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Last close As at 26/05/2023
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Market capitalisation
EUR88m
Research: TMT
Claranova reported revenue growth of 12% for H123, with a return to underlying revenue growth in PlanetArt, the group’s largest business. Adjusted EBITDA was affected by the inflationary environment and increased investment in marketing. Management expects revenue growth of c 10% and adjusted EBITDA growth of 25–30% for FY23. We have revised our FY23 forecasts to reflect the lower end of EBITDA guidance and factor in higher finance costs for both years.
Claranova |
PlanetArt back on a growth path |
H123 results |
Software and comp services |
3 April 2023 |
Share price performance
Business description
Next events
Analyst
Claranova is a research client of Edison Investment Research Limited |
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Claranova reported revenue growth of 12% for H123, with a return to underlying revenue growth in PlanetArt, the group’s largest business. Adjusted EBITDA was affected by the inflationary environment and increased investment in marketing. Management expects revenue growth of c 10% and adjusted EBITDA growth of 25–30% for FY23. We have revised our FY23 forecasts to reflect the lower end of EBITDA guidance and factor in higher finance costs for both years.
Year end |
Revenue |
EBITDA* |
PBT** |
Diluted EPS** |
DPS |
P/E |
06/21 |
470.6 |
32.9 |
24.2 |
0.37 |
0 |
5.6 |
06/22 |
473.7 |
25.5 |
7.2 |
0.11 |
0 |
19.5 |
06/23e |
526.5 |
31.8 |
9.8 |
0.17 |
0 |
12.7 |
06/24e |
552.6 |
43.8 |
22.3 |
0.34 |
0 |
6.2 |
Note: *Pre-IFRS 16. **PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Inflation offsets underlying revenue growth in H123
For H123, Claranova reported 1% growth in revenue on an organic, constant currency basis, with a 1% contribution from acquisitions and a 10% exchange rate benefit resulting in reported growth of 12%. PlanetArt returned to underlying growth for the first time since Q321 as the business diversified its customer acquisition channels to counter the effects of Apple’s privacy policy. Cost inflation (labour, raw materials and transport) and increased marketing investment to reduce the effects of seasonality resulted in a 22% decline in adjusted EBITDA to €13m (5.5% margin).
Profitability expected to improve in H223
With the expectation that group EBITDA profitability will improve in H223 as a result of the increased marketing spend in H123 and a reduction in FreePrints customer acquisition costs (on a per customer basis), management expects FY23 revenue growth of c 10% and adjusted EBITDA growth of 25–30%. We have revised our EBITDA forecasts to reflect relatively flat profitability in PlanetArt, strong growth for Avanquest and a smaller loss for myDevices, resulting in a 7.6% cut to our FY23 forecast. We have increased our FY24 EBITDA forecasts reflecting the improving profitability trend expected from H223. Management believes it can reach its FY24 targets (revenue €700m, EBITDA margin 10%) through acquisitions it has already identified and is currently negotiating, subject to obtaining financing.
Valuation: Sustained profitable growth is key
Reflecting the different business models for each division, we continue to use a sum-of-the-parts approach to valuation. Using EV/sales multiples that reflect our views on divisional growth and profitability and are conservative compared to the peer group averages, we maintain our €7.4 per share valuation. In our view, consistent growth in revenues and margins towards Claranova’s FY24 targets will be fundamental to reducing the discount to peers. In the near term, sustained growth in PlanetArt (while balancing profitability) will be the key trigger.
