Bawat’s Guidance On 2022 Order Intake
In Q3 2022 Bawat reported that Order Intake for Q4 would support the full year guidance, however due to delayed decision making from customers the Order Intake for the full year 2022 will be lower than guidance.
With delay in decision making from two large individual clients in Q4 2022, the full year guidance of 35-50 mill SEK will not be reached, but instead full year order intake will be 18,1 mill SEK. The full Q4 figures will be released according to the financial calendar February 21st, 2023.
The guidance reflects the difficulty in projecting decision making on larger orders for mobile containerized solutions. These orders have a large impact on the full year volume and thus have a large on/off effect on reaching guidance. The two orders in discussion are still being negotiated with the clients.
Bawat is still very positive towards the future order intake, and the commercial activity level in the company does not reflect the missed guidance. The quote volume has steadily been increasing all through 2022 including Q4. In that increasing volume is also a larger share of mobile systems, which has proven to have a longer lead time for conversion to order. However, as multiple new sales agents across the globe also are getting traction with customers in the market, we expect that conversion rate from quotes to orders will increase in speed and volume in 2023. This will support the continued journey towards break even for the company.
With the full financial reporting of Q4 2022 on February 21st, 2023, Bawat will also report a detailed guidance for the 2023 year, but at current point in time Bawat is guiding for 2023 and beyond as follows:
- Order Intake 2023. 40-60 Mill SEK
- Estimated EBITDA break-even is forecasted to be reached in H2 2024 based on projected revenue, cost, and margin structure. This is in the line with the projection at the time of the IPO.
The company capital is still primarily used to push for sales and marketing activity, and the company business is still generating positive cash flow in all orders executed, thus seriously reducing the cash-intensity to EBITDA break-even.
FOR MORE INFORMATION, PLEASE CONTACT:
Investors & Media:
Marcus P. Hummer, CEO, E-mail: [email protected]
John B. Henriksen, CFO, E-mail [email protected]
Certified Adviser
Svensk Kapitalmarknadsgranskning AB
Telephone: +46 11 32 30 732
This press release constitutes inside information that Bawat Water Technologies AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out above, at the time stated by the Company's news distributor, Cision, at the publication of this press release on January 16, 2023.
For further information about Bawat Water Technologies AB, please contact above.
About Bawat
The development of an entirely new approach to ballast water treatment utilizing onboard waste heat to treat ballast water led to the founding of Bawat in 2011. A ballast water treatment system avoids disposal of untreated water in seas and harbors.
Bawat’s BWMS is a system that is simple, cost-effective, and sustainable, build on a zero environmental impact, using standard marine components. No filters, no chemicals and no UV. And is the first to market a USCG/IMO Type Approval BWMS that uses pasteurization to treat ballast water in a one-pass process.
Bawat has built upon its innovative breakthrough, and now offers ballast water solutions to the maritime industry in three categories:
- A ship BWMS for Retrofit and New Builds
- Mobile containerized solution for multiple vessel usage in a port, on a ship or for rigs
- Ballast Water as a Service for contingency or planned services in ports
Bawat is an engineer-driven company that is rooted in the tradition of Danish maritime innovation and with a deep maritime insight: www.bawat.com.