-- First quarter revenue grew 174% to $8.2 million from $3 million in first quarter of 2009.
-- Net loss after tax was $1.3 million compared to a net loss of $1.5 million in the year ago period.
-- First quarter EBITDA rose 1,199% to $3.5 million from $0.3 million in the 2009 first quarter.
GLG Life Tech Corporation, the vertically integrated leader in the agricultural and industrial development of stevia extracts, announces financial results for the first quarter ended March 31, 2010.
First quarter 2010 revenue increase 174% year over year
For the quarter ended March 31, 2010, revenue increased 174 percent, to $8.2 million from $3.0 million in the quarter ended March 31, 2009. The increase in revenues, which were derived entirely from stevia sales, was driven by more shipments of higher-value stevia extract against existing purchase orders when compared to the first quarter a year ago.
First Quarter 2010 EBITDA increase 1,199% year over year
EBITDA was $3.5 million, compared to EBITDA of $0.3 million for the first quarter of 2009.
Product Development and Production
New Product Line Announced in January 2010
New Sweet Success(SM) Line of Stevia Blends Launched: In January, the Company introduced its Sweet Success(SM) line of stevia extract blends. This addition to the Company's sweetener portfolio added several proprietary formulas that included BlendSure(TM) 6.0, BlendSure(TM) 7.0, BlendSure(TM) 7.5 and BlendSure(TM) 8.0. This innovative new product line by GLG's research and development team provides an attractive option for food and beverage manufacturers seeking to use stevia sweetening systems. Each of the blends offers flexibility as it relates to a cost of goods input while maintaining the qualities of taste, consistency and stability.
New, Fully Operational Rebpure(TM) RA97 Plant: GLG completed certification with SGS, an international market leader in certification services, to bring its new Rebpure(TM) RA97 refining facility into operation during the quarter. The facility added 1,000 MT of RA 97 processing capacity for a total of 1,500 MT or a 200 percent increase from the 2009 RA 97 processing capacity. This new facility enables GLG easy access to ship, air, and rail for product movement, increased capacity for secondary processing, and positions the Company to further meet current and anticipated demand.
Business and Market Development
GLG continues to make progress in increasing the commercial adoption of its high-grade stevia extracts in key global markets. Recent business development highlights include:
India: On May 12th, GLG signed a memorandum of understanding ("MOU") with Global AgriSystem Private Limited, a Katra Group company, regarding the introduction of GLG's stevia products in India. The agreement includes an initial phase of market development for GLG stevia extracts, as well as the agricultural development of growing regions for GLG patented stevia plant varieties. With a population of 1.2 billion and governmental and societal concerns over diet and intake, the Company believes that India's consumer base offers an untapped market for GLG stevia extracts and a significant opportunity for natural, zero calorie sweeteners.
Australia/South Pacific: On April 12th, GLG and leading sugar refiner Sugar Australia signed an MOU and are working to bring a range of stevia ingredients to food and beverage manufacturers in Australia, New Zealand, Singapore and the Pacific Islands. Sugar Australia is the leading sugar refiner in Australia, operating across multiple business channels including the supply of sugar as an ingredient into the food and beverage sector, retail sales, where its CSR consumer brand has the leading market share, the foodservice sector and exports. In response to consumer demand for healthier sweetening solutions, Sugar Australia launched a reduced calorie product called CSR Smart(R), which utilizes stevia extracts in a proprietary sugar blend to provide a 50 percent reduction in calories.
South America: The Company signed an agreement with Essentia Stevia for the distribution and marketing of GLG's high quality stevia extracts in 18 countries throughout Latin America including Argentina, Paraguay, Brazil, Venezuela, Colombia, and Mexico. Products will be marketed both industrially and in consumer facing brands including the launch of a tabletop brand by Essentia using GLG stevia.
Europe: During the quarter, the European Food Safety Authority (EFSA) issued a positive opinion on the safety of steviol glycosides. This scientific assessment is the first step towards EU-wide approval of stevia as an ingredient in food and beverages. The findings will next go to the European Commission for review. GLG and industry experts expect full approval in Europe to be granted by the end of 2010 which would open another significant market opportunity for the Company.
Weider Global Nutrition's ("WGN") Legal Proceedings Against the Company Dismissed
On March 30, 2010, the Company and WGN announced that the proceedings commenced by WGN against the Company in the Supreme Court of British Columbia will be dismissed by consent of the parties. The dismissal was the result of WGN's offer to drop its claim against the Company without any payment to WGN if the Company would drop its counterclaim against WGN and agree to wind up GLG and Weider's joint venture company Sweet Naturals Corp. The Company will now be marketing all of its products itself. WGN will carry on marketing activities in stevia related products independently.
The Company also announces today that it has changed the date of its Annual General Meeting from Thursday June 24th, 2010 to Friday June 25th, 2010.
About GLG Life Tech Corporation
GLG Life Tech Corporation is a global leader in the supply of high purity stevia extracts, an all natural, zero-calorie sweetener used in food and beverages. The Company's vertically integrated operations cover each step in the stevia supply chain including non-GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest, proprietary extraction and refining, marketing and distribution of finished product. GLG's advanced technology, extraction technique and premier, high quality product offerings including Rebpure(TM), Rebsweet(TM), Anysweet(TM) and the Company's newest line Sweet Success(SM), make it a leading producer of high purity, great tasting stevia extracts.
For further information, please visit www.glglifetech.com.