GLG reports Q4 net loss, but revenues soar

31-Mar-2011 - Last updated on 01-Apr-2011 at 14:49 GMT

GLG Life Tech has reported a net loss of C$3.2m in Q4 on higher costs, but revenues soared 46 percent – and the company said its plans in China are likely to boost future growth.

The company, which grows stevia and supplies stevia extracts to food and beverage manufacturers, reported total revenues of C$58.9m for the full fiscal year, up 41 percent from the previous year, while revenue for the quarter was C$19.3m.

The company said it expects to report revenues of between C$160m and C$200m for the full year 2011, a significant increase on revenues of C$58.9m for 2010.

GLG Life Tech signed a five year supply agreement with Chinese company FXY in September last year, including a plan to supply sugar-stevia blends to the China Sugar Reserve that would reduce the calories normally provided by sugar in food and beverage products by 50 percent.

Chinese beverage launches

In addition, the company said it has launched its first six beverage products on March 31, as a result of its joint venture with China Agriculture Health Foods Company, announced in December 2010, to market products on the Chinese market under the brand Dr. Zhang’s All Natural and Zero Calorie.

GLG has also announced two new seed strains in 2010, one with 66 percent Reb A content, and the latest with 76 percent Reb A levels in the raw leaf.

“The naturally bred strains are a significant achievement for the GLG team as the average stevia leaf currently available on the global market contains a significantly lower percentage of rebaudioside A,” the company said. “Higher yields enable not only improved land and resource utilization, but also reduce GLG’s cost of production.”

The company added that both varieties are also larger in terms of plant mass, yielding about 22 percent more leaves per acre.

Distribution agreements

GLG said it signed distribution agreements in 2010 with Grupo Azucarero Mexico for Mexico, Central America and Columbia, Global Agri (Katra) for the Middle East and India, Sugar Australia for Australia and New Zealand, and Chempoint for the US and European markets.

“We estimate that through these distribution agreements and our supply agreement with Cargill we have approximately 83 percent coverage of the global sugar market for our stevia extract products,” GLG said.