WPU - Waste Plastic Upcycling (WPU) Q2 2024 earnings summary

Executive summary

• Q2 2024 focused on consolidating production with new gas balloon and wax separators, improving product separation and circularity.

• Production capability and capacity improvements ongoing, with efforts to reduce downtime.

• Evaluating a new factory site in Vordingborg for a second upcycling facility; positive negotiations underway.

• ISCC PLUS certification renewed for key subsidiaries after successful audits.

Financial highlights

• Q2 2024 pre-tax loss was -14,628 tDKK, compared to -13,767 tDKK in Q1; H1 2024 pre-tax loss totaled -28,395 tDKK.

• Operating revenue in Q2 was 1,249 tDKK, up from 254 tDKK in Q1, but 6.1 mDKK below expectations.

• Gross profit for Q2 was -4,441 tDKK; staff costs for Q2 were -5,738 tDKK.

• Cash flow from operating activities in Q2 was -22,468 tDKK; net change in cash and cash equivalents was -10,882 tDKK.

• Cash and cash equivalents at June 30, 2024, stood at 1,584 tDKK, with short-term bank credit facilities at -20,144 tDKK.

Outlook and guidance

• REACH approval for wax sales expected before end of Q3, enabling invoicing of produced wax.

• Purchase of higher-quality waste plastic may continue to impact P&L, with 834 tDKK budgeted for the remainder of 2024.

• Temporary storage costs for wax expected to end in Q3 as REACH approval is obtained.