6 May 2025

Eden Research

("Eden" or "the Company")

Preliminary results for the year ended 31 December 2024

Eden Research (AIM: EDEN), a leader in sustainable biopesticide and biocontrol technology, announces its preliminary results for the year ended 31 December 2024.

Commercial and operational highlights

·    Authorisation for Mevalone® received in the key US state of California in January 2024.

·    Mevalone® authorised for use in new crops and fungal pathogens in Spain in June 2024.

·    Authorisation for Mevalone® received in Germany and Czechia (post period-end).

·    More than 140 insecticide field trials were run in 2024 by Eden and potential distribution partners, following significant interest in the evaluation of Eden's development insecticide.

·    Strengthening of the Commercial Team with the appointment of a skilled team filling roles such as Commercial Lead, Product Management and Marketing Lead and Supply Chain Lead.

·    Eden named ESG Company of the Year at the prestigious 2024 Small Cap Network Awards in recognition of its commitment to environmental, social and governance matters and contribution to the green economy.

Financial highlights

·      Revenue for the year grew to £4.3 million (2023: £3.2 million), reflecting a growth rate of 34% year-over-year.

·      Operating loss for the year was £2.2 million (2023: £1.9 million)

·      Cash position at the year-end was £3.7 million (2023: £7.4 million)

The Group's full Financial Statements are available at: www.edenresearch.com.

Lykele van der Broek, Chairman of Eden Research plc, commented:

"Eden has seen another strong year of growth with overall revenue up 34% and product sales also up by a similar amount.

In addition to this, several key milestones were reached in 2024 which will all help to drive revenue in the short and medium term and get Eden to the point of cashflow positivity, which will be a significant milestone for the business.

I remain very optimistic about Eden's prospects and believe that the Company is making excellent progress toward achieving its goal of becoming a leader in the biological crop protection products and solutions industry."

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information, contact:

Notes to Editors:

Eden Research is the only UK-listed company focused on biopesticides for sustainable agriculture. It develops and supplies innovative biopesticide products and natural microencapsulation technologies to the global crop protection, animal health and consumer products industries.

Eden's products are formulated with active ingredients, based on natural plant defence molecules. To date, the Company's products have been primarily used on high-value fruits and vegetables, improving crop yields and marketability, with equal or better performance when compared with conventional pesticides. Eden has three products currently on the market.

Based on plant-derived active ingredients, Mevalone^® is a foliar biofungicide which initially targets a key disease affecting grapes and other high-value fruit and vegetable crops.  It is a useful tool in crop defence programmes and is aligned with the requirements of integrated pest management programmes, and it is allowed for use in organic agriculture across the EU and in select other countries. It is approved for sale in a growing number of key countries whilst Eden and its partners pursue regulatory clearance in new territories thereby growing Eden's addressable market globally.

Novellus®+ is an evolution of Mevalone, allowing improved rates in the field, high levels of efficacy and a broader list of plant and disease targets.  This product was formulated to address the specific market demands of certain territories and will be launched in these territories based upon local conditions.

Cedroz™ is a bionematicide that targets free living nematodes which are parasitic worms that affect a wide range of high-value fruit and vegetable crops globally.  Cedroz is registered for sale on two continents and Eden's commercial collaborator, Eastman Chemical, is pursuing registration and commercialisation of this important new product in numerous countries globally.

Eden's seed treatment product, Ecovelex™, was developed to safely tackle crop destruction caused by birds - a major cause of losses in maize and other crops. Ecovelex works by creating an unpleasant taste or odour that repels birds, leaving the seeds safely intact and the birds unaffected and free to find alternative food sources. The product is based on Eden's plant-derived chemistry, registered in the EU, US and elsewhere, and formulated using Eden's Sustaine^® microencapsulation system.

Eden's Sustaine^® encapsulation technology is used to harness the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) but can also be used with both natural and synthetic compounds to enhance their performance and ease of use. Sustaine microcapsules are naturally derived, plastic-free, biodegradable micro-spheres derived from yeast. It is one of the only viable, proven and immediately registerable solutions to the microplastics problem in formulations requiring encapsulation.

