Hoffmann Green Cement Technologies : Inside Information / News release on accounts, results – Marketscreener.com
Hoffmann Green announces its
2022 half-year results
PRESS RELEASE – SEPTEMBER 2022
Chaillé-sous-les-Ormeaux (France), September 19, 2022 – 8:00 am CEST: Hoffmann Green
Cement Technologies (ISIN: FR0013451044, Ticker: ALHGR), an industrial player committed to decarbonizing the construction sector that designs and distributes innovative clinker-free cement, announces its results for the first half of 2022. The Company’s Supervisory Board met on September 16, 2022 and reviewed the accounts to June 30, 2022 approved by the Management Board.
Key elements of the Company’s consolidated half-year accounts
€ thousands – IFRS
At June 30, 2022
At June 30, 2021
Revenue
544
540
EBITDA
-3,519
-2,561
Recurring operating profit/loss (EBIT)
-4,720
-3,592
Financial profit/loss
-1,455
33
Tax
1,586
835
Net profit/loss
-4,558
-2,684
€ thousands – IFRS
At June 30, 2022
At December 31, 2021
Cash and cash equivalents
40,999
56,704
Shareholders’ equity
76,895
81,399
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PRESS RELEASE – SEPTEMBER 2022
Julien Blanchard and David Hoffmann, co-foundersof Hoffmann Green Cement Technologies, said: “The first half of 2022 allowed us to achieve several defining milestones in our development. Firstly, the signing of contracts with major construction players such as Bouygues Immobilier has boosted our order book. Abroad, we have completed the first steps in our development with the setting up of a subsidiary in Switzerland and the signing of our first distribution contract in the United Kingdom. At the same time, we are continuing to deploy our industrial roadmap with the finalization of the H2 site that will become operational in the coming months and the signing of an occupancy agreement for land in Dunkirk Major Sea Port, where we will build the H3 plant. Furthermore, we are optimizing our cost structure in order to benefit from increased competitiveness thanks to the acquisition of ABC Broyage, which will enable us to internalize part of the processing of our raw materials. Buoyed by this momentum and a favorable regulatory context with the French RE2020 Environmental Regulations, we intend to intensify our development in the coming months. In the first half of this year, the growth in volumes sold fell short of expectations as a result of building projects being postponed due to rising inflation and the unprecedented shortage of construction materials that is affecting the entire sector. However, in the medium term, the current energy crisis is demonstrating just how important it is to move towards decarbonized and energy-efficient solutions such as those deployed by Hoffmann Green, which uses a heating-free manufacturing process. This unprecedented crisis thus confirms our positioning as a leading player of the cement industry’s energy transition“.
An active first half of 2022 with several commercial, industrial and R&D milestones achieved
Increase in the order book and the volume of cement sold:
International expansion of Hoffmann cements:
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PRESS RELEASE – SEPTEMBER 2022
Execution of the industrial strategy and optimization of the logistics circuit:
Intellectual property extended and construction of a concrete mixing plant 4.0 to further strengthen barriers to entry:
Continuation of the implementation of the CSR roadmap and change in Governance:
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PRESS RELEASE – SEPTEMBER 2022
2022 half-year results
In the first half of 2022, the Company continued its commercial development with a more than 11% increase in the volumes of cement sold compared to a year ago (2,087 tons in H1 2022 vs. 1,875 tons in H1 2021). The Company generated €0.5 million in revenue, essentially corresponding to €0.4 million in cement sales and €0.1 million in billed engineering services. This sales momentum is less dynamic than expected because of the high inflation and shortage of building materials affecting builders, contractors and real-estate developers. This unprecedented situation has led to construction work being pushed back by, according to the Company’s estimates, an average of 6 to 12 months.
EBITDA was -€3.5 million at June 30, 2022 versus -€2.6 million at June 30, 2021. This decrease was primarily due to the increase in raw material purchases within the framework of R&D tests and developments (-€0.7 million) and the resumption of trade fairs and shows (-€0.2 million). The sales, R&D and technical teams have been strengthened in accordance with the development plan. Other operating income and expenses were globally stable compared to last year.
The H1 2022 Recurring Operating Loss was €4.7 million. The deepening of this loss compared to H2 2021 (-€1.1 million) was due to the change in EBITDA and the increase in depreciation charges.
At June 30, 2022, there was a Financial Loss of €1.5 million, impacted by UCITS depreciations and losses and the effects of the war in Ukraine on the financial markets.
Altogether, once tax income of €1.6 million is taken into account, the Net Loss at the end of June 2022 was €4.6 million.
The Company’s half-year accounts to June 30, 2022 will be published in the half-year financial report that will be made available to shareholders on the Company’s website no later than October 28, 2022, in accordance with legal and regulatory provisions.
Solid financial structure in line with the budget
At June 30, 2022, the Company had a solid balance sheet with Shareholders’ Equity of €76.9 million, up €14.6 million compared with the figure at June 30, 2021 as a result of the capital increase successfully carried out in December 2021 (€22.5 million).
Hoffmann has €41 million in available cash (€52.8 million including placements). The change in the cash position over the period (-€15.7 million) was due to investment cash flow (-€11.3 million) primarily associated with the construction of the H2 production plant, operating cash flow (-€3.1 million) and loan repayments (-€1.3 million).
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PRESS RELEASE – SEPTEMBER 2022
Strategy and Outlook: medium-term financial targets reaffirmed, driven by a favorable inflationary and regulatory context strengthening Hoffmann Green’s model
In H2 2022, the Company will continue to deploy its operational roadmap with the following priorities:
2026 guidance reaffirmed: sales of €130 million and EBITDA margin of 40%
Contrary to traditional cement, Hoffmann Green sets itself apart through its energy sobriety thanks to a heating-free and clinker-free production process requiring little electricity. Within the current context of energy price inflation, the pertinence of Hoffmann Green’s positioning is thus stronger than ever. At the same time, the Company is planning to expand its fleet of solar trackers to 12 units by the end of 2022 in order to increase its energy self-sufficiency. Furthermore, from 2025, the French RE2020 environmental regulations will require construction players to use decarbonized cements such as those produced by Hoffmann Green.
Buoyed by its solid financial situation and this favorable medium-term context, the Company continues to have confidence in the pertinence of its project and in its ability to meet its commercial and financial targets. In France, it is thus reaffirming its objective of selling 550,000 tons of cement a year by 2026 through three production sites, giving revenue of approximately €120 million, corresponding to a French market share of 3%. Abroad, the Company wants to grow via licensing agreements with partners in charge, on their geographical territory, of financing, building and running Hoffmann Green Cement production plants and marketing Hoffmann Green Cement’s technologies. The Company aims to have 4 plants up and running by 2026 generating revenue of around €10 million. The Company feels that it should be able to achieve an EBITDA margin of approximately 40% by 2026.
At the same time, the Company will closely monitor the evolution of the increase in energy and transport costs and the supply difficulties affecting certain raw materials that are currently impacting the construction sector.
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Hoffmann Green Cement Technologies SA published this content on 19 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 September 2022 07:09:07 UTC.