Betolar Plc Half-Year Financial Review 1–6/2024: A shift in focus to mining and metals industry is starting to pay off

Betolar Plc
Company Release
27 August 2024 at 8:30 a.m. EEST

Betolar Plc Half-Year Financial Review, 1 January–30 June 2024 (unaudited)

Betolar Plc Half-Year Financial Review 1–6/2024: A shift in focus to mining and metals industry is starting to pay off

This is a summary of the half-year report for January-June 2024, which is attached in full to this release and can be downloaded from the company's website at: https://www.betolar.com/investors

April-June 2024 in brief

• Net sales amounted to EUR 208 (88) thousand
• EBITDA amounted to EUR -1,691 (-3,062) thousand
• Cash and cash equivalents and short-term fund investments at the end of the period amounted to EUR 9,982 (18,514) thousand
• Order intake amounted to EUR 120 (90) thousand
• The number of new NRE projects was 3 (1)
• The number of new pilot customers was 1 (13)
• The average number of employees was 51 (63)

January-June 2024 in brief

• Net sales amounted to EUR 276 (131) thousand
• Gross margin amounted to EUR 217 (36) thousand
• EBITDA amounted to EUR -3,649 (-6,186) thousand
• Operating profit (loss) was EUR -4,664 (-7,075) thousand
• Profit for the financial period amounted to EUR -4,534 (-7,031) thousand
• Earnings per share were EUR -0.23 (-0.36)
• Cash and cash equivalents and short-term fund investments at the end of the period amounted to EUR 9,982 (18,514) thousand
• Order intake amounted to EUR 495 (138) thousand
• The number of new NRE projects was 5 (1)
• The number of new pilot customers was 2 (18)
• The average number of employees was 51 (64)

Main events during the period

• Betolar was granted a patent concerning a method for treating road or foundation base layer, that allows it to reduce the life cycle costs of roads
• Betolar was granted a patent for a liquid chemical dosing device
• Betolar won several innovation awards for the circular economy and hollow-core slabs
• On 14 February 2024, Betolar updated its medium and long-term business and financial targets
• The Annual General Meeting was held on 27 March 2024
• In April 2024, Betolar initiated change negotiations intended to change the organisational structure, introduce new business models and ways of working and reduce fixed costs. As a result of the change negotiations, 13 positions will be terminated in Finland
• Changes in Betolar’s Management Team:
  • The Board of Directors appointed Tuija Kalpala, Chief Operating Officer, as Betolar’s new CEO and President to accelerate the company’s commercial development. She took up her new position on 22 April 2024. Following the merger of sales and operations functions, Ville Voipio, Chief Commercial Officer stepped down from the Management Team and took up new responsibilities for Betolar’s construction business and marketing
  • The company reached a mutual agreement with Antti Uski, Chief Human Resources Officer, and Jarno Poskela, Chief Technology Officer, that they will leave their positions in the company. Both continued in the company’s Management Team until 13 June 2024 and were employed by Betolar until the end of July
  • Mikko Wirkkala was appointed as the Chief Financial Officer (CFO), and he will take up his position no later than 3 September 2024. Riikka Ylikoski, the company´s CFO, continued in her position until mid-July, after which she will move to another employer
  • General Counsel Soila Söderström was invited to join the Management Team as of 29 May 2024. She is responsible for the company’s legal affairs, human resources, communications and sustainability

Main events after the period

• Betolar was granted a patent in Finland enabling the large-scale use of side streams in road, soil and ground construction.
• Betolar and Norge Mineraler signed a memorandum of understanding to develop sustainable mining solutions in Norway.
• Betolar acquired MetalCirc’s patent regarding treatment of waste combustion ashes
• Betolar was granted a patent in Finland for CEM III/B accelerator solution

Betolar’s consolidated financial statements for the period that ended 30 June 2024 have been prepared in accordance with the International Financial Reporting Standards (IFRS) and International Committee (IFRIC) in force on 30 June 2024.

The figures in parenthesis in this report refer to the comparison period, i.e. the same period in 2023, unless stated otherwise. The figures for the comparison period are based on the audited annual financial statements, and all figures are in accordance with IFRS.

President and CEO Tuija Kalpala

We made good progress in the second quarter in the side streams, mining and metals customer segments. Our net sales and order value increased compared to the previous year, especially thanks to our mining customers. During the period, our focus on high-volume mining customers has been reflected in an increase in the number of NRE projects and a corresponding decrease in the number of pilot clients on the construction side. The strategic refocusing and subsequent structural changes and measures adopted as a result are reflected in a decrease in our cost base compared to the comparative period. This supports the commercialisation of our solutions, Betolar’s profitable growth, and the strengthening of our financial position.

