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Evolva

SW: EVE

CHF194.8m market cap

CHF0.24 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 is starting FY21 with the launch of a new product, L-arabinose (previously known as EVE-X157/Z4). It is a natural sugar blocker and reducing sugar used in health ingredients and flavours and fragrances. It is fully renewable, sustainable and made by fermentation. The product is already FEMA GRAS-approved for use in food and beverages and has a wide range of applications. Evolva estimates the current market for the product at CHF250m. Commercial discussions with major customers are ongoing and Evolva expects to supply its first volumes in FY21. The launch of this new product shows the breadth of Evolva’s offering and the strength of its pipeline. As a reminder, our model assumes no contribution from L-arabinose.

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2018A 8.9 (23.4) (25.4) (3.0) N/A N/A
2019A 11.6 (12.3) (15.6) (2.0) N/A N/A
2020E 9.8 (15.8) (16.8) (2.1) N/A N/A
2021E 16.8 (10.7) (11.8) (1.4) 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 21/01/2021
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Sector
Consumer
Share price graph
Balance sheet
Forecast net cash (CHFm) 17.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 19.8 7.5 (20.7)
Relative* 13.1 (1.6) (20.9)
52-week high/low CHF0.3/CHF0.2
*% relative to local index
Key management
Beat In-Albon Chairman
Oliver Walker CEO
André Pennartz CFO

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