Review of H123 results
Exhibit 1: H123 results highlights
€m |
H123 |
H122 |
y-o-y |
Revenues |
314.6 |
279.8 |
12.4% |
EBITDA |
19.5 |
24.5 |
-20.4% |
Lease payments (IFRS 16) |
(2.1) |
(2.2) |
|
Adjusted EBITDA |
17.4 |
22.3 |
-21.9% |
D&A |
(3.0) |
(3.4) |
|
Normalised EBIT |
16.5 |
21.1 |
-22.0% |
Share-based payments |
(0.5) |
(0.4) |
|
Exceptional items |
(2.2) |
0.3 |
|
Acquired amortisation |
(2.2) |
(1.6) |
|
Reported EBIT |
11.6 |
19.5 |
-40.5% |
Net finance cost |
(12.4) |
(10.5) |
|
Reported PBT |
(0.8) |
9.0 |
-109.4% |
Tax |
(3.6) |
(5.4) |
|
Profit after tax |
(4.5) |
3.6 |
-223.7% |
Minority interest (MI) |
0.6 |
(1.3) |
|
Net income after MI |
(3.9) |
2.3 |
-267.0% |
Net debt/(cash) |
64.8 |
(1.8) |
N/A |
Source: Claranova
Claranova reported H123 revenues in February. We discuss divisional performance in more detail below. Group adjusted EBITDA (pre-IFRS 16 accounting) of €17m declined 22% y-o-y reflecting inflationary effects (labour, transport and raw material costs) and higher marketing costs. Normalised operating profit also declined 22%. Exceptional costs of €2.2m included retention bonuses in PlanetArt (€1.8m) and restructuring charges (€0.2m) and compared to an exceptional credit in the prior period. Higher amortisation of acquired intangibles, slightly higher share-based payment costs and the exceptional charges resulted in a 41% decline in reported operating profit. Net finance costs of €12.4m included a €7m charge for the amortisation of the OCEANE convertible bonds and €3.6m in borrowing costs. The company incurred a tax charge as profits could not be offset by losses in other parts of the business.
The company closed the period with net debt of €64.8m, down from €71.2m at the end of FY22. This was made up of cash of €121.2m and debt totalling €186.0m. During H123, the company generated operating cash flow of €48m (which included the seasonal working capital inflow of €37m) and spent €25m on the acquisitions of pdfforge and Scanner App.
Divisional performance
The table below summarises H123 performance at a divisional level.
Exhibit 2: Divisional half-yearly performance
Revenue (€m) |
||||||
H123 |
H122 |
y-o-y |
y-o-y cc |
y-o-y organic |
y-o-y organic, cc |
|
PlanetArt |
255 |
227 |
12% |
1% |
12% |
1% |
Avanquest |
57 |
50 |
13% |
6% |
8% |
1% |
myDevices |
3 |
2 |
27% |
13% |
27% |
13% |
Total |
315 |
280 |
12% |
2% |
12% |
1% |
|
EBITDA (€m) |
EBITDA margin |
||||
H123 |
H122 |
H123 |
H122 |
|||
PlanetArt |
12.7 |
17.2 |
5.0% |
7.6% |
||
Avanquest |
6.3 |
6.7 |
11.1% |
13.5% |
||
myDevices |
(1.6) |
(1.6) |
Nm |
Nm |
||
Total |
17.4 |
22.3 |
5.5% |
8.0% |
||
Source: Claranova
PlanetArt customer acquisition costs moderating
PlanetArt returned to organic constant currency revenue growth for the first time since Q321. Through its efforts to diversify its customer acquisition channels since Apple’s app tracking transparency (ATT) policy was introduced in 2021, the business has now managed to halve the cost of customer acquisition from its peak and it is now back at pre-ATT levels. Customer channels now include TikTok, Instagram and YouTube, with marketing spend on Facebook now at less than a 10th of previous levels. The business was affected by inflation across most of the cost base – labour, raw materials, transport – which resulted in adjusted EBITDA declining 26% y-o-y to €12.7m. Management noted that it deliberately increased marketing investment in H123 to mitigate the effect of seasonality on the business (the web-based part of the business, which is US-centric, has a large spike in volume in Q2 of each fiscal year), focusing on FreePrints and the European side of the business, which tend to make up a greater proportion of business in H2 of each fiscal year. Management expects this to result in improved profitability in H223 compared to H222.
Avanquest integrating recent acquisitions
Avanquest saw organic constant currency revenue growth of 1% in H123, with acquisitions adding 5% and currency adding 7% to give reported revenue growth of 13%. Recurring revenue made up 62% of H123 revenue. Avanquest acquired two businesses in H123 to bolster its PDF business: pdfforge, which has a business-to-business focus, and Scanner App, which is mobile-focused. Both businesses are profitable. Management provided further detail on the revenue breakdown within Avanquest.
