GLOBAL BIOENERGIES PUBLISHES HALF-YEAR FINANCIAL RESULTS
GLOBAL BIOENERGIES PUBLISHES HALF-YEAR
FINANCIAL RESULTS
Paris, 26 September 2022:
Global Bioenergies’ Board
of Directors met today and approved the H1 2022 financial
statements, which have been audited by the Statutory Auditor and
present a smaller loss than in previous years.
The first half 2022 report is available for
download from the Global Bioenergies website under
“Investors/Regulated Information”.
Samuel Dubruque, Chief Financial Officer of
Global Bioenergies, said: “The recorded loss is significantly lower
than last year, due to a reduction in expenses of almost €3 million
compared to the first half of 2021. The first half was a period of
transition for the Group between the end of production at Leuna and
the construction of the new Pomacle unit. The revenue generated by
these activities will be recognised upon delivery of the first
batch of Isonaturane® 12 in the first quarter of
2023. Delivery of two further batches is already foreseen for
2023: Global Bioenergies is fully committed to the
commercialisation of its process.”
Marc Delcourt, co-founder and CEO of Global
Bioenergies, explained: “Every tonne of Isonaturane® 12 produced
and sold will bring naturalness to nearly 500,000 make-up products.
This market offers ideal conditions for the roll-out of our
technology: prices are high and there is a strong appetite for
natural ingredients. We are already working towards the next
horizon of building a plant capable of producing 2,000 tonnes of
isobutene and derivatives per year by 2025, which will enable us to
reach all cosmetics markets, and also to explore opportunities in
the road and aviation fuel markets, among others.”
- Group
Profit & Loss Account
|
|
|
|
€ thousands |
from 01/01/22 |
from 01/01/21 |
from 01/01/20 |
Consolidated
financial statements |
to 30/06/22 |
to 30/06/21 |
to 30/06/20 |
|
|
|
|
|
|
|
|
Operating
income |
1,059 |
1,903 |
1,728 |
Operating
expenses |
6,632 |
9,455 |
8,603 |
|
|
|
|
Operating
profit (loss) |
-5,573 |
-7,552 |
-6,875 |
|
|
|
|
EBITDA |
-5,014 |
-6,515 |
-5,300 |
|
|
|
|
Financial
profit (loss) |
-61 |
-79 |
-128 |
Exceptional
profit (loss) |
-124 |
10 |
67 |
|
|
|
|
Income tax
(research tax credit) |
NA* |
NA* |
NA* |
|
|
|
|
Net profit (loss) |
-5,759 |
-7,621 |
-6,936 |
* By convention, the Group does not record a
research tax credit in its half-year financial statements at the
end of June.
Operating income mainly consists of:
- €144,000 of revenue, including
€50,000 relating to the LAST® brand, with the remainder primarily
corresponding to the invoicing of samples sent to manufacturers,
particularly in the make-up market;
- €894,000 in subsidies under various
European programmes aimed at broadening the range of feedstocks
that can be used in the process.
The greatest changes in operating expenses can
be found in the “Industrialisation/Commercialisation” line, details
of which are provided below:
|
|
|
|
€ thousands -
Group |
H1 2022 |
H1 2021 |
H1 2020 |
Detail of
operating expenses |
|
|
|
|
|
|
|
|
Personnel
costs |
2,309 |
2,079 |
2,223 |
Industrialisation/Commercialisation |
2,597 |
4,886 |
2,418 |
Change in
inventory* |
-584 |
-520 |
- |
Laboratory |
185 |
322 |
587 |
Rent and
maintenance |
423 |
413 |
511 |
Intellectual
Property |
137 |
326 |
270 |
Depreciation/Amortisation |
559 |
1,038 |
1,576 |
Other |
1,006 |
911 |
1,018 |
|
|
|
|
Total |
6,632 |
9,455 |
8,603 |
* a negative sign “–” here indicates a rise in
inventory value
|
|
|
|
€ thousands - Group |
H1 2022 |
H1 2021 |
H1 2020 |
Detail of “Industrialisation/Commercialisation” item |
|
|
|
|
|
|
|
|
INDUSTRIAL PRODUCTION |
|
|
|
|
|
|
|
Industrial scaling up |
1,301 |
332 |
695 |
Fermentation runs |
753 |
3,203 |
3,258 |
Historical 1-step process |
- |
2,062 |
1,607 |
New 2-step process |
753 |
410 |
- |
|
|
|
|
Conversion of isobutene into Isonaturane® 12 |
64 |
747 |
- |
Product Development |
243 |
- |
- |
|
|
|
|
LAST® BRAND
ACTIVITY |
|
|
|
|
|
|
|
Testing and production |
- |
345 |
116 |
Brand development |
235 |
990 |
- |
|
|
|
|
Total |
2,597 |
4,886 |
2,418 |
The Leuna demo plant was dismantled when the
operating agreement ended in July 2021 after 4 years in service.
