StockMarketWire.com - Pesticides supplier Plant Health Care warned its annual revenue would be 'substantially' below market expectations following drought conditions in South Africa and a delayed shipment to Brazil.

Revenue for the year through December was now expected to be flat on-year, the company said.

Expectations for 2019, meanwhile, remained unchanged, it added.

'In South Africa, which has been a major contributor in prior years, prolonged drought has resulted in slower draw-down than expected on in-market inventory,' Plant Health Care said.

'As a result, we have decided to restrict sales until inventory has been worked off.'

Sales in Brazil had continued a positive trend in sugarcane, as expected. However, an additional shipment to Brazil may fall into 2019 due to delays in clearing customers.

Plant Health Care said the launch of a new Harpin product into corn with a major US partner 'has made a very encouraging start and delivered sales close to $1.5m'.

A planned launch with the partner into soy, however, had been delayed into 2019.

'While the shortfall against expectations is extremely disappointing, our expectations for sales in 2019 are unchanged,' chief executive Chris Richards said.

'We are very encouraged by progress in the US and Brazil.'

'The shortfall in 2018 does not affect the board's confidence in the company becoming cash positive no later than 2020, within our existing cash reserves.'




Story provided by StockMarketWire.com