Eden was admitted to trading on AIM on 11 May 2012 and trades under the symbol EDEN. It was awarded the London Stock Exchange Green Economy Mark in January 2021, which recognises London-listed companies that derive over 50% of their total annual revenue from products and services that contribute to the global green economy. Eden derives 100% of its total annual revenues from sustainable products and services.

For more information about Eden, please visit: www.edenresearch.com. You can also follow Eden's latest developments via its social media channels: X (Twitter) and LinkedIn.

Chairman's Statement

I am pleased to report that Eden has seen another strong year of growth with overall revenue up 34% and product sales also up by a similar amount.

In addition to this, several key milestones were reached in 2024 which will help to drive revenue in the short and medium term and get Eden to the point of cashflow positivity, which will be a significant milestone for the business.

Authorisation for Mevalone® was received in the key US state of California at the beginning of 2024. Once certain label restrictions have been removed, which the Company is working hard to achieve, the opportunity in the US should prove to be a considerable one.

Mevalone was also authorised for use in new crops and fungal pathogens in Spain which has increased the addressable market and we are already seeing the benefit of this in 2025.

More than 140 insecticide field trials were run in 2024 by Eden and a number of potential distribution partners, following significant interest in the evaluation of Eden's developmental insecticide and the team at Eden is now negotiating to conclude commercial arrangements.

An emergency use authorisation was received for Ecovelex in Italy for the second year running which led to meaningful sales towards the end of 2024. The Company expects full authorisation by the Rapporteur Member State in mid-2025 which, once granted, will lead to approvals from other concerned Member States being sought which will unlock the full potential throughout Europe.

At the end of 2024, regulatory approval was received for Novellus+, a new, enhanced version of Eden's flagship fungicide, Mevalone, in Mexico. This is an exciting development as Novellus+ represents an evolution of Mevalone, allowing improved rates in the field, high levels of efficacy and a broader list of targets, all contributing to a larger addressable market in select territories.

As I know from my previous roles, such as Chief Operating Officer of Bayer CropScience, the crop protection industry is heavily regulated, methodical, slow-paced and, as such, often frustrating. However, the evolution of biopesticides is not only a very positive development for the industry, the environment and consumers, but also an increasingly valuable one.

The industry has seen a significant increase in investment in this area through both internal development as well as M&A activity. It's clear that there is a consensus that biopesticides, and other sustainable solutions, are the future of crop protection.

As such, I remain very optimistic about Eden's prospects and believe that the Company is making excellent progress toward achieving its goal of becoming a leader in the biological crop protection products and solutions industry.

I would like to thank Eden's shareholders for their ongoing and much appreciated support.

Lykele van der Broek

Non-Executive Chairman

2 May 2025

Chief Executive Officer's Review for the year ended 31 December 2024

Section one: Introduction

Over the past ten years, I've had the privilege of steering the Company's growth from a business with no registered products to a well-established, independent biopesticide leader, with a strong track record in developing plant-derived crop protection solutions for sustainable agriculture. Today, Eden, unique among its peers, boasts a portfolio of three products, with an additional three in the pipeline, regulatory clearance in 24 markets, and over 101 crop use approvals. 

The past year encapsulates the Company's evolution to date in more ways than one. Not only have we delivered another year of significant revenue growth, but we have also gained entry into some of the world's most strictly regulated markets in California and Germany, and made significant development advancements to grow our product offering. Advances have also been made in our portfolio as we edge closer towards obtaining regulatory clearance for Ecovelex and prepare for the next steps in the commercialisation of our first bioinsecticide.

Macroeconomic context

Demand for our biopesticides continues to rise as the agriculture industry grapples with an increased regulatory clampdown on conventional pesticides with known detrimental effects on the environment and human health. We have seen a clear trend amongst farmers looking to adopt top-tier technology to efficiently maximise their yields and meet or exceed increasing regulatory restrictions, paving the way for innovative alternatives such as Eden's biopesticides. While these factors add wind to the sails for Eden, more urgent action is needed to create a faster regulatory pathway for biopesticides, helping to address the performance and environmental challenges faced by farmers worldwide.