The main units were relocated to the Pomacle site in France for the
second step of the new production process, while the first step,
which consists of producing DMA - the precursor of isobutene - was
carried out by tollers, leading to an increase in inventories of
more than half a million euros.
A smaller quantity of isobutene was converted
into Isonaturane® 12 compared to the first half of 2021, the period
during which the conversion process was developed.
Work also focused on the development of products
for marketing, including regulatory aspects. LAST® brand expenses
relate to sales and marketing activities only.
Assets (€ thousands) |
30/06/22 |
31/12/21 |
|
Liabilities (€ thousands) |
30/06/22 |
31/12/21 |
|
|
|
|
|
|
|
Intangible assets |
658 |
800 |
|
Capital |
743 |
743 |
Tangible assets |
819 |
637 |
|
Share premium |
29,289 |
29,289 |
Assets under construction |
2,641 |
1,897 |
|
Balance carried forward |
-16,321 |
-4,697 |
Financial assets |
1,547 |
1,544 |
|
Profit (loss) |
-5,759 |
-11,773 |
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
5,665 |
4,879 |
|
EQUITY |
7,952 |
13,562 |
|
|
|
|
|
|
|
Industrialisation inventories |
2,122 |
1,793 |
|
PROVISIONS |
71 |
61 |
R&D consumables inventories |
381 |
250 |
|
|
|
|
Receivables |
3,502 |
3,524 |
|
Conditional advances and loans |
11,678 |
12,454 |
Cash |
11,706 |
20,931 |
|
Trade payables |
2,962 |
3,520 |
Marketable securities |
156 |
147 |
|
Tax and social security liabilities |
561 |
1,185 |
Prepaid expenses |
376 |
261 |
|
Other debts and deferred income |
683 |
1,003 |
|
|
|
|
|
|
|
CURRENT ASSETS |
18,242 |
26,907 |
|
PAYABLES and DEFERRED INCOME |
15,884 |
18,163 |
|
|
|
|
|
|
|
TOTAL ASSETS |
23,907 |
31,785 |
|
TOTAL LIABILITIES |
23,907 |
31,785 |
Assets: fixed assets increased due to the work
carried out at the Pomacle site. Inventories increased mainly as a
result of DMA production operations.
Cash and cash equivalents decreased by €9.3
million during the period. Cash flow from operations changed by
€7.3 million, including an increase of just under €2 million in
working capital (increase in inventories, flat receivables,
reduction in payables). The additional outflows of €2 million
correspond to works at the Pomacle site and debt repayment.
Liabilities: all liability items decreased. The
Group no longer has any deferred income from publicly funded
projects.
-
Highlights of the first half of 2022, recent
events and outlook
The very first orders for Isonaturane® 12 placed
in June by several major cosmetics companies, including L’Oréal,
were undoubtedly the most significant development of the first half
of the year.
A commercially focused process was implemented
for the first time since the creation of the Company: this is a
major step forward for Global Bioenergies, reflecting the desire of
industry players to find ever more environmentally friendly
solutions. These orders follow a customer referencing process
carried out over several months, which included sending out samples
for testing. Delivery of these initial orders is scheduled for
early next year.
Global Bioenergies’ Isonaturane® 12 stands out
in the world of cosmetic ingredients for its particularly high
selling price. The fact that it is the first cosmetic grade
isododecane of natural origin gives it a very high added value.
This molecule, traditionally derived from oil, is essential for
longwear, water-resistant and low transfer make-up. When
incorporated to achieve these characteristics, it is the main
ingredient, representing between 25% and 50% of the
formulation.
Isonaturane® 12 thus opens the way to
naturalness in the so-called “longwear” make-up segment, which
represents a quarter of the global make-up market. The selling
price of Isonaturane® 12 benefits from the specific characteristics
of the make-up sector:
- Limited volumes
compared to other cosmetic applications - a make-up product
represents only a few grams of formulated ingredients. A single
tonne of Isonaturane® 12 can switch the equivalent of 500,000
units of lipstick or mascara to naturalness. This limits the
Company’s exposure to feedstock and energy price fluctuations.
