Betolar Plc
Company Release
25 August 2023 at 8:30 a.m. EEST
Betolar Plc Half-Year Financial Review, 1 January–30 June 2023 (unaudited)
Betolar Plc Half-Year Financial Review 1–6/2023: Strategy implementation continued - successes in development work
This is a summary of the half-year report for January-June 2023, which is attached in full to this release and can be downloaded from the company's website at: https://www.betolar.com/investors
April-June 2023 in brief
January-June 2023 in brief
Main events during the period
Main events after the period
Betolar’s consolidated financial statements for the period that ended 30 June 2023 have been prepared in accordance with the International Financial Reporting Standards (IFRS) and International Committee (IFRIC) in force on 30 June 2023.
The figures in brackets in this report refer to the comparison period, i.e., the same period in 2022, unless stated otherwise. The figures for the comparison period are based on the audited annual financial statements. All figures are in accordance with IFRS. Betolar transitioned to IFRS reporting in 2022. The half-year information published in the comparison period for the period 1-6/2022 has been restated in this report to correspond to IFRS. More information on the IFRS transition can be found in the transition release published on 21.12.2022.
We published an updated strategy in March and continued to implement our growth strategy in selected markets in the first half of the year. With precast products, we made new commercial openings in the eastern part of India and in the Middle East. In Europe, we took significant steps in the development of construction elements and research and development activities progressed as planned in the first half of the year.
Despite the exceptionally challenging situation in the construction market, piloting has continued. The slowing down of the construction market gives companies interest in product development the opportunity to pilot and create the next phase of growth capabilities, in particular related to the green transition. We see the downturn in the construction sector as an opportunity for Betolar.
Turnover for January-June grew compared to the previous year. As expected, the operating profit was negative, as we are investing strongly in growth, commercialisation and R&D in line with our strategy. In the precast products segment, we have gained field experience through numerous customers and pilots. These experiences have enabled us to develop a new geopolymer formulation and dosing that further improves product quality attributes such as long-term durability and salt-freeze resistance.
In line with our strategy, we have in the beginning of the year started to shift the development focus from pre-cast concrete products towards higher value-added structural products, with the development of low carbon hollow-core slabs being a key project. In June, we announced with Consolis Parma the promising results of our co-development work, with the aim of moving next to the production phase.
In the Waste upcycling -segment, we made particular progress in the productisation of analcime sands. The battery industry is a major driver, as side stream owners in the battery industry are increasingly seeking solutions to utilise side streams. With the strategy update, Betolar’s activities will focus on ensuring access to side streams. We are also working more actively to influence the drivers that determine the growth of the geopolymer market. We therefore started the development of a Waste upcycling service package for side stream owners.
One major policy theme in the EU is the role of regulation and procurement in the circular economy. Current concrete standards in many countries require concrete to be made partly with traditional cement, even though geopolymers can bring even better environmental or technical performance. We are working with cities and international concrete associations to promote the uptake of low-carbon and sustainable circular economy materials in construction.
A healthy organisational culture is essential for us on our growth path. In the spring, we invested in diversity and equality training for our staff and launched our Code of Conduct, which guides every employee and stakeholder to act responsibly and ethically.
| (EUR thousand, unless otherwise specified) | 4–6 2023 |
4–6 2022 |
1–6 2023 |
1–6 2022 |
1–12 20224 |
| Financial indicators | |||||
| Net sales | 88 | 7 | 131 | 21 | 287 |
| Gross margin1 | 36 | -5 | 121 | ||
| EBITDA1,2 | -3,062 | -2,537 | -6,186 | -4,517 | -9,988 |
| Operating profit (loss) | -7,075 | -4,994 | -11,518 | ||
| Earnings before interest and tax | -7,051 | -5,451 | -11,873 | ||
| Profit (loss) for the financial period | -7,031 | -5,438 | -11,844 | ||
| Earnings per share, basic and diluted, EUR1,3 | -0.36 | -0.28 | -0.61 | ||
| Cash and cash equivalents and short-term fund investments (at the end of the period)1,2 | 18,514 | 33,590 | 18,514 | 33,590 | 26,624 |
| Operational indicators | |||||
| Personnel (average number during the financial period) | 63 | 46 | 64 | 49 | 51 |
| Number of pilot customer1,2 | 13 | 9 | 18 | 14 | 25 |
Betolar's financial reports are available on the company's website at www.betolar.com/investors
Betolar will host a live webcast in English for investors and media on 25 August 2023 at 10.00 a.m. Finnish time. The webcast can be followed at https://betolar.videosync.fi/q2-2023-result/register
During the presentation, CEO & President Riku Kytömäki and CFO Riikka Ylikoski will present Betolar's half-year report and other topical issues. A recording of the event and a corresponding presentation in English will be available on Betolar's investor website later in the day.
Betolar Plc
Riku Kytömäki, President & CEO, Betolar Plc, riku.kytomaki@betolar.com, +358 50 511 8288
Riikka Ylikoski, CFO, Betolar Plc, riikka.ylikoski@betolar.com, +358 40 828 2632
Certified Adviser:
Aktia Alexander Corporate Finance Oy, +358 50 520 4098
Betolar Plc is a Finnish materials technology company that offers the production of sustainable and low-carbon concrete with the Geoprime solution. The solution converts industrial side streams into a cement substitute. Betolar's artificial intelligence innovation can significantly reduce CO2 emissions compared to traditional cement-based concrete production by optimizing existing manufacturing processes, supporting solution development with advanced analytics, and creating global markets for side streams. Betolar's mission is to help reduce CO2 emissions and the use of virgin resources.
Betolar was founded in 2016 and is domiciled in Kannonkoski, Finland. Betolar is listed on the Nasdaq First North Growth Market.
Read more: www.betolar.com