VANCOUVER, B.C. — GLG Life Tech Corp., which develops stevia extracts for use in low-calorie food and beverage products, had a net loss after income taxes and non-controlling interests of C$24.6 million ($24.2 million) for the third quarter ended Sept. 30, which compared with net income after income taxes and non-controlling interests of C$1.8 million ($1.8 million), or C$0.06 per share, in the third quarter of the previous year. Third-quarter revenue of C$1.7 million ($1.7 million) compared with C$21 million ($20.7 million) in the previous year’s third quarter.
Vancouver-based GLG Life Tech said its customers continue to deal with aftertaste issues and inventory levels. Customers and distributors still have existing inventory left from sales that GLG Life Tech made to them in 2010 and 2011. GLG Life Tech said it is seeing a slower rate of product launches than originally expected in North America, Central America and South America.
“The end customers had experienced formulation challenges with stevia (aftertaste problems) and this had led to longer R.&D. projects and product launch delays,” GLG Life Tech said when reporting third-quarter results Nov. 14. “The company expects demand for its products to recover starting in the fourth quarter based on the current customer prospects that it is working on and the new products that it has launched which provide solutions in the stevia formulation problems that the company previously announced.”
For the nine months ended Sept. 30, GLG Life Tech had a net loss after income taxes and non-controlling interests of C$42.9 million, which compared with net income after income taxes and non-controlling interests of C$103,000, or C$0.01c per share, in the third quarter of the previous year. Nine-month revenue of C$24.4 million compared with C$39.6 million in the same time period of the previous year.
GLG Life Tech expects the majority of its revenue growth to come from China in 2011 and beyond. ANOC is a joint venture involving GLG Life Tech and China Agriculture and Healthy Foods Co. (CAHFC). ANOC was established for the sale and distribution of zero-calorie beverage and food products in China that are sweetened with stevia extracts from GLG Life Tech.