Financial Highlights : 

• Revenue: FY23 revenue was $11.2 million, compared to $11.8 million in 2022.
• Early 2024 Performance: Revenue in the first four months of 2024 reached approximately $4.3 million, a 72% increase from $2.5 million in the same period of 2023, driven by sales to US distributors.
• Gross Margin: The gross margin remained stable at 60.4% (2022: 60.9%) and improved in the first four months of 2024 due to higher sales of high-margin Harpinαβ and PREtec products.
• Adjusted LBITDA: Loss improved to $2.8 million (2022: $3.7 million), with further improvements expected in 2024.
• Working Capital: Utilized $5.1 million in 2023, compared to $3.1 million in 2022.
• Cash Position: Cash increased from $2.1 million on 31 December 2023 to $2.3 million on 3 May 2024, with a cash burn of $4.4 million in the same period of 2023.
• Operating Loss: Improved to $4.6 million from $9.2 million in 2022.

Operational Highlights:

Harpinαβ:

• US Market: Despite a significant destocking of all products by distributors in 2023, on-ground sales of PHC products remained strong and started 2024 robustly, with Employ® (Harpinαβ) sales through Wilbur-Ellis up over 75% from the same period in 2023. Distributor inventory is now rebalanced and aligned with on-ground sales.
• International Growth: Sales of Harpinαβ outside the US grew by 36%, with Brazil and Mexico seeing increases of 45% and 55%, respectively, continuing this trend into 2024.
• Growth Rate: The compounded annual growth rate of Harpinαβ between 2020 and 2023 is 20%, expected to continue in 2024.

PREtec:

• Sales Increase: Sales of PREtec peptides increased by 153% to $2.0 million in 2023 (2022: $0.8 million), making up 18% of total sales, driven by new product registrations and existing customer growth.
• Product Launches: ObronaTM was launched in the US for use on various crops. PREtec proprietary products are now sold on three continents.
• Brazil Market: The peptide nematicide PHC68949 was approved for commercial sale in Brazil under the brand name Teikko®, with around 10 distributors interested in selling it. Strong field trial results and high grower ROI are driving distributor interest.
• Agrii UK Agreement: Signed an agreement with Agrii UK to support commercial sales combining PREtec technology and Agrii’s novel foliar micronutrient, aimed at improving crop quality and yield as part of an integrated, environmentally responsible management program.
• Biochemical Fungicide Approval: PHC279 received federal approval in Brazil for controlling diseases in sugar cane and coffee.

Outlook:

• Revenue Growth: New registrations and distribution agreements in 2023 and 2024 indicate significant revenue growth in 2024, aligning with market forecasts.
• Business Model Relevance: The need for food security is increasing, making the company’s business model more relevant as it provides technological solutions for sustainable agriculture, better crop yields, and reduced environmental impact to meet global sustainability targets.
• H2 2024 Expectations:
  • Launch of Teikko and Moshy in Brazil, expected to drive significant revenues.
  • Expansion of Innocul8 sales in the UK, leading to increased revenue in the EMEAA region.
  • Entry into India and China, expected to drive substantial sales over time.
• Financial Flexibility: With increased sales in early 2024, the company is exploring potential non-dilutive short-term financing options to maintain sufficient working capital and financial flexibility through its typical order cycle.

Annual Report

The Annual Report is available on the company’s website  Annual Report Plant Healthcare , with hard copies to be mailed to shareholders in due course.