Cinis Fertilizer (CINIS) Q2 2024 earnings summary

Executive summary

• Achieved continuous production of environmentally friendly potassium sulfate at Örnsköldsvik, with first deliveries to Van Iperen International completed.

• Ramp-up faced minor mechanical issues and a three-week power outage, delaying cash flow positivity.

• Production now meets high-quality specifications, and ramp-up to full capacity is ongoing.

• Growth plan targets six facilities and 1.5 million tons annual capacity by 2030.

Financial highlights

• Net sales for Jan–Jun 2024: SEK 0.0 million (0.0); no commercial revenue yet.

• Operating loss Jan–Jun 2024: SEK -34.2 million (-14.2); Q2: SEK -20.5 million (-8.5).

• Net loss after financial items Jan–Jun 2024: SEK -36.4 million (-13.2); Q2: SEK -22.3 million (-8.5).

• Cash flow from operating activities Jan–Jun 2024: SEK -44.8 million (19.6); Q2: SEK -38.6 million (19.7).

• Investments in tangible assets Jan–Jun 2024: SEK 165.1 million (215.1).

• Liquidity at period end: SEK 93.0 million (208.0), including SEK 66 million in credit facilities.

Outlook and guidance

• Full ramp-up of Örnsköldsvik plant expected to reach 100,000 tons annual capacity, with 85% availability.

• EBITDA margin target above 25% will not be reached in 2024 due to Northvolt supply delays and extra costs of SEK 25 million.

• Hopkinsville, USA plant postponed to 2026; Skellefteå, Sweden plant timeline revised.

• Long-term targets for growth and profitability remain unchanged.