M Vest Water (MVW) Q2 2024 earnings summary

Executive summary

• Surpassed total 2023 revenue by end of Q2 2024, reflecting strong demand, increased sales and marketing focus, and successful international expansion.

• Secured first international contracts in the Middle East (oil & gas) and Iceland (aquaculture), with exclusive agent agreements for regional expansion.

• Achieved a technology breakthrough with Norwafloc/NORWAFLOC®, enabling full substitution of synthetic polymers in multiple industries.

• Completed a NOK 28 million capital injection via private placement and shareholder loan conversion at market price, strengthening financial position.

• Recognized as a preferred solution in aquaculture, with contracts in Norway and Iceland.

Financial highlights

• Q2 2024 revenue reached NOK 9.9 million, up from NOK 3.6 million in Q2 2023; H1 2024 revenue at NOK 12.6 million, exceeding FY 2023.

• EBIT for Q2 2024 was negative NOK 4.7 million; loss before tax was NOK 4.8 million.

• Cash flow from operating activities was negative NOK 1.8 million in Q2 2024.

• Cash and cash equivalents at end of June 2024 were NOK 17.2 million; equity ratio at 81%.

• Equipment sales to aquaculture remain the largest revenue contributor, with recurring chemical sales rising.

Outlook and guidance

• Recurring chemical sales with higher margins are expected to increase, supporting growth in recurring revenue streams.

• Revenue for H2 2024 is difficult to project due to a diverse tender portfolio; both equipment and chemical sales possible.

• Gross margins are expected to improve as chemical sales grow as a share of revenue.

• Expansion into new markets may require additional working capital.

• Business model remains capital-light and scalable.