- AFYREN NEOXY: Improvements underway and new targets for
operations:
- Start of continuous production in 2024 and break-even in
2025
- Development continues in France and abroad
- Finances are solid, with cash reserves of c.€50 million
expected by end 2023
Regulatory News:
AFYREN (ISIN code: FR0014005AC9, ticker: ALAFY)
(Paris:ALAFY), a greentech company that offers manufacturers
bio-based, low-carbon ingredients produced using unique
fermentation technology based on a completely circular model, has
provided a business update and targets for AFYREN NEOXY
operations
Nicolas SORDET, Chief Executive Officer of AFYREN,
comments: "Our AFYREN NEOXY plant, the only biorefinery of its
kind in the world, is being fine-tuned and prepped for continuous
production. Our priority is to finish this work as soon as possible
in order to serve our customers, who have always been aware of the
possible delays inherent in commissioning an industrial site with
an innovative process. Customer interest in our biobased acids is
intact — our contracts confirm it. At the same time, we are
pursuing our international projects, in particular by maintaining a
close relationship with our partner in Asia, Mitr Phol, and are
studying various scenarios to satisfy growing interest in strategic
markets. Finally, in a complex financial environment, our solid
cash position and the support shown by all our longtime partners,
both commercial and financial, enable us to approach fiscal 2024
with confidence."
Update on AFYREN NEOXY
Following the on-time delivery of the AFYREN NEOXY plant in 2022
and its successful industrial commissioning, our operational teams
focused in 2023 on production start-up, manufacturing several tons
of products and delivering the first batches in June 2023.
Continuous production is still our objective. Work carried out
over the second half of the past year has enabled us to determine
the following:
- The fermentations we have carried out validate our core
process, with the expected yield. As a reminder, this is a
biological process designed to convert biomass co-products directly
into biosourced platform molecules, without pre-treatment
- Certain post-fermentation stages (related to chemical processes
for separation and purification) have not reached the level of
performance expected to enable the plant to run continuously.
With these factors in mind, the Company's priority objective is
to start continuous production in 2024, with the plant reaching
break-even1 in 2025. The prior objective was to reach break-even in
the first half of 2024.
To further strengthen the links between the parent company and
its operating unit, AFYREN co-founder Jérémy Pessiot took over as
President of AFYREN NEOXY in the autumn of 2023.
Commercial appeal remains strong
AFYREN NEOXY has orders secured by contracts worth €165
million2, to be recognized over several years. The Company has
secured sales of almost 3/4 of its annual acid production and all
fertilizer volumes, proving that its offerings are attractive to
industrial customers. AFYREN can also confirm that the delays in
the start-up of continuous production have had no impact on the
secured contracts, and that its solutions continue to attract
strong interest from both end-customers and distributors.
Ongoing industrial development in France and abroad
In 2023, AFYREN's teams continued to work on the company's
worldwide industrial development. In Asia, AFYREN is in the process
of setting up a joint venture in Thailand with Mitr Phol, the
world's third-largest sugar group. The aim of the project is to set
up a biobased carboxylic acid plant near Bangkok. Recent
discussions have focused on the structure and governance of the
joint venture, the licensing of biotechnological know-how, and
local industrial implementation. Talks are ongoing with a view to
reaching a final agreement on the terms of the partnership. In
addition, studies are being carried out to increase AFYREN's
production capacity, notably in France.
In 2024, AFYREN will extend this work while maintaining the
priority of the operational teams on the start-up of continuous
production at the first plant.
Strong cash position
AFYREN anticipates a solid cash position of around €50 million
on December 31, 2023, thanks to tight cost controls, compared with
a very low debt level of around €5 million3. It has therefore the
financial latitude to support AFYREN NEOXY as it prepares for the
start of continuous production, and retains capital available to
finance a second unit.
About AFYREN
Founded in 2012 to address manufacturers’ growing need to reduce
the carbon footprint of their inputs and move towards more natural
ingredients, AFYREN manufactures biobased products to replace
petroleum-derived molecules. With its innovative, unique, and
proprietary process, the French greentech company offers
low-carbon, bio-based alternatives in the following sectors: human
and animal nutrition, cosmetics, flavors and fragrances, and fine
chemicals. By valorizing local, non-food biomass, AFYREN helps
manufacturers offer more sustainable finished products while
remaining competitive.
The company is pursuing an ambitious development plan to better
serve its international customers. Its first plant, AFYREN NEOXY, a
joint venture with Bpifrance's SPI fund, is located in France,
primarily to serve the European market. In early 2023, AFYREN
announced the launch of a factory project in Thailand, partnering
with a world leader in the sugar industry. AFYREN is also expanding
its presence on the American continent, in line with distribution
agreements already signed.
By 2023, AFYREN employed more than 110 people in Lyon,
Clermont-Ferrand & Carling Saint-Avold; the company invests 20%
of its budget in R&D every year.
AFYREN has been listed on Euronext Growth® in Paris since 2021
(ISIN code: FR0014005AC9, ticker: ALAFY).
For more information: https://afyren.com/
__________________
1 Current production EBITDA 2 Total volumes x sales price over
contract duration 3 €5.2 million including lease liabilities and
€4.9 million excluding lease liabilities at end-June 2023
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231214837593/en/
AFYREN Director for ESG, Communications and Public
Affairs Caroline Petigny caroline.petigny@afyren.com
Investor Relations Mark Reinhard
investisseurs@afyren.com
NewCap Investor Relations Théo Martin / Mathilde
Bohin Tel: 01 44 71 94 94 afyren@newcap.eu
NewCap Media Relations Nicolas Merigeau / Gaëlle
Fromaigeat Tel: 01 44 71 94 98 afyren@newcap.eu
International Media relations Bogert-Magnier
Communications James Connell +33 6 2152 1755
jim@bogert-magnier.com
Afyren (EU:ALAFY)
Historical Stock Chart
From Apr 2024 to May 2024
Afyren (EU:ALAFY)
Historical Stock Chart
From May 2023 to May 2024