Devgen nv Business update
(Thomson Reuters ONE) - Regulated informationZwijnaarde, Belgium - November 20, 2009 - Devgen nv (EuronextBrussels; DEVG) issues today a business and financial update for thethird quarter 2009.Operational highlights Q3 2009Regulatory approval and market launch of Devgen's nematicide inTurkeyDevgen received regulatory approval for its nematicide productDevguard® in Turkey for use in four of the most important vegetablecrops under protective cover: tomato, cucumbers, eggplants andpeppers. Dogal A.S., Devgen's Turkish partner, sells this producttoday to growers of these high value crops. Sales are supported by anationwide advertising and marketing campaign. Field trials haveindicated that the use of Devguard® integrates well with establishedgrower practices. Devguard® has been approved with a shortpre-harvest interval. This is key differentiator versus otherproducts in the market.Further progress in IndonesiaDevgen has strengthened its collaboration with PT (Persero) SangHyang Seri through the creation of a Hybrid Rice Strategic BusinessUnit for hybrid rice seed production. Indonesia is South East Asia'slargest rice growing country with approximately 12 million ha underrice cultivation. Furthermore Devgen and PT (Persero) Sang Hyang Seriobtained regulatory approval for the distribution of two hybrid ricevarieties DG 1 SHS and DG 2 SHS in Indonesia allowing to prepare formarket launch in the near future.Devgen ready to launch its proprietary hybrid rice in the PhilippinesDevgen further established its organization in the Philippines. Nextto the further strengthening of its research stations in Mindanao,production was started in the southern part of the country. Demotrials were organized during the past season and first production wascompleted. Devgen anticipates launching its first hybrid rice seedfor the Philippine market through its distribution partner LeadsAgri. This tropical hybrid rice variety was specifically bred for thePhilippine market, taking into account local agricultural practicesand requirements.Continued strong growth in IndiaWith strong sunflower sales during Q3 and lower impact of salesreturns total revenues were up 55% compared to the same quarter lastyear. Devgen confirms its ambition to be a top 4 player in hybridrice, to regain the number one position in premium hybrid sorghum andto be the number 3 hybrid sunflower seed provider in India by the endof 2009. Total sales of hybrid seeds for the year are expected toamount to EUR 9 million.Devgen strengthens cash positionOn October 1st Devgen raised EUR 14.7 million through a privateplacement with the issuance of 1,753,339 new shares (+9.8%). Theproceeds of the offering will be used to grow Devgen's seeds and croptechnology business in line with its business plan, in particular toaccelerate the growth of its premium hybrid rice seed business andthe introduction of its biotech traits in rice on the Indiansubcontinent and in South-East Asia. Devgen foresees to end the yearwith a cash and cash equivalents totaling EUR 42 million.Financial highlights Q3 2009Key financials (non audited) September 2009+-------------------------------------------------------------------+| ? '000 | Q3 09 | Q3 08 | 30.09.09 | 30.09.08 ||----------------------------+-------+--------+----------+----------|| Revenue from continued | 5,886 | 2,453 | 14,504 | 8,299 || operations | | | | ||----------------------------+-------+--------+----------+----------|| EBITDA from continued | 877 | -3,006 | -2,738 | -9,799 || operations | | | | ||----------------------------+-------+--------+----------+----------|| Net profit/loss from | 299 | -3,494 | -4,685 | -10,941 || continued operations | | | | ||----------------------------+-------+--------+----------+----------|| Net loss from discontinued | -38 | -1,817 | -200 | -5,939 || operations | | | | ||----------------------------+-------+--------+----------+----------|| Total net profit/loss for | 262 | -5,312 | -4,884 | -16,881 || the period | | | | ||----------------------------+-------+--------+----------+----------|| | | | 30.09.09 | 31.12.08 ||----------------------------+-------+--------+----------+----------|| Cash and cash equivalents | | | 33,266 | 24,218 |+-------------------------------------------------------------------+Total revenue for Q3 2009 amounts to EUR 5,886 ('000) as compared toEUR 2,453 ('000) for Q3 2008. The 140% increase in revenues is due tohigher sales of hybrid seeds in India as indicated above, first salesof nematicides in Turkey (launch campaign) but also to