January 5, 2017 / 7:27 AM / 10 months ago

BRIEF-PureCircle sees H1 group sales down 14 pct

Jan 5 (Reuters) - Purecircle Ltd :

* Trading update

* Today provides a trading update for six-month period ended 31 december 2016 (h1 fy17).

* Group sales in h1 fy17 are expected to be $47m, a decrease of 14% against h1 fy16 (us$54m)

* Decrease is a direct consequence of previously announced detainment of shipments by us customs border protection partially offset by strong growth in rest of world.

* Group expects gross margin, ebitda and net profit to be lower compared to h1 fy16 due to aforementioned us cbp detainment order

* Cost of this weighed on our margins in h1, though we expect margins to be restored to previous levels once issue has been resolved.

* Group gross profit for first half is expected to be us$18m, a decline of 19% against h1 fy16 (us$22m)

* Ebitda is expected to be us$8m, a decrease of $5m, reflecting lower sales and adverse margins.

* Group’s net loss is expected to be us$2m (1h fy16 profit: us$5m).

* Group ended h1 fy17 with net debt of us$80m (h1 fy16 us$46m)

* Impoundment of our shipments and inclusion of purecircle’s name on withhold release order (“wro”) has inevitably had a significant negative impact on our market in us

* We anticipate a further communication to market in near term. Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +91 80 6749 1136)

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