AFYREN (ALAFY) H1 2024 earnings summary

Executive summary

• H1 remained pre-continuous-production: AFYREN NEOXY delivered first fertilizer tonnes and produced several tonnes of acid, but continuous production had not started by 30 June 2024.

• Results were broadly in line with H1 2023 as product-sale revenues awaited the plant ramp-up; H1 net loss was €5.3m.

Financial highlights

• H1 revenue was €1.364m, down 30% YoY from €1.956m; licensing and know-how revenue was €709k, while other services fell to €656k from €1.247m.

• Operating loss widened to €3.590m from €3.097m; net loss was €5.322m versus €5.123m, while net financial income rose to €978k from €503k.

• Cash and cash equivalents were €43.402m at 30 June, down €6.157m in H1; total assets were €63.917m versus €70.427m at year-end 2023.

• Operating cash outflow was €3.383m; investing outflow was €1.735m and financing outflow €1.039m, bringing net cash reduction to €6.157m.

Outlook and guidance

• 2028 ambition: three units with ~70,000 tonnes installed acid capacity, at least two in continuous production; at full capacity, cumulative revenue above €150m and recurring EBITDA margin ~30%.

• Continuous production by end-2024 depends on replacing corrosion-damaged separation-purification equipment and improving process reliability; full production cycles were targeted to resume at end-November 2024.

• Plant break-even target for 2025 was confirmed; a broader financing package, including debt, was being structured to fund start-up delays and ramp-up.