Betolar Plc's Financial Statements Release 1-12/2024: Focus on the mining industry is paying off

Betolar Plc

Company Release

5 February 2025 at 8:30 A.M. EET

Betolar Plc's Financial Statements Release for 1 January–31 December 2024 (unaudited)

Betolar Plc's Financial Statements Release 1-12/2024: Focus on the mining industry is paying off

This is a summary of the 2024 Financial Statements Release, which is in its entirety attached to this release and can be downloaded from the company’s website at https://www.betolar.com/investors

October–December 2024 in brief

• Net sales amounted to EUR 210 thousand (217 thousand)
• EBITDA amounted to EUR -1,193 thousand (-2,370 thousand)
• Cash and cash equivalents and short-term fund investments at the end of the period amounted to EUR 8,987 thousand (14,315 thousand)
• Order intake amounted to EUR 271 thousand (213 thousand)
• The number of new NRE projects was 5 (5)
• The number of new pilot customers was 1 (1)
• The average number of personnel during the period was 37 (57)

January–December 2024 in brief

• Net sales amounted to EUR 762 thousand (515 thousand)
• Gross margin amounted to EUR 564 thousand (340 thousand)
• EBITDA amounted to EUR -5,816 thousand (-11,181 thousand)
• Operating profit (loss) was EUR -7,964 thousand (-13,260 thousand)
• Profit for the financial period amounted to EUR -7,732 thousand (-13,153 thousand)
• Earnings per share were EUR -0.36 (EUR -0.67)
• Cash and cash equivalents and short-term fund investments at the end of the period amounted to EUR 8,987 thousand (14,315 thousand)
• Order intake amounted to EUR 1,003 thousand (607 thousand)
• The number of new NRE projects was 11 (9)
• The number of new pilot customers was 5 (24)
• The average number of personnel during the period was 46 (60)

Key events in the 2024 financial period

• Betolar's new low-carbon shotcrete solution into production use at the beginning of 2025 at Outokumpu's Kemi mine (12/2024).
• Betolar and Balsam Laboratory researching and developing a method for utilizing fine crusher dust from tunnel drilling in tunnel construction (12/2024).
• Saudi Readymix and Betolar cooperated on low-carbon concrete solutions in Saudi Arabia (11/2024).
• Betolar and Latitude 66 Limited signed a memorandum of understanding to develop sustainable solutions (9/2024).
• Betolar and Norge Mineraler signed a memorandum of understanding to develop sustainable mining solutions (7/2024).
• Betolar acquired MetalCirc’s patent regarding the treatment of waste combustion ashes (8/2024).
• Betolar was granted a patent enabling the large-scale use of sidestreams in road, soil, and ground construction (7/2024).
• Betolar was granted a patent in Finland for a CEM III/B accelerator solution (8/2024).
• Betolar successfully completed a direct share issue of 1,960,688 new shares, raising EUR 2.35 million (8/2024).
• Betolar updated its medium and long-term business and financial targets (2/2024).
• Betolar conducted change negotiations as part of focusing on solutions for sidestreams and the mining and metals industries. As a result of the change negotiations, the organizational structure was changed, and operations were restructured and made more efficient. A total of 13 positions were terminated (6/2024).
• Changes in the management team: The company’s CEO Riku Kytömäki, CFO Riikka Ylikoski, CHRO Antti Uski, and CTO Jarno Poskela left the company, while Ville Voipio left the management team for new responsibilities in construction and marketing. Tuija Kalpala was appointed as Betolar’s new CEO on 22 April 2024, Soila Söderström was invited to join the management team on 29 May 2024, and Mikko Wirkkala started as new CFO on 3 September 2024 (4/2024-6/2024).

Key events after financial period

• The world’s lowest-emission hollow core slabs developed by Betolar and Consolis Parma enter the production phase (1/2025).
• Betolar studied the circular economy use of ashes generated from Alva-yhtiöt energy production using the SidePrime analysis service (2/2025).
• Betolar updates its financial targets (2/2025).

Betolar's consolidated financial statements for the year that ended 31 December 2024 have been prepared in accordance with the International Financial Reporting Standards (IFRS) and Interpretations Committee (IFRIC) in force on 31 December 2024.

The figures in brackets in this report refer to the comparison period, i.e. the same period in 2023, unless otherwise specified. The figures for the comparison period are based on the audited financial statements. All figures are according to IFRS accounting standards.

The Board of Directors’ proposal on the use of distributable unrestricted shareholders’ equity

The Board of Directors proposes that no dividend be distributed for the financial period 1 January–31 December 2024 and that the loss for the financial period be carried over under retained earnings.

2025 Guidance

Net sales for 2025 is expected to increase compared to the previous year.

