9.2.2023 07:00:00 CET | Tekna Holding ASA | Half yearly financial reports and audit reports / limited reviews
(Arendal, NORWAY / Sherbrooke QC, CANADA) Tekna Holding ASA (Tekna, OSE: TEKNA), the world-leading provider of advanced materials to industry, today announces the company’s results for the fourth quarter of 2022.
“The quarter was marked by strong revenue growth in the Systems business and a record-high backlog of CAD 25 million. Operating revenues are expected to increase during 2023, supported by the strong order backlog,” said Luc Dionne, CEO of Tekna Holding ASA.
Total revenue in the quarter was CAD 6.8 million, an increase of 14 per cent compared to the fourth quarter in 2021. Sales growth in the quarter was mainly driven by a 50% growth in Systems revenues on the back of large orders. Advanced materials were marked by downtime while the machine park continued to undergo upgrades, which slowed down growth. Full year revenues in 2022 totaled CAD 26.9 million (26.8 million), stable from the previous year. Adjusted EBITDA in the fourth quarter of 2022 was CAD -2.9 million, improved year-on-year resulting from an increase in systems revenues and margins. Adjusted EBITDA for the full year 2022 was CAD -12.8 million, compared to CAD -4.6 million in 2021.
At the end of the fourth quarter the order backlog in materials was CAD 14.1 million. The total order backlog was a solid CAD 25 million, a 64 % increase year-on-year, reflecting the growing demand for additive materials, significant wins and strong pipeline of systems projects.
“The capacity increase program is progressing and we likely reach the targeted 70 per cent increase in production run-rate by the end of Q1 2023. Increasing capacity will translate into higher material availability, shorter delivery lead-times and increased sales, which is synchronized with the customer roll-out plan,” said Mr. Dionne.
Operating revenues are expected to increase during 2023, supported by the strong order backlog. Increasing production and delivery of advanced materials for additive manufacturing (AM) remain top priority for the company. Three powder systems will be coming online in 2023.
Improving profitability and cash position will be a clear priority for Tekna in 2023. Several initiatives have been implemented, with focus on both revenue growth, margin improvement and cost control.
“Tekna has taken important and immediate steps towards improving profitability and cash position. A roadmap to profitability has been drawn up, emphasising operational excellence, right-sizing of organisation, strict prioritisation of R&D efforts and strategic focus on near term revenue opportunities,” said Mr. Dionne.
Arendals Fossekompani (“AFK”), Tekna’s largest shareholder, reiterates its long-term support of Tekna. AFK and Tekna have agreed on the terms for a CAD 25 million loan facility. The loan agreement will be signed once current public funding institutions have given their consent.
Results presentation
Tekna will present its financial results for the fourth quarter in a pre-recorded webcast today at 13:00 CET. The results will be presented by Luc Dionne, CEO of Tekna Holding ASA, and the presentation will be made available on investors/reports (tekna.com)
Questions can be submitted via email to investors@tekna.com. Summary of the Q&A will be made available on www.tekna.com.
For more information, please see the fourth quarter presentation material, which is attached to this notice and available at http://www.tekna.com.
Disclosure regulation
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
Contacts
Arina van Oost, Investor Relations | VP Corporate Strategic Development & Innovation, Tekna, +1 438 885 6330, Investors@tekna.com
About Tekna Holding ASA
Tekna is a world-leading provider of advanced materials to industry, headquartered in Sherbrooke, Canada.
Tekna produces high-purity metal powders for applications such as 3D printing in the aerospace, medical and automotive sectors, as well as optimized induction plasma systems for industrial research and production. With its unique, IP-protected plasma technology, the company is well positioned in the growing market for advanced nanomaterials within the electronics and batteries industries.
Building on 30 years of delivering excellence, Tekna is a global player recognized for its quality products and its commitment to its large base of multinational blue-chip customers. Tekna’s powder products increase productivity and enable more efficient use of materials, thereby paving the way towards a more resilient supply chain and circular economy.
https://www.tekna.com
Attachments
Download announcement as PDF.pdf
2022Q4 vF.pdf
