Hexagon Purus ASA

Results for the second quarter 2023 - Seite 2

Net cash flow from operating activities in the second quarter of 2023 was NOK -172 (-136) million, of which NOK 71 (72) million was build-up of net working capital. Net cash flow from investing activities was NOK -264 (-64) million in the second quarter of 2023, of which NOK 141 million relates to investments in equipment and buildings for the ongoing capacity expansion program. Settlement of the deferred consideration and parts of the contingent consideration related to the Wystrach acquisition was also made in the second quarter of 2023, amounting to NOK 86 million. Net cash flow from financing in the second quarter of 2023 was NOK 56 (-1) million. Net change in cash and cash equivalents in the second quarter of 2023 was NOK -380 (-201) million, and currency exchange differences on cash was NOK -13 (13) million. Cash and cash equivalents ended at NOK 973 (702) million, and liquidity was deemed satisfactory at the end of the second quarter of 2023.

Outlook

Hexagon Purus’ customer interactions are positively influenced by the strong legislative tailwinds, and customer demand for the Company’s products and services is expected to further accelerate going forward. Hexagon Purus has been successful in securing several long-term agreements recently, which gives the Company confidence in its medium to long-term targets.

Hexagon Purus’ order backlog, consisting of firm customer purchase orders, stood at approximately NOK 1.4 billion as of the second quarter of 2023, providing satisfactory revenue visibility for the Company’s full-year 2023 revenue target and increasing visibility for 2024 revenue. For 2023, the Company expects revenue growth of at least 50% year-over-year.

With several growth initiatives underway, including building production capacity and organizational capabilities to support customer launch activities and expected market demand in the coming years in North America, Europe and Asia, Hexagon Purus is in the investment phase of its development. Such investments are expected to impact profitability over the near-to-medium term. The relative EBITDA margin is expected to significantly improve year-over-year, but EBITDA will continue to be impacted by ramp-up of the organization and production facilities. Negative EBITDA for full-year 2023 is expected to widen by approximately 10% compared to full-year 2022 EBITDA.