Evolva Holding SA (SIX:EVE) is transforming itself into a product-based company, and the new CEO is evaluating the organisational structure and operational strategy. R&D-based revenue is likely to fall due to the transformation. EverSweet remains on track for 2018 launch, nootkatone is on track for US regulatory approval in pest control in H218, and resveratrol revenues were up strongly. Our fair value falls to CHF0.69 as we cut our sales forecasts, but we continue to believe the current share price offers a good entry point.
H117 results
Total revenues of CHF3.6m were below our forecast of CHF6.0m and consensus of CHF5.8m, with both product and R&D revenues lower than expected, although the net loss of CHF20.3m was broadly in line with consensus of CHF18.6m. Given the guidance for FY17 product revenues to at least triple vs the CHF1.1m reported in 2016, we have cut our sales assumptions for FY17 from CHF15.3m to CHF8.4m, and we also cut sales forecasts for FY18 and FY19.
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