Pyrum Innovations (PYRUM) Q2 2024 earnings summary

Executive summary

• Achieved significant operational milestones in H1 2024, including the ramp-up of new production lines and the development of a dual energy system for tire recycling plants.

• Serial production plant in Dillingen/Saar started up, with TAD 2 and TAD 3 running stably at 80% throughput; full 100% capacity tests planned for October 2024.

• Secured a landmark 10-year offtake agreement with Continental for recovered carbon black (RCB), covering at least two plants, and received interest from other tire manufacturers.

• Expanded project pipeline to nine real projects across six European countries, with strong partners and advanced permitting stages.

• BASF loan tranches disbursed to support plant construction; further equity financing under consideration.

Financial highlights

• H1 2024 sales reached EUR 708,000, up 41% year-over-year, but still below target due to limited throughput and delayed engineering sales.

• EBITDA was -EUR 3.2 million; net income was -EUR 4.7 million, slightly better than expected, but net loss widened year-over-year due to higher personnel and interest expenses.

• Total output decreased to EUR 4.5 million from EUR 8.1 million, mainly due to completion of Dillingen expansion and transition to Perl-Besch.

• Equity at EUR 70.6 million, equity ratio at 29.8%, down from 43.9% at year-end 2023.

• Cash and cash equivalents increased to EUR 9.29 million, mainly due to BASF loan disbursements.

Outlook and guidance

• Full-year 2024 revenue guidance lowered to EUR 1.9–2.4 million due to delayed plant sales and lower-than-expected RCB production in H1.

• Expected earnings before tax revised to -EUR 10 to -12 million for 2024, an improvement over previous guidance.

• Total output guidance reduced to EUR 10 million for 2024, pending plant purchase contract signings.

• Major investments for customer plants postponed to 2025 due to approval delays.

• RCB output for 2025 targeted at up to 4,000 tons, with ramp-up in H2 2025 after new mill and pelletizer installation.