Eden Research revenue rises, losses set to widen
By Josh White
Date: Monday 13 Jan 2025
(Sharecast News) - Sustainable biopesticide and biocontrol technology specialist Eden Research reported significant revenue growth for the year ended 31 December on Monday, alongside a positive outlook for 2025.
The AIM-traded company said it expected full-year 2024 revenue to rise by 34% to £4.3m, driven by a 38% increase in product sales to around £3.6m.
However, operating losses were anticipated to widen slightly to £2.1m from £1.9m in 2023, reflecting elevated regulatory costs and continued investment in product development.
As of 31 December, Eden's cash reserves stood at £3.6m, compared to £7.4m at the close of 2023.
The firm said its flagship product Mevalone nearly doubled its sales in 2024 due to challenging weather conditions in Europe that heightened demand for fungicides, as well as new territory authorisations and label extensions.
Eden said it anticipated additional market share gains for Mevalone in the European Union as a major competing product was expected to be withdrawn.
Similarly, sales of Cedroz increased by over 80%, bolstered by entry into the Moroccan market, where regulatory changes had reduced the availability of alternative nematicides.
Ecovelex, Eden's bird repellent seed treatment for maize, benefited from temporary approval in Italy in late 2024, although sales were impacted by adverse weather conditions and market dynamics.
Broader EU approval for Ecovelex was expected in 2025, which could further enhance sales.
Eden said its insecticide product had meanwhile shown promising results in over 300 field trials conducted by potential commercial partners, generating substantial interest.
The company said it was advancing discussions to establish optimal distribution strategies, with updates expected in the near future.
Regulatory costs, which were elevated in 2024 due to renewals for active ingredients and product registration efforts, were anticipated to decrease in 2025, though additional studies could be required by regulatory authorities as part of ongoing processes.
For 2025, Eden forecast a 16% increase in revenue to £5m, driven by continued growth in Mevalone and Cedroz sales and further approvals for Ecovelex.
While the company had identified several regulatory and commercial milestones that could boost revenue, including EU-wide approval for Ecovelex and French approval for Esseva (Mevalone) for mildew treatment, the timing of that remained uncertain and had not been factored into current revenue guidance.
Eden emphasised that it did not anticipate the need to raise additional funds for working capital in the foreseeable future.
"As seems to be the case every year, November and particularly December were very busy months for everyone at Eden allowing us to demonstrate continued strong growth," said chief executive officer Sean Smith.
"The significant effort made by the team meant that we were able to manufacture and ship large volumes of Mevalone and Ecovelex to meet demand and market expectations, as well as signing several important new distribution agreements, including a distribution agreement for the rights to sell Cedroz in Jordan.
"We were also pleased to announce two important events in December - regulatory approval of Novellus+ in Mexico and the inclusion of Mevalone in the Organic Input List in Germany."
Smith said that in addition to "numerous other" key events announced in 2024, there were several material regulatory and commercial milestones expected in 2025 that had not been factored into current guidance, which could increase the company's forecast revenue for the financial year.
"I would like to thank all of the team at Eden for its hard work throughout the last year that has made all of this possible and look forward to updating shareholders throughout this next year with news of the progress we expect to make."
At 1320 GMT, shares in Eden Research were up 0.84% at 4.08p.
Reporting by Josh White for Sharecast.com.
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