- On the path to sustainable production
- AFYREN NEOXY: significant steps toward continuous
production
- Industrial development continues in France and abroad
- Further improvement in extra-financial rating (83/100;
+4pts)
- A solid financial base thanks to disciplined management
- Tight control of operating expenses in 2023 kept loss stable
vs. 2022
- Limited cash consumption: €50 million in cash available as of
December 31, 2023
- Timetable adjusted as operational and financial goals are
maintained
- AFYREN NEOXY: start-up of continuous production in 2024, with
break-even in 2025, as communicated in December 2023
- Plants 2 and 3: commissioning schedule adjusted
- Operational and financial goals for the 3 units maintained
Regulatory News:
AFYREN (Paris:ALAFY), a greentech company that offers
manufacturers natural, low-carbon ingredients produced using unique
fermentation technology based on a completely circular model,
announced today its audited annual financial results for the year
ended December 31, 2023, as approved by the Board of Directors on
March 28, 2024.
Nicolas SORDET, CEO of AFYREN, said: "Founded in 2012
with the aim of offering an industrial-scale solution for
transforming biomass co-products into alternatives to
petroleum-based products, AFYREN has taken just ten years to move
from the fundamental research phase to industrial production. By
focusing on low-value raw materials, processed with our innovative
natural fermentation technology, we can implement a profitable
business model independent of oil-market fluctuations. The
ingredients we produce meet the critical needs of manufacturers
seeking more natural products and/or products with a reduced carbon
footprint. This is underscored by the fact that our 1st AFYREN
NEOXY plant has 165 million euros in sales secured by contracts.
This industrial and commercial maturity sets us apart from other
high-impact projects. Achieving our operational, financial and
environmental ambitions is our priority, beginning with the
start-up of continuous production at AFYREN NEOXY."
rEcent milestones
Update on AFYREN NEOXY's
progress
Following the on-time delivery of the AFYREN NEOXY plant in 2022
and its successful industrial commissioning, operational teams
focused in 2023 on the start-up of production, with the manufacture
of several tons of products and the delivery of the first batches
in mid-2023.
Work carried out in the second half of 2023 revealed the
following findings:
- Fermentation cycles (a biological process) carried out since
2022 have confirmed the core of the process, with yields coming in
as expected.
- Some post-fermentation stages (related to separation and
purification by chemical processes) are not yet stable enough to
allow the plant to run continuously.
- To date, work has focused on the separation stage. This
requires long, continuous cycles to carry out the adjustments and
modifications that will enable operation under the pre-defined
design.
In light of these factors, in December 2023 the Company revised
its operating timetable to aim for the start of continuous
production in 2024, with break-even1 in 2025.
Shareholders AFYREN and Bpifrance have confirmed their
commitment in 2023 by subscribing to a cash capital increase and
convertible bonds. Any additional plant requirements in 2024 will
be covered.
In recognition of the work carried out by AFYREN NEOXY and its
AFTER-BIOCHEM consortium partners and the industrial milestones
achieved, AFYREN NEOXY received at the end of 2023 a further
payment of €3.4 million from CBE JU2, a European Union entity.
In this same context, AFYREN and SUEZ announced in March 2024
that they would continue their collaboration on the use of waste
from SUEZ's collection and treatment activities (in particular
bio-waste) in the AFYREN process.
In the autumn of 2023, AFYREN NEOXY's governance evolved: Jérémy
Pessiot, Deputy CEO, R&D Director and co-Founder of AFYREN,
took over as Chairman to further strengthen the links between the
parent company and its plant.
Ongoing industrial development in France
and abroad
In 2023, the teams continued to work on AFYREN's industrial
development worldwide. In Asia, AFYREN is in the process of setting
up a joint venture in Thailand with Mitr Phol, the world's 3rd
largest sugar group. The aim of the project is to set up a biobased
carboxylic acid plant near Bangkok.
In 2023, discussions focused on the constitution and governance
of the joint venture, the licensing of biotechnological know-how
and local industrial facilities. They are continuing with a view to
reaching a final agreement on the terms of the partnership.
