Axolot Solutions (AXOLOT) Q3 2024 earnings summary

Executive summary

• Achieved significant milestone with full-scale test at major pulp mill, validating AxoPurⓇ technology and supporting future sales opportunities.

• Strategic merger with Mellifiq completed, making Axolot the second-largest shareholder in Mellifiq and granting exclusive licensing rights for key markets.

• Focused on expanding international partnerships and leveraging synergies for accelerated growth.

Financial highlights

• Q3 2024 net sales reached 2,117 tkr, up from 687 tkr in Q3 2023, mainly from full-scale testing at a pulp mill.

• Operating loss for Q3 was -5,856 tkr (Q3 2023: -3,746 tkr); net loss was -6,033 tkr (Q3 2023: -3,753 tkr).

• For the first nine months, net sales totaled 6,433 tkr (2023: 3,178 tkr); operating loss was -16,420 tkr (2023: -12,471 tkr).

• Cash flow from operations and investments in Q3 was -5,785 tkr; cash at period end was 3,739 tkr.

• Equity at period end was 8,645 tkr, down from 12,092 tkr a year earlier.

Outlook and guidance

• Anticipates decision on large-scale installation at pulp mill by year-end, with potential delivery and startup in 2025/26.

• Expects to accelerate sales of AxoPur systems through Mellifiq partnership and expand into 2–3 new international markets in 2025.

• Focus on integration with Mellifiq and realization of identified revenue and cost synergies.