Across Europe, currently our largest market, product inventories eased somewhat in the 2024 calendar year, following a year of pesticide de-stocking. Purchasing patterns also shifted to a more real-time ordering approach, moving away from the pre-buying trends which became commonplace in the face of supply chain issues following the pandemic. This shift has contributed to greater visibility of the supply chain and distribution channels whilst providing some opportunities for quick sales where regulatory clearances allow. 

In the US, growers have faced declining commodity prices, which have depressed farm incomes and led to a 10% decline in pesticide expenditures in 2024 compared to the previous year. With no further indication that prices will continue to fall sharply, these appear to have been short-term challenges, primarily affecting the corn and grain market, which Eden has yet to enter in North America. Looking ahead, ongoing antitrust litigation may disrupt the established crop input distribution chain that has long relied on loyalty schemes, providing new opportunities for alternative suppliers to enter the market. As a relatively new supplier to the market in the US, we are well-placed to take advantage of this shift.

Section two: Delivering on our strategy

Operating in an industry such as ours requires participants to navigate a plethora of regulatory hurdles, more often than not outside of the Company's control. It presents us with a double-edged sword. On one hand, we are at the mercy of a regulator's timeline. On the other hand, the value of our growth story and investment case depends on the growth of our certification count. These regulatory wins define the pace with which we can move and the size of the markets that we can address.

Against this backdrop, our Company strategy remains consistent, built on four key objectives:

a)    Business line diversification

-     Pursuit of opportunities in seed treatments

-     Development of insecticides

-     Expand crops and diseases treated, increasing the addressable market for existing products

-     Geographic diversification

b)    Research, development, and operations

-     Supply chain optimisation

-     Expansion of in-house screening and field trials capability

-     Accelerate commercialisation of Sustaine for conventional actives

-     Increase self-reliance in R&D

-     Reduce time to market

c)    Commercial growth

-     Regulatory clearance in new countries, crops, and diseases

-     Proactively pursue Sustaine business development

-     Partnerships for Mevalone and Cedroz in new territories

-     Pursue collaboration with majors and select national partners

-     Route to market optimisation

d)    Strengthening and growing the team

-     Added capabilities in R&D, including microbiology, plant biology, agronomy, and analytical chemistry

-     Robust approach to data quality

-     Expand commercial team

-     Addition of in-house regulatory expertise - accelerating time to market and reducing regulatory costs

Taking Ecovelex to market

Since Ecovelex's launch under emergency authorisation in Italy in 2023, we have seen strong demand for the product from Italian farmers as they contend with the pressures arising from the removal of conventional products from the market. The product has so far meaningfully contributed to our revenue and remains a core part of our sales growth strategy. This is despite recording a smaller-than-expected product order in November 2024 compared to the previous year's order (due to adverse weather conditions) which had a significant impact on the number of hectares planted, a static addressable market, and stock carried over from 2023.

In November 2024, we were pleased to have been granted an extension to our licence under EU regulation 1107/2009. This extension permits us to continue selling our sustainable seed treatment to Italian farmers under restricted conditions.

Full, EU-wide authorisation for Ecovelex is currently expected this year, subject to the pace of regulatory review and clearance. The dossier and application have been submitted to the Austrian authorities, who are acting as the interzonal rapporteur member state on behalf of the EU. EU rapporteur member states are then invited to ratify the authorisation or require additional information before granting local authorisations.

Expanding territorial reach

The growth of our flagship biofungicide, Mevalone, continues apace as we seek new markets for its sale and use, bringing its benefits to farmers in additional corners of the world. Mevalone now has 10 disease targets, 97 crop uses, and market approval in 21 different territories.

We were pleased that 2024 commenced with the announcement of regulatory authorisation for Mevalone in California. This approval is particularly noteworthy, as California is the largest wine-producing region in the United States, representing approximately 84% of the nation's total production. Furthermore, the State enforces stringent agricultural regulations that prioritise sustainable farming practices. With the timing of this authorisation, we are positioned to begin distributing Mevalone to grape growers across California through our commercial partner, Sipcam, and we anticipate generating significant revenue in 2025 as we continue to refine our commercial and marketing strategy. Refinements of the current label will yield additional growth opportunities in years to come even as some restrictions do little to dampen enthusiasm for Mevalone in California and beyond.

