Evolva (SIX: EVE) today provides a financial and project update.
According to the provisional, unaudited financials, revenues in 2014 slightly exceeded CHF 10 million (in line with guidance), whilst the year-end cash position of CHF 60.7 million was higher than the CHF 50 million projected in November 2014. This positive deviation is primarily due to transactions related to the acquisition of Allylix in December: the USD 4 million investment by Cargill and the sale of 6 million shares to cover Allylix liabilities that was executed earlier than expected (in December 2014). A major part of the proceeds from the share sale was used in January 2015 to settle the remaining Allylix liabilities. After adjusting for the above two factors, cash at year-end was about CHF 52.5 million compared with our guidance of CHF 50 million. Cash outflow from operations in 2014 developed in line with the November guidance (“about CHF 20 million”).
In 2015, we expect revenues to increase on 2014. Product related revenues will contribute for the first time, however a significant majority of revenues will still derive from partnerships. Due to investment in manufacturing and commercialisation of key products, in particular stevia, resveratrol and nootkatone, our operating cash outflow will increase in 2015.
We expect the recent appreciation of the Swiss Franc to be modestly positive for Evolva in the short term, given that we have significant costs in other currencies. The beneficial cost impact outweighs some negative effect on revenues.
On stevia, a decision on exercising our option to participate up to 45% in Cargill’s fermented stevia business is expected in the first half of 2015. We expect that stevia will be launched in 2016.
The portfolio review initiated after the Allylix acquisition is ongoing and is expected to conclude with respect to our major products in March 2015.
Evolva will publish its audited financial statements for 2014, as well as a more detailed financial outlook for 2015, on Tuesday 31 March 2015. The Annual General Meeting will take place on Tuesday 12 May 2015 in the morning in Basel, Switzerland.
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