Eagle Filters Group Half-year review 1 January – 30 June 2024: Improved Profitability and Continued Revenue Growth
This release is a summary of Eagle Filters Group Oyj´s Half-year Review 2024. The complete report is attached to this release as a pdf file. It is also available on Eagle Filters Group Oyj´s website at https://eaglefiltersgroup.com/reports-and-presentations/
Eagle Filters Group has as of 31 December 2023 started to report consolidated group figures. The group consolidated figures comprise of Eagle Filters Group Oyj (parent company), Eagle Filters Oy, Eagle Filters DMCC and Lumeron Oy. The figures in this half-year review are not audited.
HIGHLIGHTS OF THE REVIEW PERIOD
JANUARY – JUNE 2024
Revenue increased by 34 % and amounted to EUR 4.3 (3.2) million.
Order intake increased by 15 % and amounted to EUR 2.5 (2.2) million.
Order backlog amounted to EUR 2.0 (2.5) million at the end of the period.
EBITDA was EUR -0.5 (-1.1) million.
Operating result was EUR -1.1 (-1.6) million.
Eagle Filters Group plans to raise additional funding during H2 2024.
Eagle Filters Group´s description of risks and uncertainties is included in the complete report which is attached to this release as a pdf file.
KEY FIGURES
EUR '000 | 1–6 / 2024 | 1–6 / 2023 | 1–12 / 2023 |
Order intake | 2 504 | 2 169 | 6 118 |
Order backlog | 1 955 | 2 450 | 3 637 |
Revenue | 4 303 | 3 209 | 6 028 |
EBITDA | -484 | -1 093 | -2 566 |
EBITDA-% | Neg. | Neg. | Neg. |
Operating result | -1 051 | -1 640 | -3 726 |
Operating result-% | Neg. | Neg. | Neg. |
Result for the financial period | -1 364 | -2 321 | -4 801 |
Earnings per share (EUR) | -0.01 | -0.02 | -0.03 |
Shareholders’ equity at the end of the period | 231 | 2 277 | 808 |
Equity ratio | 2.5 % | 22.0 % | 8.2 % |
Net debt | 4 494 | 4 466 | 4 206 |
Head count at the end of the review period | 61 | 65 | 63 |
CEO’s review
During H1 2024 we continued growing, reaching revenue of EUR 4.3 million. This was driven by the Clean Energy business area i.e. high performance air filtration technology for gas turbines.
Our aim towards profitability continues and we reached significantly improved EBITDA of EUR -484 thousand compared to EUR -1 093 thousand in H1 2023. In June, we started production of a large contract which was announced at the beginning of June. However, no revenue has been recognized from this project yet as revenue is recognized only upon delivery. Large orders also tie up operating capital, affecting our financial position.
Our sales backlog has decreased to a more sustainable level. A manufacturing backlog beyond 2-3 months is not optimal from the customer point of view within this business. Gas turbine maintenance outages are scheduled in advance and filters need to be delivered in time for these.
We have started our Advanced Materials business with first low volume sales. We believe our filter material product is very competitive in the market.
At the moment we have stopped the sale of health and safety products i.e. respirators due to low demand. We won the national public tender by the National Emergency Supply Agency (NESA) but as NESA declined to include an inflation clause to the agreement to be made, we withdrew from the offer. Without an inflation clause in a multi-year contract, we would have potentially needed to deliver respirators at a loss. As customer demand is strong for our industrial filtration products, we are focusing our efforts in this business.
FINANCIAL TARGETS AND OUTLOOK
Eagle Filters Group has set long-term targets for its 100% owned subsidiary Eagle Filters Oy. Eagle Filters Oy targets an average annual revenue growth of more than 30% and an EBITDA margin exceeding 20% in the long term.
The company’s management estimates that the special circumstances caused by Russia’s war on Ukraine and growing unrest in the Middle East have caused disturbance in the company’s operating environment. These events, however, are not expected to have an impact on Eagle Filters Group´s long-term targets.
Eagle Filters Group does not publish a short-term outlook.
For more information:
Jarkko Joki-Tokola, CEO, Eagle Filters Group Oyj. jarkko@eaglefiltersgroup.com
About Eagle Filters Group Oyj
Eagle Filters Group is a material science company that aims to enable a green and healthy environment.
Eagle provides high performance filtration solutions that cut CO2 emissions and increase profitability of the energy industry. Eagle’s technology improves performance and energy efficiency while cutting costs. The technology is being used by some of the world’s largest energy utilities.
The company group is listed on First North Growth Market Finland under the ticker EAGLE. The Company’s Certified Adviser is Carnegie Investment Bank AB (publ).