CirChem (CIRCHE) Q3 2024 earnings summary

Executive summary

• Achieved first-ever quarterly profit, with net sales up nearly 1,400% year-over-year to 10.2 MSEK in Q3 2024, and EBIT of 5.1 MSEK, confirming strong growth and market leadership in circular solvent recycling.

• Strategic partnerships in the automotive sector and new production line investments are driving expansion and recurring revenue.

• Focus remains on sustainable, profitable growth and operational resilience amid global uncertainties.

Financial highlights

• Q3 2024 net sales: 10,242 tkr (693 tkr Q3 2023); EBIT: 5,059 tkr (-3,480 tkr); EPS: 0.15 SEK (-0.13 SEK).

• Jan–Sep 2024 net sales: 14,231 tkr (2,205 tkr); EBIT: -571 tkr (-14,022 tkr); EPS: -0.05 SEK (-0.59 SEK).

• Q3 EBITDA: 5,095 tkr (-3,469 tkr); Jan–Sep EBITDA: -461 tkr (-13,991 tkr).

• Cash flow for Jan–Sep: -6,329 tkr (9,731 tkr); cash at period end: 10,254 tkr (19,509 tkr).

• Equity per share: 1.24 SEK (1.28 SEK); equity ratio: 60.56% (61.43%).

Outlook and guidance

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

• Medium-term: expand to 25,000 tons annual capacity, targeting 15% EBITDA margin on 250 MSEK sales.

• Long-term: potential for 1,000 MSEK sales with three additional plants in Northern Europe.