Osmosun (ALWTR) H2 2024 earnings summary

Executive summary

• 2024 marked by growth investments, increased headcount, and production capacity, but no major project signings, leading to a challenging year financially.

• Refocus underway on core business of modular, solar-powered desalination units, with new small-to-medium projects signed, especially in Morocco.

• Change in governance with Julien Cauvy joining as Deputy CEO and Director.

Financial highlights

• Revenues fell to €1.9 million in 2024 from €3.0 million in 2023, due to lack of new major projects.

• Gross margin turned negative at -€1.3 million, compared to +€1.2 million in 2023, mainly due to higher subcontracting costs in Mauritania.

• Adjusted EBITDA loss widened to -€5.3 million from -€1.9 million year-over-year, reflecting lower gross margin and higher operating expenses.

• Net income loss deepened to -€6.3 million from -€3.1 million in 2023.

• Operating free cash flow outflow increased to -€5.0 million from -€2.8 million in 2023.

Outlook and guidance

• Cash horizon estimated until July 2025; company is seeking new funding and industrial partnerships to extend liquidity.

• Focus on adapting organizational structure and cost base to current business scale and market conditions.