GLG Life Tech Corp. (TSX:GLG), a vertically integrated leader in the agricultural and commercial development of high quality stevia, announces financial results for the nine months ended Sept. 30, 2013. The complete set of interim financial statements and management discussion and analysis are available on SEDAR and on the Company's website, glglifetech.com.
Revenue for the quarter grew to $5.2 million, a 48 percent improvement over the second quarter. Revenue for the nine months ended Sept. 30, 2013 was $11.9 million, 12 percent lower than the prior period, the decline resulting from the Company's change in business focus to international customers and recurring revenue from a focus on selling large amounts of stevia extract to other stevia providers in 2012. During the nine-month period, International sales have grown by 217 percent compared with the equivalent period in 2012.
The Company's quarterly net loss of $14.3 million and nine month net loss of $24.4 million are increased over $12.0 million in the prior period in 2012 (19 percent increase) and $22.5 million (9 percent increase) in the first nine months of 2012. These net losses include inventory impairment charges of $8.6 million and capacity charges of $1.5 million during the third quarter and inventory impairment charges of $8.6 million and capacity charges of $4.8 million for the nine month period. While the capacity charges negatively affect gross margins and current profitability, with the growth in the stevia market worldwide GLG anticipates that its ability to produce 1,500 tonnes of high purity stevia products will enhance the Company's attractiveness as a large scale producer as stevia becomes a mainstream product. The inventory impairment charge reflects a technical obsolescence provision.
The Company continues to make progress in developing its business with COFCO in China. There are three main healthy food and beverage formulation projects underway pursuant to the Company's previously announced strategic collaboration for the Chinese market with COFCO Nutrition and Health Research Institute Co Ltd., a 100 percent owned subsidiary of China National Cereals, Oils, and Foodstuff Corp. Projects include dairy products for the COFCO Mengniu Dairy Subsidiary and food & beverage products for COFCO's China Foods subsidiary. The objective of these formulation projects is to create reduced calorie healthier products for COFCO subsidiaries and introduce products into the China market. The two parties are also assessing some of GLG's existing stevia sweetened products for distribution in China including tabletop. Lastly, the two parties are in discussions on advancing the China Sugar Reserve Healthy Sugar project. Given the market coverage afforded by the COFCO collaboration, the Company sold its interest in its consumer products subsidiary during the third quarter.
Net Cash from operating activities during the quarter was $0.9 million, a $2.0 million improvement from cash used in operations of $1.1 million in the prior period. Cash increased by $1.5 million during the nine month period to $4.6 million. Working capital declined over the quarter, driven by loans reclassified as current ($9.6 million) and inventory impairment charges ($8.6 million). Working capital year-to-date has improved to a deficit of $19.2 million as at Sept. 30, 2013 compared to a working capital deficit of $33.9 million as at Dec. 31, 2012.