The international demand for our expertise and technology is reflected in development and partnership agreements with partners such as Outokumpu and Norge Mineraler, who strive for more sustainable mining. We provide the mining and metals industry with innovative solutions that help them move towards zero-waste and low-carbon operations, and projects in various countries to ensure self-sufficiency in battery minerals and other critical precious metals are expanding our market.

In concrete construction applications, we continued to work with our customers. Our newly developed low-carbon hollow-core slabs have received approval from the Finnish Concrete Association for the use of activator chemicals in concrete mixtures. This approval enables the hollow-core slab to be CE-marked, allowing it to be used in construction like conventional hollow-core slabs. Although the demand for concrete construction is currently low, we are ready to offer researched and tested low-carbon concrete products to the market as it recovers.

Betolar’s innovative solutions received significant recognition early this year. In April Geoprime hollow-core slabs won first prize at the prestigious Building Materials Industry Innovation Award in Paris, France. In May, we received the 2024 Terry Treanor Innovation Award from the International Prestressed Hollowcore Association (IPHA) for developing the world’s lowest emission hollow-core slabs, and Betolar’s Belgian customer Tubobel Group won the Sustainability Award at Techni-Mat for its cementless Geoprime concrete pipes. Finally, Betolar was honoured by the Finnish Chemical Society with the 2024 Circular Economy Innovation Award for a business idea in the chemical sector that benefits both the environment and the economy.

Our research, development and innovation activities are strengthening our commercial position and our ability to create new value, especially in the exploitation of high-volume industrial side streams. In the first half of the year, we focused on the research and development of materials and mining applications. In our innovation activities, we made progress in the recovery of precious metals and the development of technologies for permanent carbon sequestration. We also obtained several new patents this past spring.

In June, we completed our change negotiations, which resulted in a new operating model and a structurally leaner organisation. The new operating model strengthens our customer focus and project management. The changes will enable us to strategically refocus our activities in a changed market and demand environment, to strategically allocate resources and to ensure our ability to finance future growth phases.

I would like to thank everyone involved in the Betolar journey so far for your valuable contributions to promoting the circular economy. Together with our professionals, customers and partners, we have developed Betolar into a more impactful and solutions-oriented company that helps our customers achieve their sustainability goals.

Group key indicators

(EUR thousand, unless otherwise specified)	4–6 2024	4–6/2023	1–6 2024	1–6 2023	1–12 20234
Financial indicators
Net sales	208	88	276	131	515
Gross margin1			217	36	340
EBITDA1,2	-1,691	-3,062	-3,649	-6,186	-11,181
Operating profit (loss)			-4,664	-7,075	-13,260
Earnings before interest and taxes			-4,569	-7,051	-13,177
Profit (loss) for the financial period			-4,534	-7,031	-13,153
Earnings per share, basic and diluted, EUR1,3			-0.23	-0.36	-0.67
Cash and cash equivalents and short-term fund investments (at the end of the period)1,2	9,982	18,514	9,982	18,514	14,315
Operational indicators
Order intake (EUR thousand)1,2	120	90	495	138	607
Number of new NRE projects 1,2	3	1	5	1	9
Number of pilot customers1,2	1	13	2	18	24
Personnel (average number during the financial year)	51	63	51	64	60

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 is all follows 30 June 2024: 19,606,882, 30 June 2023: 19,551,590, 1– 6/2024: 19,606,882, 1– 6/2023: 19,541,674 and 31 December 2023: 19,606,882.
4. The figures for the financial year 2023 have been audited.

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 27 August 2024 at 10.00 a.m. Finnish time. The webcast can be followed at https://betolar.videosync.fi/q2-2024-result/register

During the presentation, President and CEO Tuija Kalpala and General Counsel and interim CFO Soila Söderström will present Betolar's half-year report and other topical issues. A recording of the event and a corresponding presentation in English will be available on Betolar's investor website later in the day.

Betolar Plc

More information

Tuija Kalpala, President & CEO, Betolar Plc, [email protected], +358 50 567 6608

Soila Söderström, General Counsel and interim CFO, Betolar Plc, [email protected], +358 400 609 659

Certified Adviser:

Aktia Alexander Corporate Finance Oy, +358 50 520 4098

About Betolar

Betolar Plc is a pioneering Finnish materials technology company driving the green transition in mining and construction. Betolar’s mission is to help reduce CO₂ emissions and the use of virgin natural resources.

Betolar develops low-carbon and waste-free solutions for the mining and metals industries, and its Geoprime® solution produces i.a. the world's lowest-emission hollow-core slabs. Betolar’s AI-powered Data Platform turns industrial side streams into value, accelerates solution development and builds global markets for side streams.

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