higherresearch income. Income from sales of goods amounts to EUR 2,771('000) as compared to EUR 1,745 ('000) in the same quarter of lastyear. Income from R&D cooperation increased to EUR 3,115 ('000) fromEUR 708 ('000) over the same quarter last year. Revenue recognitionwith respect to the new research and technology agreements areresponsible for this significant increase. On a YTD-basis revenuesincreased to EUR 14,504 ('000) from EUR 8,299 ('000) over the first 3quarters last year with R&D income amounting to EUR 6,055 ('000) andsales of goods amounting to EUR 8,449 '(000) representing an increaseof respectively 146% and 45%.EBITDA for the third quarter 2009 amounts to EUR 877 ('000) ascompared to EUR -3,006 ('000) for Q3 2008. EBITDA has considerablyimproved due to higher revenues, better gross margin and lower R&Dexpenditure. EBITDA YTD amounts to EUR -2,738 ('000) compared to EUR-9, 799 ('000) for the same period last year.Cash and cash equivalents at the end Q3 2009 amount to EUR 33,266('000) as compared to EUR 24,218 ('000) at the end of 2008. Thisamount excludes the cash raised on October 1, 2009.Outlook 2009- Overall revenue expectation for 2009 is now set at EUR 18 million,with product sales remaining in line with previous guidance given setat EUR 9 million and R&D revenue for a total of EUR 9 million.- R&D expenditure (excl. depreciation) for 2009 is expected toamount to EUR 8 million.- Cash burn for the year, including planned investments and loanrepayments, is set at approximately EUR 18 million. Taking in accountcash inflows with respect to new research and technology agreementsand the capital increase cash at year end is expected to amount toEUR 42 million.About Devgen nvDevgen's mission is to enable farmers to sustainably grow more foodon less land, with less water, agrochemicals and labour.Devgen uses advanced biotechnology and molecular breeding technologyto make high yielding seeds and crop protection solutions with asuperior environmental profile.Devgen brings this technology to the market in the world's major foodand feed crops through two complementary strategies:- Licensing Devgen technology for use in corn, cotton and soy andselected other crops in exchange for R&D funding, and milestone androyalty payments.- Producing and selling its premium hybrid seeds in major fieldcrops such as rice, sunflower, sorghum, and pearl millet, in theIndian subcontinent and South-East Asia.In its Crop Protection unit, Devgen developed and has taken to marketa novel nematicide, an agro-chemical product that protects crops fromdamage by parasitic nematodes.Incorporated in 1997, Devgen has offices in Ghent (Belgium),Singapore, Hyderabad (India) and Delaware (US) and employs more than200 people.For more information please contact:Thierry Bogaert, Wim Goemaere, CFOCEOTel. +32 9 324 24 24 Tel. +32 9 324 24 24Thierry.Bogaert(at)devgen.com Wim.Goemaere(at)devgen.comOr visit: www.devgen.comThis press release may contain forward-looking statements containingthe words "anticipates", "expects" , "intends", "plans", "estimates","may" and "continues" as well as similar expressions. Such forwardlooking statements may involve known and unknown risks, uncertaintiesand other factors which might cause the actual results, performanceor achievements of Devgen to be materially different from any futureresults or achievements expressed or implied by such forward-lookingstatements. Factors that could cause or contribute to suchdifferences include, among others: agricultural risks anddifficulties, including weather factors, diseases and pests, thecosts and requirements of regulatory compliance and the speed withwhich approvals are received; public acceptance of biotechnologyproducts; political, economic and social developments in countrieswhere Devgen operates and other risks and factors detailed in thecompany's most recent annual report.These forward looking statements speak only as of the date ofpublication of this document. Devgen disclaims any obligation toupdate such forward looking statements in this document to reflectany change in its expectations, conditions or circumstances on whichsuch statement is based, unless required by law or regulation. Thisdocument does not constitute, or form part of, any offer orinvitation to sell or issue, or any solicitation of any offer, topurchase or subscribe for any securities issued by Devgen NV.http://hugin.info/135721/R/1356257/329487.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 20.11.2009 - 06:45 Uhr
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