Exhibit 3: Avanquest product break-down
H123 revenue (€m) |
H123 EBITDA margin |
|
PDF (includes Soda pdf & recent acquisitions) |
17 |
28% |
Utilities (includes Adaware) |
21 |
24% |
Photo (includes InPixio) |
5 |
Loss-making |
Other |
7 |
N/A |
Non-core (third-party software) |
7 |
Loss-making |
Total |
57 |
11% |
Source: Claranova, Edison Investment Research
Since shifting its three main product lines (PDF, Utilities, Photo) to a SaaS business model, it believes it has reached critical mass in the first two, where it is generating EBITDA margins of 24–28%. The Photo business is currently much smaller, but management believes it is more differentiated in the market. The intention is to grow this product line organically via product development and management expects that it should ultimately be able to generate EBITDA margins similar to the other two product lines. Management noted that its third-party software distribution business is declining at c 10% per annum and is now loss-making. It intends to divest this business.
Divisional adjusted EBITDA declined 6% y-o-y, mainly due to the company increasing marketing investment in H123 to drive growth in H223 and FY24.
myDevices ARR up 36% y-o-y
myDevices grew H123 revenue 13% y-o-y on a constant currency basis and maintained an EBITDA loss of €1.6m. At the end of H123, annual recurring revenue (ARR) was €2.6m, up 36% y-o-y on a reported basis. The distribution network includes 190 partners (up from 143 a year ago) and deployments in key accounts (eg Sodexo, T-Mobile, Engie) accelerated during H123.
Outlook and changes to forecasts
The company expects to generate revenue growth of c 10% for FY23 and to grow adjusted EBITDA by 25–30% y-o-y. It expects adjusted EBITDA profitability in PlanetArt to be relatively flat year-on-year (which implies H223 adjusted EBITDA of c €4m compared to a loss of €0.9m in H222) and to grow in Avanquest. We have revised our forecasts to reflect the bottom end of the EBITDA guidance for FY23 and higher net finance costs in both years. We have revised up our EBITDA forecasts for FY24, as we expect the improving profitability trend for H223 to continue in FY24, particularly for Avanquest.
The company noted that the ORNANEs issued in June 2018 (€29.4m at the end of H123) are due to be repaid by 1 July 2023 and it expects to settle them using existing cash.
Management was previously targeting revenue of €700m and an EBITDA margin of 10% by FY24; it believes that this could still be achievable but would require several acquisitions, subject to the availability of funding. It is currently in discussions with several potential targets and noted that the pricing environment had improved as economic conditions have become tougher.
Exhibit 4: Changes to forecasts
€m |
FY23e |
FY23e |
FY24e |
FY24e |
||||
Old |
New |
Change |
y-o-y |
Old |
New |
