CirChem (CIRCHE) Q2 2024 earnings summary

Executive summary

• Achieved best second quarter to date, with strong start to Q3 and significant operational milestones.

• Revenue growth driven by increased demand for circular solvent recycling services.

• Largest single order to date secured with Stena Recycling Denmark; new contract with leading vehicle manufacturer.

• Expansion of Vargön facility underway to meet growing demand.

• Additional financing secured via directed share issue and convertible loan.

Financial highlights

• Q2 2024 net revenue: 1,483 tkr, up 56% year-over-year; H1 2024 net revenue: 3,989 tkr, up 164%.

• Q2 2024 EBIT: -2,487 tkr (improved from -4,644 tkr); H1 2024 EBIT: -5,631 tkr (improved from -10,542 tkr).

• Q2 2024 EBITDA: -2,446 tkr; H1 2024 EBITDA: -5,557 tkr.

• Q2 2024 EPS: -0.09 SEK (vs. -0.16); H1 2024 EPS: -0.21 SEK (vs. -0.48).

• Cash and cash equivalents at period end: 14,042 tkr.

Outlook and guidance

• Expects significant revenue and climate impact from Stena Recycling Denmark order in H2 2024.

• Anticipates start of deliveries to new vehicle manufacturer in Q4 2024.

• Short-term goal: positive cash flow and break-even at Vargön facility.

• Medium-term goal: 25,000 tons annual capacity, 15% EBITDA margin at 250 MSEK revenue.