In addition, studies continue to be carried out to increase
AFYREN's production capacity, in France and abroad. The AFYREN
NEOXY extension scenario is under assessment, offering the
possibility to capitalize on existing assets with a better control
on the financial budget.
In 2024, AFYREN's operational teams will continue this work,
while giving priority to the start-up of continuous production at
the first plant.
Concrete progress on the
ESG3 roadmap
Integral to AFYREN's value proposition and supported by
ambitious corporate governance, ESG is at the heart of AFYREN's
strategy.
Recent achievements include:
- Participation in the “Convention des Entreprises pour le
Climat” (CEC) and publication of a regenerative roadmap in early
2024. (link)
- The success of the Group's first HR survey (AFYREN Global
People Survey), reflecting team commitment with a 97% participation
rate.
- In 2023, EcoVadis, one of the world's most recognized
independent CSR assessment platforms, award AFYREN a silver medal
for its first rating exercise.
- A further increase in EthiFinance's extra-financial rating in
2024 to 83/100 (Platinum Level), underscored a higher level of ESG
maturity compared with similar companies4.
Since the end of 2023, the Company has been analyzing its ESG
performance indicators in the light of future CSRD requirements
("Gap Analysis"). A selection of extra-financial indicators will be
detailed in AFYREN's first CSR report, scheduled for publication in
the second quarter of 2024.
A solid financial
base
A stable loss thanks to disciplined cost
management
Simplified P&L (in thousands of
euros)
12/2023
12/2022
Var.
Revenue
3,379
3,456
-2%
licensing and development of industrial
know-how
1,417
1,417
-
other services provided
1,962
2,039
-4%
Operating loss
(5,928)
(5,371)
+10%
Net financial result
1,142
(166)
-
Share in loss of equity-accounted company
(net of tax)
(4,800)
(3,662)
+31%
Net loss
(9,586)
(9,200)
+4%
The Company's revenue amounted to €3.4 million in 2023,
unchanged from €3.4 million in 2022. Revenue is essentially made up
of income from intellectual property and know-how held by the
Group, unchanged compared with 2022, and income from various
contracts entered into with AFYREN NEOXY, slightly down compared
with 2022. These contracts cover various technical services
provided during the start-up of the plant.
Net operating expenses5 amounted to €9.3 million in 2023,
compared with €8.8 million in 2022, an increase of €0.5 million
mainly attributable to:
- staff costs up €0.9 million due to the increase in the number
of employees, with the average number of full-time equivalents
(FTE) increasing by 8 people
- purchases and external expenses, up €0.7 million, including
expenses related to the development of the Group’s next plants,
particularly in Thailand
These increases are partially offset by lower non-cash expenses
related to the recognition of long-term incentive plans for
managers and employees compared with 2022 (down €1.1 million).
Within operating expenses, research and development spending
recognized as expenses amount to €1.8 million in 2023, stable
compared with 2022.
Current operating result was a loss of €5.9 million.
Financial result records a €1.3 million improvement thanks to
financial income from cash and cash equivalent investment, as
financial costs are slightly down.
The share accounted for in AFYREN NEOXY's net income was a loss
of €4.8 million at end 2023, compared with a loss of €3.7 million
at end 2022. This change is mainly related to the plant's operating
expenses, in the absence of revenue. AFYREN NEOXY will recognize
revenue when acid batches are delivered to its customers from
continuous production.
Net result was a loss of €9.6 million at the end of 2023,
compared with a loss of €9.2 million at the end of 2022 reflecting
a well-controlled cost base in the pre-continuous production /
pre-revenue phase.
€50 million in cash available as of
December 31, 2023 thanks to limited cash consumption
Simplified balance sheet (in thousands
of euros)
12/2023
12/2022
Non-current financial assets
19,479
20,998
of which equity-accounted securities
14,185
16,513
Current assets
50,948
63,822
of which cash and cash equivalents
49,559
62,333
Total assets
70,427
84,821
Equity
61,799
70,978
Non-current provisions
4,213
5,885
of which loans and financial debts
3,176
3,485
Current liabilities
4,414
7,958
of which loans and financial debts
1,611
5,054
Total liabilities
70,427
84,821
As of end December 2023, AFYREN has a solid balance sheet with
Shareholder’s equity of €61.8 million, the decrease compared to end
of December 2022 coming from the net loss of the period.
