Agilyx: Progress in place and an improved H2 on the cards, but macroeconomic backdrop starts to bite - Nordea

Agilyx published its H1 2023 report this morning, with progress in place and a back-end loaded 2023 on the cards, however a tough macro backdrop has caused an impact on pipeline conversion. The company posted revenues of USD 8.1m ( 4% growth y/y, 12% below NDA), with an almost doubling of conversion revenues (driven by Toyo Styrene) offsetting a decline in Cyclyx revenues. The reasons for this decline was due to lower customer production capacity due to facility maintenance. Down the P&L, gross margins remained positive (8%), and EBITDA came in at USD -10.5m, remaining negative as the company expands its footprint. Cash came in at USD 8m, which includes around USD 4m in pre-payments for the Cyclyx Circularity Centre in H2. Going forward, the company has noted that the macroeconomic backdrop has caused a slowdown to pipeline conversion, and alongside a sharpening of strategy (Agilyx will focus on select waste-to-product projects across polystyrene, PMMA and BTX) will target the development of three new projects per year (down from four).

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