(Boursier.com) — The turnover ofHoffmann Green Cement achieved in 2022 is stable compared to that recorded in 2021 (2.2 ME vs. 2.4 ME). The drop in the average selling price per ton is offset by the increase in volumes of +18.6% (12,010 tons in 2022 vs. 10,124 tons in 2021). During the second half of 2022, the company offered more competitive prices on a few targeted and strategic projects. It should be noted that the marketing of Hoffmann carbon credits began at the end of 2022 and that the Company generated 26 K in turnover.
2022 EBITDA stood at -6.6 ME, compared to -5.2 ME in 2021. The drop in EBITDA over one year (-1.4 ME) is explained by the increase in the cost of raw materials (0.6 ME), the proliferation of product testing and development (0.4 ME) as well as the increase in payroll (0.4 ME). The company’s workforce increased from 33 employees at the end of 2021 to 43 employees at the end of 2022 due in particular to the acquisition of Hoffmann Broyage in June 2022 (4 FTEs) and the strengthening of the sales and technical teams.
The Current Operating Result stands at -9.4 ME. The change over one year (-2 ME) is explained by the change in EBITDA and the increase in depreciation and provisions (0.6 ME).
The 2022 Financial Result stands at -1.1 ME. It is explained by the depreciation of UCITS linked to the fall in their market value. In total and after taking into account a tax income of +2.6 ME, the 2022 Net Income stands at -6.7 ME.
As of December 31, 2022, the company benefits from a solid balance sheet with shareholders’ equity standing at €74.7 million, down €6.7 million due to the net profit for the year.
Available cash amounts to 30.2 ME (42 ME including investments). The change in cash over the period (-26.5 ME) is explained by investment flows (-18.6 ME) mainly related to the construction of the H2 production unit, the construction of the concrete plant ‘R&D’, the acquisition of the Company’s historic headquarters in Chaillé sous les Ormeaux and the acquisition of Hoffmann Broyage and by operating flows (-6.7 ME).
Strategy and Outlook
Doubling of volumes sold thanks to a record number of projects to be carried out in 2023, i.e. the equivalent of 13,000 concrete mixer trucks on 120 worksites
Confirmation of medium-term financial objectives in a booming low-carbon construction market
During 2023, the Company will continue to execute its strategic plan and will have as priorities:
– Industrial:
Inauguration and commissioning of the H2 site scheduled for May 2023.
– Commercial:
Continuation of signing contracts with strategic partners in France and abroad.
Objective to market a volume of 24,000 tonnes of cement over the year 2023, i.e. the equivalent of 13,000 concrete mixer trucks. This represents a turnover of more than 4.5 ME.
– R&D:
Development of a 5th technology to strengthen the competitive advantage of Hoffmann Green Cement.
– CSR:
Development of the marketing of carbon credits.
Confirmation of objectives for 2026: turnover of 130 MEUR and EBITDA margin of 40%
Backed by a solid financial situation and driven by a dynamic market environment where the inflationary context and the regulatory framework, with in particular the application of the second, more restrictive RE 2020 threshold from 2025, are favorable to the development of low-risk solutions
energy-intensive and carbon-free, the Company remains confident in its ability to achieve its commercial and financial objectives.
In France, Hoffmann thus confirms its objective of marketing in 2026, 550,000 tons of cement per year through three production sites, i.e. a turnover of approximately 120 ME, corresponding to 3% market share in France.
At the same time, internationally, as is already undertaken in Switzerland, the company wishes to develop through licensing agreements concluded with partners in charge of financing, building and operating Hoffmann Green Cement production units on their geographic territory and to market Hoffmann Green Cement technologies. The company aims to have 4 operational units by 2026 for a turnover generation of around 10 ME.
Overall, the company expects to be able to achieve an EBITDA margin of around 40% by 2026.