Evolva

SW: EVE

CHF153.6m market cap

CHF0.2 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 Q3 trading statement was mixed: the announcement that Cargill and DSM are to form a new JV to produce fermentation-based stevia is not a threat to Evolva’s position, in our view. Revenue guidance was somewhat less bullish than at the H1 results stage. Nootkatone remains on track for US EPA approval in pest control in the near future. We expect Evolva to become more customer-focused as its products are commercialised, and its asset-light strategy to continue. FY18 results are due on 28 February.

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2016A 9.6 (34.0) (35.9) (6.8) N/A N/A
2017A 6.8 (37.6) (40.9) (7.0) N/A N/A
2018E 7.7 (24.1) (24.5) (2.7) N/A N/A
2019E 17.8 (18.6) (19.1) (2.1) N/A N/A
Last updated on 21/02/2019
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 21/02/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net cash (CHFm) 51.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.6) (13.7) (33.7)
Relative* (7.9) (18.3) (36.1)
52-week high/low CHF0.3/CHF0.2
*% relative to local index
Key management
Gerard Hoetmer Chairman
Oliver Walker CEO

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