TerraVia launches AlgaPrime DHA with Bunge, sustainable specialty feed ingredient for the aquaculture market
In California, TerraVia reported total revenue of $10.9mn, down from consensus estimates $11.9mn, respectively. The ~13.6% y/y decrease was primarily the impact of strategic refocusing of the business, which led to a subsequent de-emphasis on revenue derived from industrial applications.
Cowen & Company’s Jeffrey Osborne wrote: “[TerraVia] provided more insight into its transition into a Food, Nutrition, and Specialty Ingredient company. We are constructive about the prospects of the higher margin food business relative to the legacy industrial business, but continue to see 2016 as a transition year with potentially stronger growth in 2017-18. Management highlighted early adoptions of the company’s AlgaVia Lipid-Rich Whole Algae Powder as an egg replacement in cookies, and positive feedback on an in-house test of AlgaWise oil in which 93% of those polled said they would recommend the healthy cooking oil substitute to friends or family. [TerraVia] was also optimistic on the partnership with VMG which will provide growth capital and new opportunities in food; and the $200mn deal with Unilever, which is beginning to ramp up.
“In conjunction with the earnings release, [TerraVia] announced the launch of AlgaPrime DHA with Bunge Limited to provide a sustainable specialty feed ingredient for the aquaculture market. DHA (docosahexaenoic acid) is a long chain omega-3 fatty acid that is a critical element for healthy growth and development, and is a main ingredient needed in the production of fish feed for salmonids. Utilizing algae based products from [TerraVia] provides a sustainable non-fish source of DHA without increasing pressure on over-fished oceans.”
Category: Fuels
