Plant Health Care FY revenues down, US sales boost YTD performance

(Sharecast News) - Peptides provider Plant Health Care said on Wednesday that although full-year revenues were down in 2023, US sales throughout the first four months of FY24 had boosted year-to-date revenues.

Revenues in FY23 were down from $11.8m to $11.2m. However, in the first four months of FY24, revenue was approximately $4.3m, up 72% versus the same period in FY23, boosted by sales to US distributors.

Revenue outside the US grew by 23% in 2023, driven by strong sales of its Harpinab and PREtec assets, with this positive trend continuing so far in FY24.

Sales of the company's novel PREtec peptides increased 153% in FY23 to $2.0m, reaching 18% of total sales, driven by sales to new and existing customers following new product registrations.

Gross margins remained steady in FY23 at 60% and PHC said it has now "improved materially" in the first four months of FY24.

The AIM-listed group added that underlying losses improved 32% to $2.8m in FY23, with further improvement expected during FY24.

Chief executive Jeff Tweedy said: "Sales of Plant Health Care products experienced significant growth in 2023 in all regions, with the exception of the US market. Sales in the US were held back in 2023, throughout the agriculture inputs business, by distributors making major steps to reduce inventory.

"Outside the US, sales by PHC grew strongly in 2023 and have continued that trend in the first four months of 2024. PHC now markets PREtec on three continents and the launch of Teikko in Brazil on soybeans during the 2024/2025 growing season is an exceptional opportunity."

As of 1055 BST, Plant Health Care shares had surged 33.92% to 4.65p.

Reporting by Iain Gilbert at Sharecast.com