Evolva

SW: EVE

CHF193.9m market cap

CHF0.25 last close

Evolva is a Swiss, high-tech fermentation company. It has a proprietary yeast technology platform, which it uses to create and manufacture high-value speciality molecules for nutritional and consumer products.

Investment summary

Evolva’s FY18 results demonstrate that the actions undertaken over the past 18 months are starting to come through into the numbers. Innovation has led to the expansion of ingredients systems with new variants and new markets, and the product pipeline continues to develop. The customer pipeline is progressing, and the maiden royalty payment from EverSweet was received, albeit small. The EPA registration of nootkatone for pest control applications was delayed by the US government shutdown, but is expected in the next couple of months. Our fair value reduces marginally to CHF0.56/share from CHF0.58/share.

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2017A 6.8 (37.6) (40.9) (7.0) N/A N/A
2018A 8.9 (23.4) (25.4) (3.0) N/A N/A
2019E 11.5 (14.5) (15.2) (1.6) N/A N/A
2020E 28.4 (5.6) (6.0) (0.6) N/A N/A
Last updated on 19/03/2019
Industry outlook

Food and health ingredients continue to be in the sweet spot as consumers demand healthier products with cleaner labels without compromising on taste or convenience. Evolva’s fermentation platform aims to deliver these benefits while reducing production costs.

Last updated on 19/03/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net cash (CHFm) 34.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 22.0 10.1 (15.3)
Relative* 18.5 (1.3) (21.6)
52-week high/low CHF0.3/CHF0.2
*% relative to local index
Key management
Gerard Hoetmer Chairman
Oliver Walker CEO

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