Total financial debt is limited, at €4.8 million6 compared with
€8.5 million at end 2022. The decrease comes mostly from the
repayment in March 2023 of convertible bonds subscribed in March
2020.
The Group has a cash position of €49.6 million. Cash outflows
over the period totaled €12.8 million, of which €7.1 million
related to the strengthening of the AFYREN NEOXY financial position
and the repayment of the convertible bonds, against €1 million of
new loan subscription (“Prêt Innovation”). Adjusted for these
items, the underlying cash burn was €6.7 million.
Outlook and financial
goals
The anticipated delays in the start-up of AFYREN NEOXY have an
impact on the timetable for future plants, which must capitalize on
the return on experience from the first.
The Company is maintaining its medium-term operating (3 units)
and financial goals of the initial plans presented in 2021 (€150
million in annual sales and 30% EBITDA margin), but envisages a
sequence starting with a 18- to 24-month delay.
AFYREN aims to achieve the following:
- three production units with a combined installed capacity of
around 70,000 tons of acids (vs 72,000 tons) by 2028; of which at
least two in continuous production (including the existing plant
AFYREN NEOXY)7. These three units will also produce a high
added-value fertilizer, ensuring the circularity of the model;
- accumulated production revenue from the three units of more
than €150 million, at full capacity;
- a target current EBITDA margin at Group level of around 30%8,
at full capacity.
2023 FINANCIAL REPORT
AVAILABLE
The Company will make its 2023 annual financial report in French
available to the public and file it with the Autorité des marchés
financiers no later than April 12, 2024. An English version will
follow shortly.
About AFYREN
AFYREN is a French greentech company launched in 2012 to meet
the challenge of decarbonizing industrial supplies. Its natural,
innovative and proprietary fermentation technology valorizes local
biomass from non-food agricultural co-products, replacing
petro-sourced ingredients usually used in many product
formulations. AFYREN's 100% biobased, low-carbon and sustainable
solutions can meet decarbonization challenges in a wide variety of
strategic sectors: human and animal nutrition, flavors and
fragrances, life sciences and materials, and lubricants and
technical fluids. AFYREN's plug-and-play, circular technology
combines sustainability and competitiveness, with no need for
manufacturers to change their processes.
The Group's first French plant, AFYREN NEOXY, a joint venture
with Bpifrance's SPI fund, is located in the Grand-Est region of
France, in Saint Avold, serving mainly the European market.
AFYREN is also pursuing a project in Thailand with a world
leader in the sugar industry, and is developing its presence in the
Americas, following up on distribution agreements it has already
signed.
At the end of 2023, AFYREN employed about 120 people in Lyon,
Clermont-Ferrand and Carling Saint-Avold. The company invests 20%
of its annual budget in R&D to further develop its sustainable
solutions.
AFYREN has been listed on the Euronext Growth® exchange in Paris
since 2021 (ISIN code: FR0014005AC9, mnemonic: ALAFY).
