AFYREN (ALAFY) H2 2024 earnings summary

Executive summary

• First plant sold several dozen tonnes of biobased acids in H2 2024, while technical adjustments pushed continuous production from the initial 2024 target to 2025.

• Priority is stable continuous operation, followed by ramp-up and expansion; commercial commitments for the first plant exceed €165m cumulatively.

Financial highlights

• 2024 revenue €2.862m, down 15% YoY; licensing and industrial know-how development €1.370m, down 3%, and other services €1.492m, down 24%.

• Current operating loss €6.078m vs €5.928m in 2023; net loss €9.754m vs €9.586m, reflecting costs ahead of continuous production.

• Net financial income rose to €1.891m from €1.142m, supported by interest income on cash and financing to the plant subsidiary.

• Year-end cash and cash equivalents €33.538m vs €49.559m; total borrowings and financial liabilities €3.317m, including lease liabilities.

• Operating cash outflow €5.623m and investing cash outflow €9.114m; investing included a €10m shareholder loan to the plant subsidiary, partly offset by €1.446m interest received.

Outlook and guidance

• Continuous production at the first plant is targeted for 2025; gradual ramp-up aims for annual revenue of ~€35m, including fertiliser, and a 25% current production EBITDA margin, with breakeven expected after a few quarters of continuous operation.

• A prospective second industrial unit in Asia or expansion in France targets 24,000–28,000 tonnes, ~€60m production revenue and a 30–35% current production EBITDA margin at full capacity.

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

• Continued R&D investment aims to extend the product portfolio beyond seven organic acids; Thailand is at the forefront of international development planning.