- Very small
proportion (less than 1%) of the cost of ingredients in the selling
price of a finished make-up product.
The business model for the upcoming periods will
therefore be based on an operating chain capable of producing
several dozen tonnes of Isonaturane® 12 per year from plant-derived
and renewable resources, corresponding to annual revenue of several
million euros.
Horizon 1: Organisation of the
LAST® business
The development and launch in June 2021 of the
LAST® brand - the first make-up brand in the world to incorporate
Isonaturane® 12 and thereby enable the combination of naturalness
and longwear performance - required the enlisting of external
expertise.
After witnessing a successful launch, the choice
was made to bring the functions required for the deployment of the
brand in-house: sales, communication, digital marketing, and so on.
A director was hired to lead this team of five people, increase
awareness of the LAST® brand, boost sales and balance the ratio of
expenses to revenue. This organisation resulted in a significant
reduction in costs compared to 2021.
In February, the team was awarded the
prestigious Prix d’Excellence France award in the “Research and
Innovation” category by Marie-Claire magazine, whose jury chose to
recognise LAST® for its make-up combining performance and
naturalness.
Horizon 2: Construction of the new
isobutene production unit in Pomacle
In 2021, Global Bioenergies switched to using
generic fermenters for the majority of its process that were much
larger than the two fermenters it had previously used. Only the
final step, the conversion of the isobutene precursor - DMA - into
isobutene, still requires a specific fermenter.
The decision was therefore taken to develop a
commercial production chain at the Pomacle site using this
so-called “two-step” process. The engineering studies and
preparatory work carried out at the end of 2021 gave way to the
actual construction and integration work, which took place in the
first half of 2022. The very first batches of “two-step” isobutene
were produced in March using the 0.5 m3 fermenter installed on site
since 2015, prior to the connection of the 5 m3 fermenter from
Leuna, which will soon increase the unit’s production capacity
tenfold.
A portion of the isobutene derived from this new
process will then be converted into Isonaturane® 12 by a chain
of tollers, with the remainder being used to explore other
applications, including road and aviation fuels.
Horizon 3: Engineering
work for the 2,000-tonne plant project
Engineering studies were carried out
simultaneously during the first half of 2022 in order to define the
industrial process for the 2,000-tonne plant and ensure its
robustness. Experimental validation work was carried out for the
key steps. A model was developed to ensure that they could be
extrapolated to a larger scale.
The mass and energy balances of the process were
developed, challenged and optimised. This entailed a sequence of
unit operations, selected on the basis of technical and
environmental performance criteria. The Company has hired an
engineering firm to carry out the preliminary design of the
plant.
Horizon 4: Breaking
into the fuel markets
The commercial opportunities for isobutene and
its derivatives are not limited to Isonaturane® 12. Of course,
this route offers the greatest potential in terms of pricing.
However, isobutene was identified at the time of the Company’s
creation because of the many markets in which it could be used:
cosmetics, fuels, plastics, rubbers, fine chemicals, etc. The
economic equation only functions today in the cosmetics market, we
can nonetheless see a growing interest among all industry sectors
in accessing raw materials with a better environmental profile.
The huge fuel market - characterised by both
high volumes and low prices - also has a need to limit its carbon
footprint, particularly in the aviation sector. The Company expects
to have its aviation process certified within the next six months.
There are very few solutions in this field: only seven technologies
worldwide have been certified to date. Several oil companies have
approached Global Bioenergies in recent months, including giants
Shell and Repsol, reflecting a growing interest in the Company’s
solutions and potential. Efforts to improve the process will still
be necessary in order to bring it to the level of cost required in
the fuels sector.
About GLOBAL BIOENERGIES
Global Bioenergies converts plant-derived
resources into compounds used in the cosmetics industry, as well as
the energy and materials sectors. After launching the first
long-lasting and natural make-up brand LAST® in 2021, Global
Bioenergies is now marketing Isonaturane® 12, its key ingredient,
to major cosmetics companies to improve the naturalness of their
formulas whilst improving their carbon footprint. In the long run,
Global Bioenergies is also aiming at cutting CO2 emissions in
the aviation and road sector and thereby curb global warming.
Global Bioenergies is listed on Euronext Growth Paris (FR0011052257
- ALGBE).
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Contacts
GLOBAL BIOENERGIESSamuel
DubruqueCFOinvest@global-bioenergies.com |
MEDIA RELATIONSIva
Baytchevaibaytcheva@ulysse-communication.com Nicolas
Danielsndaniels@ulysse-communication.com |
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