CEO Tuija Kalpala comments on the financial period 2024

The most significant successes of 2024 are related in particular to customer projects. These include the completion of the CEM III shotcrete development for Outokumpu, the approval by the Concrete Association and the achievement of CE marking readiness for the world's lowest carbon cavity tiles developed by Betolar for Consolis Parma. In addition, new Betolar innovations for which patents have been filed, such as the use of various sidestreams and inventions for metal fractioning, were significant achievements in addition to product development breakthroughs, such as passing the challenging double-sided salt freeze thaw tests for concrete products.

On the mining side, the market showed strong interest in Betolar's low-carbon and waste-free solutions. We started commercial discussions with a number of different mining companies in the second half of the year and signed several memoranda of understanding with companies such as Norge Minerals and Latitude 66 Ltd. This shows that there is significant demand in the mining sector for Betolar's new innovative and low-carbon solutions.

The market situation, particularly in the construction sector, continued to be challenging.  Although several successful customer pilot projects were completed, many players in the sector took a time-out in bringing low-carbon products to market. However, interest in low-carbon concrete products remained high.  

2024 was a year of significant change for Betolar. The company's strategy was refocused on the mining, metals and sidestream business segments. This led to a major organizational change and the start of change negotiations for the Finnish workforce in late spring. There were also personnel changes in the company's management and the size of the management team was reduced from seven to three people. Change is always a challenge and requires stretching and commitment from the whole organization. Towards the end of the year, however, these changes started to produce the desired results.

I want to thank all Betolar staff for their excellent work towards new innovations and a low-carbon future. I also thank all our customers, partners and stakeholders for their trust and good cooperation.

Key figures

Key indicators for the Group

1. Betolar uses certain indicators (gross margin, EBITDA, earnings per share, cash and cash equivalents and short-term fund investments, order intake, number of new NRE projects and number of pilot customers) as half-yearly indicators of operational profitability and business performance. The definitions and calculation formulas of these indicators can be found in the appendix to the report.
2. Betolar uses certain indicators (EBITDA, cash and cash equivalents and short-term fund investments, order intake, number of new NRE projects and number of pilot customers) as quarterly indicators of operational profitability and business performance. The definitions and calculation formulas of these indicators can be found in the appendix to the report.
3. The number of shares used in the calculation of earnings per share at the end of the period and average number of shares during the period with comparative data: 31.12.2024: 21,567,570 shares, 1-12/2024: 20,587,226 shares, 7-12/2024: 20,587,226 shares, 31.12.2023: 19,606,882 shares, 1-12/2023: 19,569,320 shares, 7-12/2023: 19,579,236 shares.

Annual General Meeting

The Annual General Meeting of Betolar Plc is planned to be held on 27 March 2025. The notice of the Annual General Meeting will be published later. 

Annual report and financial reporting

Betolar will publish the following financial reports in 2025:

• 24 April:           Q1 Business Review
• 18 July:            Half-yearly Review
• 28 October:     Q3 Business Review

The Annual Report for 2024 will be published by 5 March 2025. Betolar's financial reports are available on the company's website at www.betolar.com/investors

Webcast for investors and media

Betolar will host a live webcast in English for investors and media on 5 February 2025 at 14.00 Finnish time.

You can follow the broadcast at https://betolar.events.inderes.com/q4-2024/register

In the English presentation, CEO & President Tuija Kalpala, CFO Mikko Wirkkala and SVP& General Counsel Soila Söderström will present Betolar's financial statements and other topical issues. A recording of the event and the corresponding presentation will be available on Betolar's investor website later in the day.

Betolar Plc

More information

Tuija Kalpala, CEO & President, Betolar Plc, tuija.kalpala@betolar.com, +358 50 567 6608

Mikko Wirkkala, CFO, Betolar Plc, mikko.wirkkala@betolar.com, +358 50 458 4190

Certified Adviser:

Aktia Alexander Corporate Finance Oy, +358 50 520 4098

About Betolar

Betolar is a circular economy enabler and materials technology specialist, providing innovative solutions to help use industrial sidestreams to produce low-carbon and cement-free products for the mining and construction sectors.  Betolar's mission is to help reduce carbon emissions and the use of virgin resources in mining and construction.  

Betolar's circular economic innovations significantly reduce CO2 emissions from cement use and the use of virgin raw materials by utilizing industrial sidestreams.  Betolar is continuously developing its low-carbon Geoprime solution for the mining, metals and construction industries. In addition, Betolar's AI-based data platform creates value from industrial side streams and accelerates solution development. The SidePrime analytics service, based on the data platform, maps the potential for utilization of industrial side streams and waste.  

Betolar was founded in 2016 and is domiciled in Kannonkoski, Finland. Betolar is listed on the Nasdaq First North Growth Market. For more information www.betolar.com

Betolar Financial Statements Release 2024