Cinis Fertilizer (CINIS) Q1 2025 earnings summary

Executive summary

• Achieved net sales of SEK 82.6 million in Q1 2025, with potassium sulfate now sold in over 40 countries, marking the first quarter of commercial deliveries.

• Focused on ramping up production at the Örnsköldsvik plant, with March output at 5,000 tons and annualized rate of 60,000 tons.

• Announced a multi-stage capital raise in April, bringing in new industry-expert shareholders and strengthening liquidity.

• Entered a collaboration with Wa3rm for potential financing of future production facilities.

Financial highlights

• Net sales: SEK 82.6 million (no comparable sales in Q1 2024).

• Operating loss: SEK -19.5 million (Q1 2024: -13.8 million), impacted by startup costs and market price pressure.

• Net loss after financial items: SEK -36.9 million (Q1 2024: -14.2 million).

• Cash flow from operating activities: SEK -20.4 million (Q1 2024: -6.2 million).

• Equity/assets ratio: 23.0% (Q1 2024: 47.6%).

Outlook and guidance

• Targeting production rate of 90,000 tons/year in Q3 2025 and full capacity of 100,000 tons/year in Q4 2025.

• Ongoing initiatives to improve profitability through logistics optimization, input cost reduction, and price increases.

• Long-term goal: six production facilities and 1.5 million tons annual capacity by 2030.

• Financial target: annual EBITDA margin above 25% and net debt/EBITDA not exceeding 2.5x.