Avsalt Group (AVSALT) Q2 2024 earnings summary

Executive summary

• Avsalt Group AB is commercializing a patented, scalable water desalination technology targeting global markets with significant need for clean water, especially for agriculture and industry.

• The company is in a commercialization phase, with pilot projects planned and a focus on building organizational capacity and production capabilities.

• No revenue was generated in H1 2024; the company is pre-revenue and focused on R&D and pilot deployments.

Financial highlights

• Net sales for Q2 and H1 2024 were 0 TSEK, unchanged from the previous year.

• EBIT for Q2 2024 was -5,182 TSEK (Q2 2023: -1,345 TSEK); H1 2024 EBIT was -7,661 TSEK (H1 2023: -2,870 TSEK), mainly due to increased external consulting costs.

• Result before tax for Q2 2024 was -5,182 TSEK (Q2 2023: -1,347 TSEK); H1 2024 was -7,661 TSEK (H1 2023: -2,872 TSEK).

• Cash flow from operations in H1 2024 was -3,137 TSEK (H1 2023: -3,087 TSEK); cash and cash equivalents at June 30, 2024, were 1,216 TSEK (June 30, 2023: 1,741 TSEK).

• Investments in intangible and tangible assets in H1 2024 totaled 279 TSEK (H1 2023: 743 TSEK), related to capitalized development costs.

Outlook and guidance

• Application for re-listing on NGM Nordic SME is under review; the company is preparing for pilot projects and expects to focus on critical water purification applications, especially irrigation.

• The company secured a 3.0 MSEK loan facility from an existing shareholder to cover liquidity needs for autumn 2024 and is evaluating long-term financing options.