Betolar (BETOLAR) Q3 2024 earnings summary

Executive summary

• Net sales for January–September 2024 increased 85% year-over-year to EUR 551 thousand, with Q3 sales up 65% to EUR 276 thousand compared to the same quarter last year.

• Entered partnerships with Latitude 66 and Norge Mineraler to develop sustainable mining solutions in Finland and Norway, and signed a commercial agreement with Hycamite to explore carbon nanofiber use in products.

• Completed a direct share issue, raising EUR 2.4 million, and appointed a new CFO, completing the management team.

• Strategic focus shifted toward sidestreams, mining, and metals industries, with notable progress in R&D, including new patents and expanded AI-based sidestream analysis services.

• Geoprime-based products passed durability tests, meeting commercial standards.

Financial highlights

• Net sales for Q3 2024: EUR 276 thousand (EUR 167 thousand in Q3 2023); for 1–9/2024: EUR 551 thousand (EUR 298 thousand in 1–9/2023).

• EBITDA for Q3 2024: EUR -974 thousand (EUR -2,625 thousand); for 1–9/2024: EUR -4,623 thousand (EUR -8,811 thousand), improved by EUR 1.7 million year-over-year due to cost-saving actions.

• Cash and cash equivalents at period end were EUR 10.7 million, supported by the share issue.

• Order intake for Q3 2024 was EUR 237 thousand, similar to last year, with fewer but higher-value projects.

• Non-recurring costs related to change negotiations and management changes totaled EUR 549 thousand in 1–9/2024.

Outlook and guidance

• Cost-saving measures largely completed, targeting annual savings of EUR 5 million and a fresh cost base for 2025.

• Continued focus on mining, metals, and sidestreams, with new pilot projects and commercial agreements expected to drive growth.

• Commercialization of CEM III and cement-free shotcrete for Outokumpu targeted for next year.

• Public financing remains available for R&D, with undrawn grants and loans supporting ongoing projects.

• Market recovery in construction sector anticipated to drive future sales.