Change |
y-o-y |
|
Revenues |
526.5 |
526.5 |
0.0% |
11.2% |
552.3 |
552.6 |
0.0% |
4.9% |
EBITDA |
38.0 |
36.0 |
(5.4%) |
27.4% |
43.2 |
48.0 |
11.1% |
33.5% |
EBITDA margin |
7.2% |
6.8% |
(0.4%) |
0.9% |
7.8% |
8.7% |
0.9% |
1.9% |
EBITDA - pre IFRS 16 |
34.4 |
31.8 |
(7.6%) |
24.5% |
39.5 |
43.8 |
11.0% |
38.0% |
EBITDA margin - pre IFRS 16 |
6.5% |
6.0% |
(0.5%) |
0.6% |
7.2% |
7.9% |
0.8% |
1.9% |
Normalised operating profit |
33.0 |
31.0 |
(6.2%) |
31.0% |
38.2 |
43.0 |
12.6% |
38.9% |
Normalised operating margin |
6.3% |
5.9% |
(0.4%) |
0.9% |
6.9% |
7.8% |
0.9% |
1.9% |
Reported operating profit |
28.5 |
23.8 |
(16.6%) |
32.6% |
33.5 |
38.3 |
14.3% |
61.2% |
Reported operating margin |
5.4% |
4.5% |
(0.9%) |
0.7% |
6.1% |
6.9% |
0.9% |
2.4% |
Normalised PBT |
15.5 |
9.8 |
(37.0%) |
36.6% |
20.7 |
22.3 |
7.5% |
128.0% |
Reported PBT |
11.0 |
2.6 |
(76.7%) |
(160.4%) |
16.0 |
17.6 |
9.7% |
584.6% |
Normalised net income |
11.9 |
8.2 |
(30.8%) |
64.3% |
15.8 |
16.8 |
6.0% |
104.0% |
Reported net income |
8.4 |
(1.2) |
(113.7%) |
(89.0%) |
12.2 |
13.2 |
7.8% |
N/A |
Normalised basic EPS (€) |
0.26 |
0.18 |
(30.8%) |
53.5% |
0.35 |
0.37 |
6.0% |
104.2% |
Normalised diluted EPS (€) |
0.24 |
0.17 |
(30.8%) |
54.4% |
0.32 |
0.34 |
6.0% |
104.2% |
Reported basic EPS (€) |
0.18 |
(0.03) |
(113.7%) |
(89.8%) |
0.27 |
0.29 |
7.8% |
N/A |
Net debt/(cash) |
87.9 |
90.7 |
3.3% |
27.4% |
76.2 |
84.0 |
10.3% |
(7.4%) |
Net debt/EBITDA (x) |
2.6 |
2.9 |
1.9 |
1.9 |
||||
Divisional revenues |
||||||||
PlanetArt |
400.6 |
400.6 |
0.0% |
9.4% |
412.3 |
412.3 |
0.0% |
2.9% |
Avanquest |
119.8 |
119.8 |
0.0% |
17.2% |
133.4 |
133.4 |
0.0% |
11.3% |
myDevices |
6.1 |
6.2 |
0.8% |
18.6% |
6.7 |
6.9 |
3.4% |
12.4% |
Total |
526.5 |
526.5 |
0.0% |
11.2% |
552.3 |
552.6 |
0.0% |
4.9% |
Divisional EBITDA |
||||||||
PlanetArt |
21.0 |
17.0 |
(19.0%) |
4.4% |
23.4 |
21.8 |
(6.8%) |
28.2% |
Avanquest |
15.0 |
16.8 |
12.0% |
44.3% |
17.5 |
22.5 |
28.6% |
33.9% |
myDevices |
(1.6) |
(2.1) |
25.5% |
(15.3%) |
(1.4) |
(0.5) |
(66.4%) |
(77.1%) |
Total EBITDA - pre IFRS 16 |
34.4 |
31.8 |
(7.6%) |
24.5% |
39.5 |
43.8 |
11.0% |
38.0% |
Source: Edison Investment Research
Exhibit 5: Financial summary
€'m |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023e |
2024e |
||
30-June |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
||||||||||
Revenue |
|
|
130.2 |
161.5 |
262.3 |
409.1 |
470.6 |
473.7 |
526.5 |
552.6 |
EBITDA |
|
|
(5.0) |
3.9 |
16.0 |
20.6 |
36.5 |
28.3 |
36.0 |
48.0 |
Company adjusted EBITDA |
|
|
(5.0) |
3.9 |
16.0 |
17.4 |
32.9 |
25.5 |
31.8 |
43.8 |
Normalised operating profit |
|
|
(5.8) |
3.4 |
15.5 |
15.8 |
31.0 |
23.7 |
31.0 |
43.0 |
Amortisation of acquired intangibles |
0.0 |
0.0 |
(1.5) |
(2.4) |
(3.1) |
(3.8) |
(4.5) |
(4.7) |
||
Exceptionals |
0.4 |
(2.4) |
(2.9) |
(5.6) |
(4.4) |
(0.7) |
(2.2) |
0.0 |
||
