10.11.2022 07:00:01 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 third quarter of 2022.
“The quarter was marked by continued strong demand for advanced materials for additive manufacturing and a slower growth in revenues which was as expected. We also saw a rebound of the Systems business with a more than CAD 9 million PlasmaSonic order, which will be booked as order intake in the fourth quarter,” said Luc Dionne, CEO of Tekna Holding ASA.
Total revenue in the quarter was CAD 5.9 million, an increase of 5.7 per cent compared to the third quarter in 2021. Sales of advanced materials were marked by downtime while the machine park continued to undergo upgrades, which slowed down growth. Adjusted EBITDA in the third quarter of 2022 was CAD -4.0 million, reflecting lower revenues and front loading of resources supporting the strategy.
Order intake for additive manufacturing materials was CAD 3.7 million, which is lower than in recent quarters and slightly higher than in the third quarter of 2021. The backlog for materials at the end of September 2022 was CAD 12.5 million, up from CAD 8 million last year. The traction for additive powders remains strong and Tekna materials are instrumental to leading original equipment manufacturers’ (OEM) industrialization success.
The scheduled capacity increase for additive materials is progressing. Tekna aims to complete the 70 per cent increase in output by the end of Q1 2023. In the meantime, sales revenue for the second half of 2022 is expected to be approximately the same level as the second half of 2021.
“Additive manufacturing remains the most commercialized segment for our advanced materials with strong market growth. Increasing materials production capacity is the top priority for generating revenue. The full effect of the output increase will be reflected in sales revenues when all machines are upgraded to the new level in 2023,” said Mr. Dionne.
In addition to additive manufacturing, Tekna continues to pursue a significant potential for its advanced materials in microelectronics and, for the longer term, in energy storage while carefully managing cashflow and resources.
“A recent tour of leading manufacturers of multi-layer ceramic capacitors (MLCCs) in Asia confirms the observed industry trends and the customers’ interest and strategic need for MLCC materials. The development work is still progressing with the leading customers, but no order is expected before 2023,” said Mr. Dionne.
Due to the delays in production and development, Tekna expects to require additional financing in 2023. The company is in dialogue with its main shareholder, Arendals Fossekompani, regarding future financing. A conclusion to this is expected no later than the first quarter of 2023.
Results presentation
Tekna will present its financial results for the third quarter today at 13:00 CET. The results will be presented by Luc Dionne, CEO of Tekna Holding ASA, and the event will be made available via a live webcast. Click the following link to register and gain access to the webcast: https://www.tekna.com/investors/webcast-2022q3
Questions can be submitted via the webcast link during the live event. A recorded version of the webcast will be available shortly after the webcast has concluded.
For more information, please see the third 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
2022Q3 vF.pdf