Find out more: afyren.com
Financial calendar
Event – publication
Dates
FY 2023 Financial report (in French)
April 12, 2024 at the latest
Shareholder’s meeting
June 19, 2024, in Lyon
HY 2024 results
September 30, 2024
Appendix
1. Income statement
(in thousands of euros)
12/2023
12/2022
Revenue
3,379
3,456
Other income
527
460
Purchases and external expenses
(3,053)
(2,396)
Payroll costs
(5,835)
(6,104)
Depreciation of fixed assets and rights of
use
(814)
(629)
Other expenses
(132)
(158)
Current operating income
(5,928)
(5,371)
Non-current operating income
-
-
Operating income
(5,928)
(5,371)
Financial income
1,439
179
Financial expenses
(297)
(345)
Net financial income
1,142
(166)
Share in income of equity-accounted
company (net of tax)
(4,800)
(3,662)
Income before tax
(9,586)
(9,200)
Income tax
-
-
Net income for the year
(9,586)
(9,200)
Earnings per share
Basic earnings per share (in euros)
(0.37)
(036)
Diluted earnings per share (in euros)
(0.37)
(0.36)
2. Balance sheet
(in thousands of euros)
12/2023
12/2022
Intangible assets
3,333
3,621
Property, plant and equipment
338
358
Rights of use
441
446
Equity-accounted securities
14,185
16,513
Non-current financial assets
1,182
62
Non-current assets
19,479
20,998
Trade receivables
466
788
Current financial assets
99
71
Other current assets
824
630
Cash and cash equivalents
49,559
62,333
Current assets
50,948
63,822
Total assets
70,427
84,821
Share capital
520
517
Issue premiums
85,264
85,089
Reserves
(4,679)
399
Retained earnings
(9,720)
(5,828)
Net income for the year
(9,586)
(9,200)
Equity attributable to the owners of
the Company
61,799
70,977
Non-current borrowings and financial
liabilities
2,952
3,261
Non-current lease liabilities
224
224
Defined benefit liabilities
61
67
Non-current provisions
14
14
Non-current deferred income (customer
contract liabilities)
0
1,321
Non-current deferred income (grant)
962
997
Non-current liabilities
4,213
5,885
Current borrowings and financial
liabilities
1,402
4,867
Current lease liabilities
208
187
Trade payables
388
520
Current deferred income (customer contract
liabilities)
1,321
1,319
Other current liabilities
1,095
1,066
Current liabilities
4,414
7,958
Total liabilities
8,628
13,843
Total equity and liabilities
70,427
84,821
3. Cash flow statement
(simplified)
(in thousands of euros)
12/2023
12/2022
Net income for the year
(9,586)
(9,200)
Total elimination of expenses and
income with no cash impact
5,751
6 876
Total cash flow
(3,835)
(2,324)
Total changes in working
capital
(1,206)
(973)
Net cash from operating
activities
(5,041)
(3,297)
Acquisition of PPE and intangible assets,
net of disposals
(416)
(221)
Capitalised development expenses
(131)
(245)
Investment grants (incl. CIR offsetting
capitalised expenses)
(34)
7
Subscription to AFYREN NEOXY capital
increase
(2,000)
-
Interest received
1,407
179
Increase in non-current financial
assets
(1,503)
(34)
Increase in current financial assets
(liquidity contract)
(400)
(47)
Net cash used in investing
activities
(3,078)
(361)
Capital increase
178
-
Purchase / sales of treasury share
(419)
-
Proceeds from new borrowings and financial
liabilities
1,000
127
Repayment of borrowings and financial
liabilities
(1,361)
(779)
Repayment of convertible bonds
(3,567)
-
Payment of lease liabilities
(209)
(142)
Interest paid on borrowings and financial
liabilities
(78)
(162)
Interest paid on bonds
(178)
(178)
Interest paid on lease liabilities
(21)
(4)
Net cash used in financing
activities
(4,655)
(1,138)
Net change in cash and cash
equivalents
(12,774)
(4,796)
Cash and cash equivalents as of January
1st
62,333
67,128
Cash and cash equivalents as of Dec
31
49,559
62,333
1 Current EBITDA from production: corresponding to current
operating income adjusted for depreciation, amortization and net
impairment of property, plant and equipment and intangible assets
and the royalties for the remuneration of a technology licence
granted by AFYREN. 2 Circular Bio-based Europe Joint Undertaking 3
Environmental, social and governance criteria 4 In terms of
employee numbers and sector 5 Net of other income, mainly operating
grants including in particular the research tax credit 6 Including
lease liabilities, which represented €0.4 million at the end of
December 2023 7 The commissioning sequence may vary depending on
the choice between extending NEOXY or moving to a new site. 8
Current EBITDA margin is defined at Company level.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240401630178/en/
AFYREN Director for ESG, Communications and Public
Affairs Caroline Petigny caroline.petigny@afyren.com
Investor Relations Mark Reinhard
investisseurs@afyren.com
NewCap Investor Relations Théo Martin / Mathilde
Bohin Tel: 01 44 71 94 94 afyren@newcap.eu
NewCap Media Relations Nicolas Mérigeau / Gaëlle
Fromaigeat Tel: 01 44 71 94 98 afyren@newcap.eu International
Media relations Bogert-Magnier Communications James Connell +33
6 2152 1755 jim@bogert-magnier.com
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