PureCircle losses deepen on lower sales, inventory writedown
Source - SMW
Sweetner supplier PureCircle booked a deeper first-half loss after sales slipped and it wrote down the value of its inventories.
Net losses for the six months through December amounted to $22.1m, compared to losses of $4.0m on-year.
Sales fell 5.2% to $50.7m, though the company managed to eke out a profit before exceptional items of $2.9m.
The company did not declare a dividend.
'In first half we continued to successfully implement our new strategy of transforming the business to produce and sell superior tasting natural stevia sweeteners, scaling breakthrough products and commercialising new technologies,' chief executive Magomet Malsagov said.
Malsagov said reformulations had led to some cannibalisation of base business and the first-half results should be seen in that context.
;Over and above new business we anticipate cannibalisation of the base business to continue through calendar year 2019,' he said.
'We expect margins to strengthen as both reformulations and new launches will primarily be based on high margin products.'
'We are pleased with the early wins and positive feedback we are getting about the great taste profile of our next generation stevia Reb M sweeteners.'
At 8:36am: (LON:PURE) PureCircle Ltd share price was -1.75p at 245p