Carbios (ALCRB) H1 2024 earnings summary

Executive summary

• Construction of the world's first commercial-scale PET enzymatic biorecycling plant in Longlaville, France is progressing on schedule, targeting commissioning in late 2025 and production in 2026, with full capacity by 2027.

• Multiple Letters of Intent for licensing agreements signed with Zhink Group (China), SASA (Turkey), and FCC Environment UK, supporting international expansion.

• Strategic partnerships established with Selenis for PETG recycling and Sleever for PLA biodegradation commercialization, with FDA and BPI certifications obtained.

• Feedstock supply secured for over 80% of plant capacity through agreements with major waste and textile suppliers.

• Patent portfolio expanded to 59 families and 498 titles, with over 150 employees and ongoing R&D in new polymers.

Financial highlights

• H1 2024 net loss was €18.1m (vs. €13.7m in H1 2023), with operating loss of €20m, driven by increased R&D, staffing, and commercial expenses.

• Cash and cash equivalents at June 30, 2024, stood at €120.7m, down from €191.8m at year-end 2023, mainly due to €55m invested in plant construction.

• Total cash and term deposits were €144m at June 30, 2024, with €42.5m in expected public funding.

• Tangible assets increased to €76.5m, reflecting ongoing investment in the Longlaville plant.

• Financial income improved due to capital increase, deposit returns, and interest on investments.

Outlook and guidance

• Longlaville plant expected to generate over €150m revenue and over €50m EBITDA at full ramp-up, with break-even targeted in 2027.

• Licensing model to provide upfront fees, recurring enzyme revenue share, and premium royalties.

• PLA biodegradation commercial activity to start end of 2024 or early 2025.

• Targeting 4–8% share of the recycled PET market by 2030 and 8–12% by 2035.

• Ongoing expansion of licensing agreements and international growth in PET and PLA technologies.