CirChem (CIRCHE) Q4 2024 earnings summary

Executive summary

• Achieved breakthrough year with strong growth and two profitable quarters, reaching break-even for the full year 2024.

• Demand for circular solvent recycling services increased, driven by sustainability and supply chain needs.

• Strengthened customer base, including a new partnership with a leading automotive manufacturer.

• Focus remains on expanding customer relationships and developing new circular solutions.

Financial highlights

• Net sales for Q4 2024 rose 82% to 6,427 tkr (3,540), and for the full year increased 260% to 20,658 tkr (5,745) compared to 2023.

• EBIT for Q4 was 674 tkr (-1,601), and for the year 104 tkr (-15,623), reflecting a return to profitability.

• EBITDA for Q4 was 721 tkr (-1,582), and for the year 261 tkr (-15,573).

• Earnings per share for the year improved to -0.04 SEK (-0.64) year-over-year.

• Cash flow for the year was -4,655 tkr, with cash and equivalents at 11,928 tkr at year-end.

Outlook and guidance

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

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

• Plans for geographic expansion in Northern Europe with three additional plants, aiming for 1,000 MSEK in potential revenue.