Share-based payments |
(4.8) |
(7.1) |
0.3 |
0.0 |
0.0 |
(1.2) |
(0.5) |
0.0 |
||
Reported operating profit |
(10.1) |
(6.1) |
11.4 |
7.8 |
23.5 |
18.0 |
23.8 |
38.3 |
||
Net Interest |
(0.9) |
(0.3) |
(3.5) |
(4.5) |
(6.8) |
(16.5) |
(21.2) |
(20.8) |
||
Joint ventures & associates (post tax) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Exceptionals |
0.0 |
0.0 |
(45.6) |
0.0 |
0.0 |
(5.7) |
0.0 |
0.0 |
||
Profit Before Tax (norm) |
|
|
(6.6) |
3.1 |
12.0 |
11.3 |
24.2 |
7.2 |
9.8 |
22.3 |
Profit Before Tax (reported) |
|
|
(11.0) |
(6.4) |
(37.7) |
3.3 |
16.7 |
(4.2) |
2.6 |
17.6 |
Reported tax |
(0.4) |
(1.8) |
(3.7) |
(2.1) |
(3.5) |
(5.7) |
(4.4) |
(4.0) |
||
Profit After Tax (norm) |
(7.0) |
2.4 |
9.2 |
8.7 |
18.6 |
5.5 |
7.5 |
17.1 |
||
Profit After Tax (reported) |
(11.4) |
(8.2) |
(41.4) |
1.2 |
13.2 |
(10.0) |
(1.9) |
13.5 |
||
Minority interests |
0.3 |
0.2 |
0.6 |
(0.7) |
(3.7) |
(0.5) |
0.7 |
(0.4) |
||
Discontinued operations |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net income (normalised) |
(6.7) |
2.6 |
9.8 |
8.0 |
14.9 |
5.0 |
8.2 |
16.8 |
||
Net income (reported) |
(11.0) |
(7.9) |
(40.8) |
0.5 |
9.5 |
(10.5) |
(1.2) |
13.2 |
||
Basic ave. number of shares outstanding (m) |
38 |
39 |
39 |
39 |
39 |
43 |
46 |
46 |
||
EPS - basic normalised (€) |
|
|
(0.18) |
0.07 |
0.25 |
0.20 |
0.38 |
0.12 |
0.18 |
0.37 |
EPS - diluted normalised (€) |
|
|
(0.18) |
0.06 |
0.25 |
0.20 |
0.37 |
0.11 |
0.17 |
0.34 |
EPS - basic reported (€) |
|
|
(0.29) |
(0.20) |
(1.04) |
0.01 |
0.24 |
(0.25) |
(0.03) |
0.29 |
Dividend (€) |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
||
Revenue growth (%) |
10.9 |
24.0 |
62.4 |
56.0 |
15.0 |
0.7 |
11.2 |
4.9 |
||
EBITDA Margin (%) |
-3.8 |
2.4 |
6.1 |
5.0 |
7.7 |
6.0 |
6.8 |
8.7 |
||
Company adjusted EBITDA margin (%) |
-3.8 |
2.4 |
6.1 |
4.3 |
7.0 |
5.4 |
6.0 |
7.9 |
||
Normalised Operating Margin |
-4.4 |
2.1 |
5.9 |
3.9 |
6.6 |
5.0 |
5.9 |
7.8 |
||
BALANCE SHEET |
||||||||||
Fixed Assets |
|
|
2.0 |
1.3 |
75.1 |
93.7 |
96.6 |
123.3 |
147.9 |
143.8 |
Intangible Assets |
0.9 |
0.5 |
69.9 |
70.5 |
77.5 |
96.6 |
120.6 |
115.9 |
||
Tangible Assets |
0.3 |
0.2 |
1.4 |
15.7 |
12.2 |
18.2 |
18.8 |
19.4 |
||
Investments & other |
0.7 |
0.6 |
3.8 |
7.5 |
6.9 |
8.5 |
8.5 |
8.5 |
||
Current Assets |
|
|
28.1 |
79.1 |
100.9 |
116.3 |
128.4 |
146.7 |
154.6 |
147.5 |
Stocks |
3.7 |
3.7 |
4.8 |
14.4 |
16.1 |
22.0 |
24.5 |
25.7 |
||
Debtors |
4.3 |
4.9 |
11.6 |
9.9 |
9.2 |
8.3 |
9.2 |
9.7 |
||
Cash & cash equivalents |
17.1 |
65.7 |
75.4 |
82.8 |
90.4 |
100.3 |
104.8 |
96.1 |
||
Other |
2.9 |
4.8 |
9.1 |
9.2 |
12.7 |
16.1 |
16.1 |
16.1 |
||
Current Liabilities |
|
|
(28.1) |
(37.2) |
(60.5) |
(74.6) |
(76.7) |
(106.0) |
(114.1) |
(116.6) |
Creditors |
(26.6) |
(35.4) |
(54.8) |
(64.3) |
(63.8) |
(78.1) |
(86.2) |
(88.7) |
||
Tax and social security |
(0.3) |
(1.7) |
(3.0) |
