Isagro sales fell 4% in 2016

Isagro sales were down by 4.1% to 149.7 Euro million in 2016, with an EBITDA of 16.2 Euro million and a net profit of 2.7Euro million.

The decrease in Revenues was due to lower sales in South America (in particular in Brazil) for around 6 Euro million and in North America (in particular in the United States) for around 3 Euro million, as well as to lower revenues from agreements with Third Parties for the exploitation of the Intellectual Property of Isagro for around 1 Euro million, with such items only partially offset by higher sales in Europe, East Med and Asia.

From a strategic point of view, 2016 was characterized by the continuation of the Isagro’s strategic guidelines implementation, through:

• the continuation of the investment programs for new registrations of existing active ingredients and for the development of new products/molecules. With reference to the latter point, it is worth to highlight the prosecution, in line with programs, of the co-development with FMC Corporation of Fluindapyr (new broad spectrum fungicides belonging to the “SDHi” class), for which the registration is expected in Europe in 2021, and the development of Dominus (new proprietary Biofumigant), the sales of which, already started in the USA, are estimated to increase significantly in the next years, once obtained the registration in California, expected by the first part of 2018;

• the development of the global commercial organization, with the hiring of new resources in the parent company Isagro S.p.A., the strengthening of the local companies Isagro Argentina, Isagro Brasil, Isagro Shanghai, Isagro USA and the establishment of Isagro Mexicana, Isagro Poland, Isagro Vietnam.

Outlook

2017 results will depend, at revenues level, upon the normalization of market/climatic conditions, mainly in the Americas, and the realization of revenues from new agreements with Third Parties for the exploitation of Intellectual Property, and will reflect, at cost/capex level, the full year impact of 2016 newly hired resources, the continuation of the strengthening of the global commercial organization and the continuation of the investment programs for new products/molecules.

Moreover, for the mid-term (2020-2021) Isagro confirms the target of around 200 Euro million revenues at a consolidated level, based on the implementation of its Strategic Guidelines:

1. discovery of new molecules by Isagro;
2. development of new molecules mostly through attribution of rights to “main developer(s)” while retaining rights for Isagro on selected segments/markets;
3. value extraction from our Intellectual Property also through Licensing;
4. growth in the Biosolutions business;
5. opportunistic development of off-patented products;
6. expansion of global commercial organization.