• Full-year 2023 revenues are €8.1 million. Several orders that we anticipated to receive and deliver in 2023, have been delayed by the respective customers, but are still part of our pipeline for delivery in 2024. Our outlook on total revenues for 2024 is in excess of €16 million, amongst others supported by a growing number of successful pilot projects and concrete project opportunities from our growing OEM customer base. Gross margins remain very strong at 59.6% in 2023, an increase compared to 57.2% in 2022, underpinning our strong technology position.
• NX Filtration is experiencing an approximately 1.5 years delay in the roll-out of its original business plan, that is caused by longer lead times to convert pilot projects into large full-scale projects. These delays were further impacted by the current financing environment that negatively impacts our end-customers' capex plans, as well as the ability and willingness of OEMs to build-up or maintain stock of our modules in anticipation of upcoming projects.
• We expect our current cash position (€50 million at year-end 2023) to be sufficient to fully finance the construction of our new factory, and our operations in 2024. We have taken cost control measures without impacting our growth ambitions. To implement our growth strategy for the longer-term, we are exploring a range of possibilities to increase our financial flexibility, including asset-based financing on our €58m fixed asset base as per December 2023.
• All underlying business drivers continue to develop in a very favorable direction. In conjunction with the opening of our factory by mid-2024, we will organize a Capital Markets Day to provide an update of market developments and the roll-out of our business plan.
• We see stronger than ever market trends to address global water issues with many countries to implement regulations and investment plans.
• We are making major steps forward with large global OEMs (including Veolia, Suez, Nijhuis Saur, and Aqualia) that further intensified their pilot programs, entered into cooperation agreements with us, and started offering our products in full-scale projects.
• Our strong technology position is underscored by a continuation of repeat orders from existing partners across Europe (e.g. Nijhuis Saur Industries, Ekopak and Envirogen), the Americas (e.g. Delco, PepsiCo, Vetec, Evoqua and International RO) and Asia (e.g. Hydroflux and PT Bayu Surya Bakti Konstruksi).
• We are fully on-track with our new factory: we have gained early-access to the building in December 2023 to frontload the installation of equipment ahead of schedule, and completion of the factory and start of commissioning is planned for the end of Q1 2024.
Jeroen Pynenburg, CEO of NX Filtration, states:
"Despite the delay of approximately 1.5 years in our business plan, I remain highly confident that we are on the right track of our future growth path. We remain closely collaborating with our customers and continue to be positive on the conversion of our pilots. Our major opportunities that we had planned to deliver in 2023 are still part of our pipeline today. In fact, the underlying drivers for our business are stronger than ever: the market is developing very favorably, our pipeline continues to grow, and we experience great traction with major customers that are clearly entering the next stage of roll-out of our technology and are increasingly developing and running their own pilot systems around our technology. We will further elaborate on these trends and the roll-out of our business plan on a Capital Markets Day that we plan to host mid-2024, in conjunction with the opening of our factory.
In the context of the delayed roll-out of our business plan we have taken cost control measures without impacting our medium and long-term growth ambitions. For example, upon the completion of our new factory, which is fully on schedule, we will be moving all our existing operations into this new facility. We believe our current cash position is sufficient to finance the construction of our new factory and our operations in 2024. To implement our growth strategy for the longer-term, we are currently exploring a range of possibilities to increase our financial flexibility, including financing on our asset base that is further growing with the completion of our new factory.
NX Filtration is globally active in one of the major challenges of our planet, the availability of clean and affordable water. With our breakthrough membrane technology we can remove contaminations, such as antibiotics, PFAS, viruses and bacteria from polluted water. Every day we are working to help our partners to improve water quality and make clean water available to millions of people worldwide. With our membrane module sales in 2023 alone, we enabled the production of 254 billion liter of clean water.
We are well prepared for 2024, for which we have an outlook on total revenues in excess of €16 million, amongst others supported by a growing number of successful pilot projects and concrete project opportunities from our growing OEM customer base."
Press release:
https://nxfiltration.com/investors/investor-news/nx-filtration-reports-2023-results/
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