Aquaporin (AQP) H2 2024 earnings summary

Executive summary

• Achieved DKK 40.6 million in revenue for 2024, a 32% decrease year-over-year, mainly due to lower sales in Residential Drinking Water and a delayed forward osmosis project.

• Industrial Water segment grew 192% year-over-year, driven by product launches and new key accounts, especially in China.

• Implemented significant cost reductions, resulting in improved EBIT before special items (loss of DKK 83 million, better than revised guidance).

• Raised DKK 172–172.4 million through a rights issue, strengthening the cash position and supporting future growth.

• Advanced technology with the launch of Aquaporin Inside Generation 2 and new patents, enhancing product performance and scalability.

• Remuneration policy supported strategic goals with a mix of fixed and variable pay; no deviations in 2024.

• Extraordinary, one-off bonuses were awarded to the CEO, CFO, and COO for the rights issue and onboarding a new contract manufacturer.

Financial highlights

• Revenue for 2024: DKK 40.6 million, down 32% from 2023.

• EBIT before special items: loss of DKK 83 million, improved from guidance of DKK 90 million loss.

• EBITDA before special items was DKK -63.7 million.

• Net loss for the year: DKK 85.3 million.

• Gross profit for 2024 nearly matched 2023 despite lower revenue, due to better product mix and improved supplier arrangements.

• Cash position at year-end: DKK 77.3 million, bolstered by DKK 144.6 million net proceeds from the rights issue.

• Inventory and IP write-downs totaled DKK 8.2 million.

• Average number of FTEs was 76, with average pay per employee at DKK 619,000.

Outlook and guidance

• 2025 revenue guidance: DKK 60–80 million, with expected contributions from all three business lines.

• EBITDA before special items for 2025 expected to be a loss of DKK 45–55 million, improving from 2024's negative DKK 63.7 million.

• Growth anticipated from existing key accounts (Philips, Gallo, Brenntag, AquaShield) and onboarding of new high-potential accounts in the U.S. and China.

• Continued focus on cost control and margin improvement, with no plans for new share emissions in 2025.

• Business performance for incentives was significantly lower than initial expectations and external guidance, particularly for revenue and EBIT.