(1.2) |
(2.0) |
(1.9) |
(1.9) |
(1.9) |
||
Short term borrowings |
(1.1) |
(0.1) |
(2.7) |
(6.1) |
(7.7) |
(22.6) |
(22.6) |
(22.6) |
||
Other |
0.0 |
0.0 |
0.0 |
(3.0) |
(3.2) |
(3.4) |
(3.4) |
(3.4) |
||
Long Term Liabilities |
|
|
(0.7) |
(29.0) |
(52.0) |
(73.1) |
(66.1) |
(162.3) |
(186.3) |
(170.9) |
Long term borrowings |
0.0 |
(28.1) |
(49.1) |
(62.8) |
(57.4) |
(148.9) |
(172.9) |
(157.5) |
||
Other long term liabilities |
(0.7) |
(0.9) |
(2.9) |
(10.3) |
(8.7) |
(13.4) |
(13.4) |
(13.4) |
||
Net Assets |
|
|
1.3 |
14.2 |
63.6 |
62.3 |
82.2 |
1.7 |
2.0 |
3.9 |
Minority interests |
(0.1) |
(1.8) |
(11.0) |
(11.7) |
(16.2) |
(3.3) |
1.2 |
7.0 |
||
Shareholders' equity |
|
|
1.2 |
12.5 |
52.6 |
50.6 |
66.0 |
(1.6) |
3.2 |
10.9 |
CASH FLOW |
||||||||||
Op Cash Flow before WC and tax |
(5.0) |
3.9 |
16.0 |
20.6 |
36.5 |
28.3 |
36.0 |
48.0 |
||
Working capital |
6.8 |
7.9 |
(4.1) |
22.5 |
(3.1) |
3.2 |
4.7 |
0.8 |
||
Exceptional & other |
(2.2) |
(5.7) |
(5.2) |
(6.3) |
(8.9) |
(4.2) |
(2.2) |
0.0 |
||
Tax |
(0.0) |
(1.2) |
(3.8) |
(6.8) |
(5.1) |
(9.4) |
(4.4) |
(4.0) |
||
Net operating cash flow |
|
|
(0.4) |
5.0 |
3.0 |
30.0 |
19.4 |
17.9 |
34.1 |
44.8 |
Capex |
(0.2) |
(0.1) |
(2.5) |
(1.2) |
(3.8) |
(2.2) |
(2.0) |
(2.0) |
||
Acquisitions/disposals |
3.6 |
14.2 |
(13.3) |
(31.9) |
(3.8) |
(73.3) |
(26.8) |
(11.7) |
||
Net interest |
(0.0) |
(0.3) |
0.0 |
(0.5) |
(0.7) |
(1.7) |
(7.2) |
(6.8) |
||
Equity financing |
1.9 |
2.0 |
(1.4) |
0.0 |
2.4 |
13.3 |
0.0 |
0.0 |
||
Dividends |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Other |
0.1 |
(0.6) |
0.0 |
0.4 |
(2.6) |
1.9 |
(3.6) |
(3.6) |
||
Net Cash Flow |
5.0 |
20.1 |
(14.2) |
(3.2) |
11.0 |
(44.1) |
(5.5) |
20.7 |
||
Opening net debt/(cash) |
|
|
(9.8) |
(16.0) |
(37.5) |
(23.6) |
(13.9) |
(25.3) |
71.2 |
90.7 |
FX |
(0.6) |
0.4 |
0.3 |
(0.8) |
1.8 |
2.1 |
0.0 |
0.0 |
||
Other non-cash movements |
1.8 |
1.1 |
0.0 |
(5.7) |
(1.3) |
(54.5) |
(14.0) |
(14.0) |
||
Closing net debt/(cash) |
|
|
(16.0) |
(37.5) |
(23.6) |
(13.9) |
(25.3) |
71.2 |
90.7 |
84.0 |
Source: Claranova, Edison Investment Research
|
|
Research: Industrials
FY22 was an exceptional year for Amoéba in which it secured regulatory approval in the United States and a recommendation for approval in the European Union for the active substance used in its innovative biological fungicides. Now that these essential regulatory hurdles have been cleared, the company intends to construct a production plant capable initially of manufacturing sufficient active substance annually to treat 100,000 hectares of crops, 200,000 hectares when extended. Management plans to have this operational by early 2025 to support product roll-out, subject to Amoéba receiving regulatory approval for individual fungicides containing the active substance in 2024.
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