PureCircle Limited PRECLOSE PERIOD UPDATE 2H FY 2014 (1860L)

TIDMPURE

RNS Number : 1860L

PureCircle Limited

02 July 2014

PURECIRCLE LIMITED

("PureCircle" or the "Company")

PRECLOSE PERIOD UPDATE 2H FY 2014

PureCircle (LSE: PURE) the world's largest producer and marketer of high purity stevia today provides a pre close period update in respect of its second half to 30 June 2014 (2H FY2014). The Company's results for the full year FY2014 will be announced on Monday 15 September 2014.

Sales

In 2H FY2014 sales are expected to be US$66m giving not less than US$101m for the full year FY2014.

There was growth in sales across all our range of proprietary ingredients and customizable ingredient combinations primarily driven by new innovations in our proprietary Stevia 3.0 TM portfolio of all-natural, no-calorie sweeteners and natural flavor systems. By region, EMEA, Latin America, Asia Pacific and USA all recorded sales growth.

Margins

FY2014 growth in sales volumes and revenues will result in variable and gross margins, operating profit and net result being higher than those achieved in FY2013. Directionally the Group's FY2014 Operating profit is expected to be US$ 17m (FY2013 US$ 1m), net result is expected to be positive (FY2013 net loss of US$ 9m) and the Group's EBITDA is expected to be US$ 20m (FY2013 US$ 9m).

Cashflow and net debt

The Group expects to end FY2014 with net debt of US$ 86m (FY2013 US$ 77m) and cash and funding headroom of US$ 60m (FY2013 US$ 55m).

During 2H FY2014 the Group increased production in anticipation of expected increase in market demand in FY2015.

Commenting on the 2H FY2014 trading update, PureCircle CEO Magomet Malsagov said:

In FY2014 we accelerated our pace of growth with further increase in sales and significant improvements in profitability.

Our strategy of introducing new and innovative ingredients and customizable ingredient combinations to meet growing market needs is winning business for PureCircle. We are generating revenues from a wide range of natural sweetener and flavor products and from a wide range of customers and global regions directly and through our business partners.

Recent Carbonated Soft Drinks launches with PureCircle's natural ingredients, most notably reformulated Cola drinks by major soft drink companies into large markets, provide enhanced confidence of sustainable sizeable growth for our business. Our supply chain and our business model is designed to support larger volumes. In turn we would expect higher revenues to translate into further improved profitability."

Notes:

1. Sales for FY2013 have been restated for IFRS 11, Accounting for Joint Ventures, the impact of which is to reduce FY 2013 sales by $1m from those previously reported

2. EBITDA is defined as EBITDA with costs of the Group LTIP programme and similar items added back

 
 Enquiries: 
 
 PureCircle Limited (www.purecircle.com) 
 Magomet Malsagov, CEO                      +603 2166 2066 
 William Mitchell, CFO                      +44 7974 005 163 
 
 RFC Ambrian Ltd (NOMAD)                    +61 8 9480 2500 
 Stephen Allen

NOTES TO EDITORS

PureCircle is the global leader in production and marketing of high purity stevia ingredients. PureCircle leads the industry with development of a vertically integrated, sustainable and natural supply chain. Stevia is grown for PureCircle across South America, Africa, Asia and the United States where it provides a sustainable cash crop for farming communities. As part of the company's proprietary Stevia 3.0 TM portfolio, PureCircle has developed a broad range of ingredient solutions and has pioneered such ingredients as Reb A, SG95, and breakthrough ingredients such as PureCircle Alpha, Reb D, Reb M as well as PureCircle Flavors. PureCircle also established joint venture partnerships with sugar industry leaders to innovatively combine stevia and sugar for natural sweetening solutions and locally support customers. These global partnerships include Tereos PureCircle Solutions, with Tereos and NPSweet A/S with Nordzucker, in Europe. As part of its industry leadership, PureCircle pioneered the trust mark Stevia PureCircle(R), which educates consumers about the benefits of stevia and provides a strong base of trust for both consumers and food and beverage companies alike. The company also founded The Global Stevia Institute, (www.globalsteviainstitute.com ) the leading resource for accurate, science-based information on stevia led by a global advisory board of internationally recognized health professionals. PureCircle's global headquarters are in Kuala Lumpur, Malaysia. PureCircle is listed on the London Stock Exchange AiM market under the ticker symbol: PURE. For more information on PureCircle, visit: www.purecircle.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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