Eden Research(EDEN) , a sustainable biopesticide and plastic-free formulation technology company, released its half-year results, detailing revenue increasing to £1.14 million from £1.04 million in H1 2022, driven by product sales of £1.09 million, up from £1.01 million in the previous period.
It incurred an operating loss of £1.2 million, with an adjusted loss of £0.9 million (excluding a £5.0 million non-cash intangible asset impairment). Including the impairment, the total loss was £5.9 million, compared to H1 2022’s £1.0 million loss with no impairment.
Cash and cash equivalents at 31 August 2023 stood at £1.73m.
In the period, Eden expanded regulatory approvals in key territories, such as Mevalone® in New Zealand, and Poland, off the back of which Eden expects to receive approvals in the other central EU zone countries, and state approvals in the US for both Mevalone® and CedrozÔ.
The first commercial order was received for Ecovelex®, Eden's new seed treatment product, alongside submission made to the EU and UK authorities.
At the end of July, the company announced that it had completed a firm placing of £1.1m and conditional placing of at least £7.9m and a retail offer of £0.4 million. The company said it expects the fundraise to provide it with additional capital to commercialise further existing products and fund new areas of the business.
Eden said it is on track to meet 2023 market expectations for product sales revenue and EBITDA.
View from Vox
Eden has seen a period of rapid operational progress in the first half, with the stream of regulatory approvals unlocking its route to product sales and increasing its addressable market.
Eden Research has been making strides towards authorisation of its crop protector Ecovelex™, which applied for authorisation in the UK following a recent application in the EU. Shortly after, Eden Research received its first order for Ecovelex™ in the UK. Ecovelex™ is made to replace banned chemicals and utilises plant-derived chemistry, offering a sustainable solution for farmers to meet consumer and regulatory demands.
According to a 2022 report by the Research Institute of Organic Agriculture, in Europe, 17.1 million hectares were managed organically in 2020, up from a measly 1.4 million 30 years ago. Once regulatory approval for Ecovelex™ is received, Eden is in a strong position to capitalise on this market trend.
Among its other products on offer, Eden also has two commercialised eco-friendly crop protectors, its flagship biofungicide Mevalone, and Cedroz. These two products are well-positioned, as growers are having to meet pressure on improving crop yields while also being conscious that high levels of pesticide residue are now a focus for the consumer. Recently Eden has seen regular approvals for these crop-protects across the globe.
Eden neared its entrance into the Latin American market with Mevalone in June, when it appointed a new product distributor for the biofungicide for leaves in Columbia.
Amid consumer concerns about pesticide residues on produce, governments worldwide are revisiting maximum residue levels (MRLs) for pesticides and bolstering residue testing capabilities. This is part of a broader initiative to ensure public health and safety while promoting transparency in the agricultural sector.
As a result of the increased transparency over farming practices and enforcement of MRLs in recent years, consumers have become more aware of the use of crop production products and have continued to demand produce that is free from pesticide residues. Consequently, the EU has pledged to reduce the use of synthetic pesticides by 50% by 2030. Such EU regulations are likely to remain in place and become law in the UK as well.
Looking ahead, Eden is set for a strong second half, with the 2023 harvest season approaching alongside nearing a key pesticide application period for botryticides. Eden remains on track to meet market expectations for product sales.
Follow Eden Research for more News and Updates: