Cinis Fertilizer (CINIS) Q3 2024 earnings summary

Executive summary

• Achieved first commercial deliveries of potassium sulfate, reaching growers in about 25 countries via Van Iperen International.

• Production ramp-up at the Köpmanholmen facility continues, with high product quality confirmed by external analysis.

• Signed a new agreement with Ragn-Sells to upcycle sodium sulfate, turning a cost into revenue.

• Issued SEK 550 million in senior secured dark green bonds, refinancing all previous debt and strengthening liquidity.

Financial highlights

• Q3 2024 net sales: SEK 15.4 million (Q3 2023: SEK 0); YTD net sales: SEK 15.4 million.

• Q3 operating loss: SEK -27.1 million (Q3 2023: SEK -8.0 million); YTD operating loss: SEK -61.3 million.

• Q3 net loss after financial items: SEK -33.7 million (Q3 2023: SEK -8.1 million); YTD: SEK -70.2 million.

• Cash flow from operating activities after working capital: Q3 SEK -41.9 million; YTD SEK -87.4 million.

• Liquidity at period end: SEK 20.5 million (Q3 2023: SEK 344.0 million).

Outlook and guidance

• Full production rate at Köpmanholmen expected at the beginning of 2025.

• Two more shiploads planned before year-end, though port congestion may delay some deliveries to January.

• Next US facility in Hopkinsville, Kentucky, planned for commissioning in 2026.

• Long-term target: six production facilities and 1.5 million metric tons annual capacity by 2030.