PureCircle predicts net profit increase of 73% for 2015
The company predicted sales in the second half of 2015 would be €77m (US$84m), giving an overall total of €116m (US$127m) for the full year – or an increase of 26% compared to 2014.
“In FY2015 there has been growth in sales across all geographic regions driven by accelerating market adoption of stevia, enabled by our range of proprietary ingredients and customisable ingredient combinations,” its preclose period update said.
“PureCircle continues to lead the growth of this market and our project pipeline gives us confidence that future sales growth at these rates is sustainable.”
According to Mintel data there were 627 new product launches using stevia in the first quarter of 2015 – a 28% increase compared with the same period last year.
PureCircle CEO, Magomet Malsagov, said: “The size and range of products now in market and of customers using stevia as a core part of their ingredient mix gives us confidence in the increased future demand for PureCircle stevia ingredients.
“Accordingly in FY2015 we kicked off expansion in our production capacity, which is due to come on stream in FY2017.”
But Malsagov warned of a somewhat volatile growth rate and ‘lumpy’ sales as stevia products were still in the roll-out phase in many of the most important markets.
Despite this he said he remained confident of the future prospects and long-term profitability.
The company has suffered stevia leaf supply problems in China but has been addressing the issue by investing in South America and Africa since 2008 in a bid to spread supply.
2014 was a good year for the firm with launches in Coca-Cola, Pepsi and Lipton iced tea beverages.
