz and Mevalone, in the US by the Environmental Protection
Agency. The approvals are expected to significantly increase the
addressable markets for Eden's products and pave the way for future
product authorisations based upon the registration of Eden's three
active ingredients.
The US has one of the largest food markets in the world and its
ongoing growth presents a significant opportunity for biopesticide
market participants. As the only AIM-quoted company focused on
biopesticides, we believe that Eden offers a unique proposition for
investors seeking to participate in the rapid growth and promising
future of sustainable agriculture. The EPA approval of Eden's
products, and subsequently, the company's insecticide offering in
the future, will open significant revenue opportunities for Eden,
with total market potential in the region of EUR500 million -
approximately EUR94m for Mevalone, EUR189m for Cedroz and EUR237m
for insecticides.
Sean Smith, Chief Executive Officer of Eden Research plc,
commented:
"The first half of the year has provided positive indications
that we are on track to meaningful product sales growth and we move
into the second half of the financial year with confidence and a
well-managed cash position.
Growing conditions may play a significant role in determining
the full year's results, but we are encouraged by the strong first
half and the underlying demand for our products which these interim
results represent.
We look forward to updating the market in due course on some of
the exciting projects we have in train and would like to thank
shareholders for their continued support."
For further information contact:
Eden Research plc www.edenresearch.com
Sean Smith
Alex Abrey 01285 359 555
Cenkos Securities plc (Nominated advisor
and broker)
Giles Balleny / Max Gould (corporate
finance)
Michael Johnson (sales) 020 7397 8900
Hawthorn Advisors (Financial PR)
Victoria Ainsworth eden@hawthornadvisors.com
Stephen Atkinson
Notes to Editors:
Eden Research is the only UK-listed company focused on
biopesticides for sustainable agriculture. It develops and supplies
innovative biopesticide products and natural microencapsulation
technologies to the global crop protection, animal health and
consumer products industries.
Eden's products are formulated with terpene active ingredients,
based on natural plant defence metabolites. To date, they have been
primarily used on high-value fruits and vegetables, improving crop
yields and marketability, with equal or better performance when
compared with conventional pesticides. Eden has two products
currently on the market:
Based on plant-derived active ingredients, Mevalone (R) is a
foliar biofungicide which initially targets a key disease affecting
grapes and other high-value fruit and vegetable crops. It is a
useful tool in crop defence programmes and is aligned with the
requirements of integrated pest management programmes. It is
approved for sale in a number of key countries whilst Eden and its
partners pursue regulatory clearance in new territories thereby
growing Eden's addressable market globally.
Cedroz (TM) is a bio-nematicide that targets free living
nematodes which are parasitic worms that affect a wide range of
high-value fruit and vegetable crops globally. Cedroz is registered
for sale on two continents and Eden's commercial collaborator,
Eastman Chemical, is pursuing registration and commercialisation of
this important new product in numerous countries globally.
Eden's Sustaine (R) encapsulation technology is used to harness
the biocidal efficacy of naturally occurring chemicals produced by
plants (terpenes) and can also be used with both natural and
synthetic compounds to enhance their performance and ease-of-use.
Sustaine microcapsules are naturally-derived, plastic-free,
biodegradable micro-spheres derived from yeast. It is one of the
only viable, proven and immediately registerable solutions to the
microplastics problem in formulations requiring encapsulation.
Eden was admitted to trading on AIM on 11 May 2012 and trades
under the symbol EDEN. It was awarded the London Stock Exchange
Green Economy Mark in January 2021, which recognises London-listed
companies that derive over 50% of their total annual revenue from
products and services that contribute to the global green economy.
Eden derives 100% of its total annual revenues from sustainable
products and services.
For more information about Eden, please visit: www.edenresearch.com .
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