Axolot Solutions (AXOLOT) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 966 tkr, down from 1,182 tkr in Q2 2023, mainly from commercial installations, service, and demo activities.

• Operating result for Q2 2024 was -5,210 tkr, impacted by continued optimization work and increased personnel costs due to a new CEO.

• Net result per share for Q2 2024 was -0.03 kr, compared to -0.04 kr in Q2 2023.

• Cash flow from operations and investments in Q2 2024 was -4,470 tkr; cash at period end was 6,437 tkr.

• After Q2, a directed share issue and credit facility were secured to fund strategic projects and market expansion.

Financial highlights

• Net sales for H1 2024 increased to 4,316 tkr from 2,491 tkr in H1 2023, mainly from AxoPur installations and related services.

• Operating result for H1 2024 was -10,564 tkr, compared to -8,725 tkr in H1 2023; higher costs due to process optimization and quality work.

• Net result for H1 2024 was -10,535 tkr, compared to -8,766 tkr in H1 2023.

• Cash at end of June 2024 was 6,437 tkr, down from 16,968 tkr at year-end 2023.

• Equity at period end was 11,155 tkr, compared to 15,852 tkr at June 2023.

Outlook and guidance

• Several strategic collaborations and customer projects are planned for the autumn, focusing on PFAS and microplastics solutions.

• Market interest is increasing due to stricter EU BAT-AEL requirements and heightened awareness of PFAS and microplastics issues.

• Expansion into the Norwegian fish processing industry is ongoing, though delayed by regulatory approvals.

• Management remains optimistic about a market breakthrough, supported by new partnerships and product innovations.