We have also had a number of regulatory breakthroughs for Mevalone in Europe and elsewhere in 2024. Notably, Eden received regulatory authorisation for use the use of Mevalone on grape vines to control Botrytis and apples to prevent storage diseases in Germany. This was later complemented by the news in December that Mevalone had been registered as an input for organic farming across the nation. Germany is widely considered as one of the strictest regulatory environments in Europe (and more broadly), and our regulatory success here is clear validation of the strong efficacy of our product, as well as its flexible and environmentally friendly qualities.

Eden also obtained a label extension in Spain for Mevalone, marketed as Araw in the region. This extension expands the biofungicide's use to include 22 new crops on 4 new fungal diseases. Most notably, these new crop additions include almonds, which is one of the largest tree crops in Spain after olives with the nation ranking third in terms of global production.

Our newly formulated version of Mevalone, marketed as Novellus+, has achieved regulatory approval following the Mexican authorities' authorisation for the product's use against botrytis on a range of horticultural crops. We expect the addition of Novellus+ to meaningfully contribute to the Company's revenues in the coming seasons.

Building on our strong partnership with Sumi Agro Europe across central Europe, we were pleased to have appointed the firm as our exclusive distributor for Austria to help grow our market presence in these specialist wine and apple markets.

The growth potential of our bionematicide was also illustrated by Cedroz's temporary approval in Greece for use on potatoes against wireworms for the 2024 growing season. Wireworms, the larvae of click beetles (Elateridae), are a significant global agricultural pest, particularly in temperate regions. They attack the roots, seeds, and underground stems of crops such as potatoes, corn, wheat, and carrots. The severity of the problem varies depending on the species, soil type, climate, and crop rotation practices. The resultant product approval has helped buoy Cedroz sales and we continue to work with Eastman and the local regulators to secure its long-term authorised use in Greece and elsewhere. Moreover, wireworms represent a significant pest for growers in certain parts of the world.

Generally, Cedroz sales continue to rebound after a disappointing period caused by production issues which have now been resolved.  Revenue growth in Morocco is particularly noteworthy, as sales there have propelled the country into position as one of Eden's largest commercial markets.  We are encouraged by Eastman's new-found confidence in Cedroz following a challenging period, and it truly gratifying to see growers embrace the product with such enthusiasm, as was evident during a recent marketing trip with Eastman to the north African nation.

Enhancing existing products

We are currently working towards a significant label extension for Mevalone to include use on grapes to treat the major crop disease, downy mildew. Given the fast pace with which key competitor products targeting this disease are being removed from the European market, this label extension has the opportunity to dramatically grow Mevalone's addressable market. Subject to regulatory timelines, we anticipate a positive verdict as soon as 2025.  As always, the pace of regulatory action is largely outside of Eden's control, and we hope to update the market as soon as we have news on this process.

Progressing our development pipeline

We are also focused on the progression of new products within our development pipeline, which are based on our proprietary terpene-based chemistry and yeast-based microencapsulation technology, though it should be noted that with Eden's newly-developed in-house formulation capabilities, we now possess a great deal of flexibility in terms of how and what we use to formulate our products.

The most advanced of our new products is our first bioinsecticide which will target key pests such as aphids, spider mites, and whiteflies. In June, we announced encouraging results which involved more than 30 laboratory trials, and more than 140 field trials conducted in Europe and the United States. Results showed strong efficacy against all life stages of the target pests and demonstrated equivalence or superior performance when compared with registered biological reference products produced by some of the world's leading biochemical companies. We are now in the process of negotiating an agreement with potential commercial partners to support our marketing efforts and help bring this product to market. We expect to make an announcement on our progress in due course. Concurrently, we are also working towards regulatory submissions in the US and Europe. Subject to authorisation, first sales of the product could be achieved in the coming year in the US, given our active ingredients have already been registered at a federal level.

Over the past year, we have also started work on two additional product candidates which are in the early stages of development. The first of which is a second biofungicide which is being formulated to target late blight and similar pathogens primarily on potatoes and a range of other high-value fruits and vegetables. There has already been a considerable amount of interest in this product, and we are actively engaged with a number of industry partners who are in the early stages of screening the product.

The second of these is another bioinsecticide. This will specifically target Lepidoptera, an important pest target which is not covered by our first bioinsecticide and represents a substantial commercial opportunity for the company where there is a large gap in available sustainable solutions.

