9 November 2018 – Evolva (SIX: EVE) today provides a quarterly business update, showing a strong underlying dynamic in building the business. The key items are:
- Product sales continued a solid growth trend, although sales have shown seasonal effects with summer months being significantly lower compared to the rest of the year.
- For the full year 2018, we expect product sales to grow at a high double digit percentage rate.
- The sales development pipeline continues to gain momentum, supporting further growth in 2019.
- The filing for registration of nootkatone for pest control applications remains on track at the US Environmental Protection Agency.
Other sources of revenue
- As Cargill has commercially launched EverSweet™, first royalty income from EverSweet™ product sales are expected, albeit modest, in the fourth quarter of 2018.
- On November 8, 2018, Cargill and Royal DSM announced a new venture which will combine both companies’ technologies for producing steviol glycoside products made through fermentation and will market its products under one brand name, EverSweet™.
- Evolva’s royalty rights on EverSweet™ and the existing agreement between Cargill and Evolva remain unchanged.
- Revenues from non-core R&D partner projects continue to decline in 2018, in line with our strategy to focus on value adding, commercially attractive products.
Costs and restructuring activities
- Combined efforts in R&D and manufacturing have resulted in a focused program to significantly lower manufacturing costs over the coming years.
- A full supply chain and network of service providers is being put in place to enable to ramp up volumes.
- The restructuring activities to transform Evolva, started in August 2017, will be completed by November of this year. As a result expenses in the coming years will be lower than earlier communicated levels.
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