Cell Impact Q2 2023: Temporary lower level of activity and cost reduction program

Cell Impact AB (Nasdaq First North GM: CI) reports the following summary for the second quarter 2023.

Net sales during the second quarter totaled SEK 17.2 million (20.4). The operating profit, which dropped to –27.1 MSEK (–21.8), is disappointing and contrary to previously expected development.

Before the second quarter, we saw indications of significantly increased demand during the second half-year and we expected a good full year. Instead, we received indications that involve delays in orders. Against this backdrop, in July, we announced a cost reduction program to adapt our organization and costs to the lower levels of flow plate production that we now expect. Based on the continued progress in the development of the industry combined with our customers’ leading market positions we consider the current situation to be a temporary adjustment in production levels.

There is great interest in Cell Impact’s expertise and scalable production offering, where Cell Impact FormingTM plays an important role, providing the possibility to add capacity comparatively quickly. Cell Impact has a sharp focus on converting its strong pipeline of projects into new businesses.

Cell Impact’s financial targets
Sales target 2025: SEK 200–250 million
Sales target 2028: >SEK 600 million
Profitability targets: EBITDA >15% in medium term

The EBITDA break-even is still expected to be reached in 2025 driven by greatly improved productivity through Cell Impact’s Phase II program and larger sales volumes. In the longer term, Cell Impact sees potential for substantially higher EBITDA margins than the company’s profitability targets for the medium term.

Financial Summary

• Net sales totaled SEK 17.2 million (20.4).
• Operating profit (EBIT) was SEK –27.1 million (–21.8).
• The Group’s result after financial items was SEK –28.5 million (–22.2).
• Earnings per share attributable to the Parent Company’s shareholders before and after dilution totaled SEK –0.38 (–0.29).
• Debt/equity ratio was 76 percent (87) on the balance sheet date.
• Cash flows from operating activities amounted to SEK –24.2 million (–40.0).
• On the balance sheet date, the Group’s cash and cash equivalents totaled SEK 79.5 million (219.7).

This information is inside information that Cell Impact AB is obliged to make public pursuant to the EU Market Abuse Regulation.