US: PureCircle swings to full-year losses
Stevia producer PureCircle made a full-year net loss of US$18.5m
Stevia producer PureCircle has swung into the red for its full-year, hurt by a move to scale back production.
For the year to the end of June, PureCircle reported net losses of US$18.5m compared to profits of $1.2m in the previous year. EBITDA dropped by 50.5% to $5.2m, the firm said today (19 September).
Net sales in the period also dropped, by 12.3% to $53.3m. The company said its results were impacted by "the tough but important decisions" taken to reduce production until inventories are "better aligned with current market demand".
"Having scaled production across 2009 and 2010 to demonstrate that high purity stevia could be produced in mass market volumes, it was right to slow production in FY 2011," the company said. "Our decisions will generate stronger cashflow and provide further headroom on our cash and banking facilities."
Nonetheless, PureCircle's chairman, Paul Swift, said that he still expects sales to benefit from "the growing retail consumption of stevia", and that he remains confident about the long-term future for the natural sweetener.
Click here to view the full earnings release.
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