Evolva - A new era

Evolva’s FY21 revenues of CHF9.9m were below our forecast of CHF14.1m as the pandemic continued to stifle momentum during H2. Flavours and Fragrances grew revenues by 48% as consumer demand for natural ingredients remained strong. The Health Ingredients segment grew revenues by 46%, though the royalty stream from Eversweet was below company expectations. Gross contribution in Q4 was at break-even, as per guidance. The outlook is for revenue growth of 50% at constant currency in FY22, which is below our previous forecast of CHF27.5m. We cut our forecasts to reflect new guidance and reassess our long-term estimates.