Aquaporin Q1 2024 Trading Statement - maintains guidance with strong orderbook
Aquaporin A/S, Nymøllevej 78, DK-2800 Kongens Lyngby, aquaporin.com, Company registration no.: DK28315694
Company announcement
No. 15/2024
Copenhagen, Denmark, May 23, 2024 – Aquaporin A/S (ticker: AQP) (“Aquaporin” or the “Company”), an innovative water technology company dedicated to rethinking water filtration with biotechnology, today announces the Company's Q1 2024 Trading Statement for the period January 1-March 31, 2024.
“We have a strong orderbook in place for 2024 and have good visibility of the expected growth trajectory for the rest of the year and see a clear path to reaching our financial guidance as we continue to see significant repeat orders and expand geographically,” says Matt Boczkowski, Chief Executive Officer at Aquaporin.
“We expect a steep increase in revenue in the coming quarters as we continue our growth momentum as we maintain strong cost discipline with a view to reaching profitability in the coming two to three years. The quarterly result is in line with Management’s expectations,” says Klaus Juhl Wulff, Chief Financial Officer at Aquaporin.
Financial highlights as of March 31, 2024
- In Q1 2024, revenue amounted to DKK 6.2 million (DKK 10.9 million for the same period in 2023), primarily driven by revenue from respectively Industrial Water Reverse Osmosis and Forward Osmosis Market Development. In Drinking Water, revenue will pick up in Q2 2024.
- EBIT (before special items) was a loss of DKK 23.8 million in Q1 2024 (a loss of DKK 23.7 million for the same period in 2023).
- Gross profit margin for the period was in line with guidance.
- As of March 31, 2024, cash and cash equivalents were DKK 2 million. The Company completed a capital increase through a Rights Issue in the amount of DKK 172.4 million in April 2024.
- The Company maintains the financial guidance for the full year 2024: Revenue of DKK 90-110 million; gross profit of 30-35%; EBIT (before special items) a loss of DKK 85-75 million.
Business highlights Q1 2024
- Announced changes in Executive Management with Torsten Høybye Bak Regueira being appointed Chief Technology Officer and Peter Holme Jensen stepping down as Chief Innovation Officer to become a member of the Board of Directors.
- Order backlog and visibility further strengthened in Q1.
- Achieved development milestone payment with E. & J. Gallo Winery, continuing our successful Joint Development Project.
- Joined EU-funded project, KitNewCare, which aims to enhance kidney healthcare across Europe. With Aquaporin’s core technology and energy-efficient filter membranes, the ambition is to make dialysis more sustainable.
- Entered into EU-funded project, RESURGENCE, with partners from 11 countries, to explore synergies between urban water treatment and industrial operations through innovative solutions.
Commentary Q1 2024
The first quarter of 2024 was focused on preparing the Rights Issue, which was successfully concluded at the end of April, raising gross proceeds of DKK 172.4 million. With this capital increase, Aquaporin has secured the path the profitability, which we expect to reach within two to three years.
We have maintained strong cost control, while revenue numbers are lower compared to the same period in 2023. This is in line with Management’s expectations for 2024 as the coming quarters are expected to show significant revenue growth, enabling us to continue on our revenue growth trajectory.
The Company implemented changes to its Executive Management with the appointment of Torsten Høybye Bak Regueira as Chief Technology Officer. Torsten will help ensure a continuedly strong R&D department, driving the development of our core technology and Aquaporin Inside™ coating. In addition, Peter Holme Jensen stepped down as Chief Innovation Officer and was subsequently elected as a member of our Board of Directors at the Annual General Meeting in April 2024. With his election, Aquaporin has secured additional water industry and biotechnology experience, further strengthening our Board of Directors.
For further information, please contact:
Matt Boczkowski, Chief Executive Officer
Klaus Juhl Wulff, Chief Financial Officer
+45 53 55 55 19, investorrelations@aquaporin.com
About Aquaporin A/S
Aquaporin is an innovative water technology company with operations in Denmark (HQ), Singapore, Turkey, the United States, and China. We are committed to rethinking water filtration with biotechnology to solve global water challenges. By combining three disciplines from the world of natural sciences: biology, chemistry, and physics, we have created the unique, nature-inspired Aquaporin Inside® technology which we embed into all our membranes and solutions. Our technology is based on Nobel Prize-winning research and is used to clean and reuse water in industries, in our homes, and even by NASA in space. We work with customers and partners around the globe to responsibly treat industrial wastewater, concentrate food and beverage products in a natural way, and enhance drinking water quality and accessibility.
Forward-looking statements
Matters discussed in this company announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and that can be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “estimate”, “will”, “may”, “continue”, “should”, and similar expressions, as well as other statements regarding future events or prospects. Specifically, this company announcement includes information with respect to projections, estimates, and targets that also constitute forward-looking statements. The forward-looking statements in this company announcement are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies, and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, and other important factors include, among others: Limited experience in commercialization of the Company’s products, failure to successfully implement strategies, dependence on third parties for manufacturing certain product components and the supply of certain raw materials, manufacturing disruptions, strategic collaboration, protection of the Company’s intellectual property rights and other risks disclosed in Aquaporin’s annual reports, prospectuses and company announcements. Such risks, uncertainties, contingencies, and other important factors could cause actual events to differ materially from the expectations, projections, estimates, and targets expressed or implied in this company announcement by such forward-looking statements. The information, opinions, and forward-looking statements contained in this company announcement speak only as at its date and are subject to change without notice. Aquaporin expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law.
