Stevia extracts supplier GLG Life Tech (GLG) has announced that revenue for the quarter just closed was $3.4 million, 49% lower than the prior period. Revenue for the six months ended June 30, 2013 was $6.7 million, 13% lower than the prior period. Revenue reductions during the first half of 2013 were, it said, driven by the company's change in business focus to international customers and recurring revenue compared with a focus on selling large amounts of stevia extract to other stevia providers in 2012.
The company's quarterly net loss was $6.7 million compared with $6.0 million in the corresponding quarter in 2012. For the six month period, the net loss was $10.4 million compared with $9.8 million in the comparable period in 2012.
The company noted that it has focused in 2013 on increasing its international customer base and its international sales grew by 333% in the second quarter of 2013 compared with the second quarter of 2012. GLG said that it expects this change in business focus towards international customers will result in more predictable recurring revenue streams compared to large one-off or irregular purchases from other stevia providers.
GLG said that it has made progress in developing its business with COFCO in China. There are currently 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. Two projects are targeted at dairy products for the COFCO Mengniu Dairy Subsidiary and one is 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 partners are also assessing some of GLG's existing stevia sweetened products for distribution in China including tabletop. Lastly, the two parties are said to be in discussions on advancing the China Sugar Reserve Healthy Sugar project.
