Research - Treatt feature image - 03072019 - JPG

Evolva

SW: EVE

CHF179.2m market cap

CHF0.22 last close

Evolva is a Swiss biotech company focused on the research, development and commercialisation of products based on nature. The company has leading businesses in Flavours and Fragrances, Health Ingredients and Health Protection.

Investment summary

Evolva’s order intake in FY20 was over CHF10m for the first time, with market share gains across business segments and continued strong momentum in Health Ingredients. Due to an order backlog of CHF3.6m, however, reported sales were CHF7.5m vs our forecast of CHF9.8m. There were delays in manufacturing owing to ongoing issues with Evolva’s contract manufacturers (CMOs) and, to compound this, demand in Flavours & Fragrances (F&F) continues to be subdued. FY21 reported EBITDA and operating cash flow are now expected to be in line with FY20 levels, with current guidance assuming there will be pandemic-related effects on the business for most of the year. Importantly, however, the guidance to break-even at the cash level by FY23 remains unchanged.

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2019A 11.6 (12.3) (15.6) (2.0) N/A N/A
2020A 7.5 (16.7) (23.4) (2.9) N/A N/A
2021E 14.3 (15.1) (17.0) (2.1) N/A N/A
2022E 27.4 (2.5) (4.5) (0.5) N/A N/A
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 05/03/2021
Register to receive research on Evolva as it is published
Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (CHFm) 10.8
Forecast gearing ratio (%) 9
Price performance
%
1m
3m
12m
Actual (10.3) 5.8 1.4
Relative* (9.0) 3.4 (3.0)
52-week high/low CHF0.3/CHF0.2
*% relative to local index
Key management
Beat In-Albon Chairman
Oliver Walker CEO

Content on Evolva