Increasing team capacity and capability

As our business continues to evolve, we have needed to ensure that Eden has the capabilities and capacity to keep up with the pace of development and regulatory workstreams. Therefore, we are delighted to have made several important hires in strategic areas to guide Eden through its next growth chapter. These include the filling of key regulatory and commercial roles such as Global Commercial Lead, Head of Regulatory Affairs, and Global Product and Marketing Lead, respectively. Each of the individuals that we have hired brings rich industry experience at international agchem companies and strong leadership in their field.

At Board level, we welcomed Derek McAllan as a new Non-Executive Director and Chairman of the Audit Committee. Derek brings great balance to the Board considering his accounting remit as a Partner of RSM UK and extensive background advising listed and private businesses across the life sciences sector.

Section three: Financial review

Revenue for the year was £4.3 million which marked a 34% increase on the previous year (2023: £3.2m). This reflects a significant increase in product sales which were £3.6m, a 38% rise on last year's product sales (2023: £2.6m).

Our operating loss for the year was £2.2m (2023: loss of £1.9m).

Administrative expenses increased in line with expansion of the development and commercialisation team to £3.5 million (2023: £3.0 million), while additions to intangible assets, including development costs, increased to £2.5 million from £1.7 million in 2023.

While the loss before taxation decreased to £2.2m (2023: £6.9m loss), this was driven by a significant non-cash impairment of intangible assets in 2023 of £5.0m which was not repeated in 2024.

The increased strength of the Pound Sterling against the Euro throughout 2024 (from €1.15 at the beginning of the year to €1.21 per GBP as at 31 December 2024) negatively impacted reported revenue by £0.2 million.

As forecast, regulatory costs have been relatively high in 2024 due to the costs associated with the renewal of Eden's three active ingredients in the EU. Eden has also invested meaningfully in the development of its product portfolio, both through advancing regulatory submissions (new formulations and label extensions of existing products) and through laboratory and field work to assist in the commercialisation of those products.

Our cash balance at year-end was £3.7m (2023: £7.4m).

At present, Eden does not expect to need to raise additional capital to meet its existing working capital requirements for the foreseeable future.

There is currently no near-term plan to pay a dividend. However, the Board continues to review the Company's dividend policy.

Section four: 2025 outlook

On 13 January 2025, we reiterated our £5 million revenue forecast for the 2025 financial year. This has been underpinned by repeat sales of Ecovelex made under extended emergency approval in Italy and other European territories, as well as sales growth of Mevalone and Cedroz due to increased market share and approvals received in 2024.

There are a number of potential approvals and events that have not been included in the 2025 revenue forecast, which would, if realised, add material upside if these took place. These include the following: 

·    Full EU authorisation for Ecovelex well in advance of the year-end, expanding its use beyond Italy on a long-term basis;

·    Approval of Mevalone for the treatment of downy mildew in France, marketed locally as Esseva; and

·    Signing of a commercial agreement for exclusive distribution rights for Eden's insecticide

Furthermore, we expect the ban of competitor products to Mevalone and Cedroz to have a positive impact on the Company, where we are well-placed to increase our market share. However, the immediate effects are unpredictable considering the potential stocking (and allowed extended use) of these products before their regulatory ban.

The Company's overheads are expected to increase in 2025 compared to 2024 as a result of the full-year impact of the commercial and regulatory teams, but investments in regulatory and product development are expected to stabilise due to the reregistration costs for our active ingredients in the EU that took place last year.

Section six: Summary

I would like to take the opportunity to thank everyone who has supported our journey to date. The backing of shareholders, regulators, and industry has been outstanding, but it is the efforts and skills of our exceptional workforce that have established a company with such strong foundations and an excellent culture based upon innovation, creativity and the shared purpose of bringing sustainable and effective crop protection to farmers around the world. Eden is very well-placed to continue its growth trajectory and maximise the potential of our upcoming milestones. 

Sean Smith

Chief Executive Officer

2 May 2025

Consolidated statement of comprehensive income

For the year ended 31 December 2024

Consolidated statement of financial position

As at 31 December 2024

Company statement of financial position

As at 31 December 2024