- Multiplication of cement sales volumes by more than 3.5
compared with H1 2022: 7,338 tons sold in H1 2023
- Order book of over 250,000 tons to date, +30,000 tons since
January 1st, 2023
- A key international milestone was reached with the signature
of the first licensing contract in Saudi Arabia with the Shurfah
Group
- Industrial deployment in line with plan, marked by H2
commissioning in summer
- Solid financial structure in line with budget: equity of
€71.2 million and cash of €32.8 million (including
investments)
- Confirmation of short- and medium-term financial targets in
a context favourable to decarbonization of the sector
Regulatory News:
Hoffmann Green Cement Technologies (ISIN: FR0013451044, Mnemo:
ALHGR) ("Hoffmann Green Cement" or the "Company"), an industrial
player committed to the decarbonation of the construction sector
that designs and markets innovative clinker-free cements, announces
its results for the first half of 2023. The Company's Supervisory
Board met on September 15, 2023 and reviewed the accounts to June
30, 2023 approved by the Management Board.
Key elements of the Company’s consolidated half-year
accounts
€ thousands - IFRS
At June 30, 2023
At June 30, 2022
Revenue
1,676
544
EBITDA
-3,648
-3,519
Recurring operating profit/loss (EBIT)
-5,133
-4,720
Financial profit/loss
270
-1,454
Tax
1,259
1,586
Net profit/loss
-3,606
-4,558
€ thousands - IFRS
At June 30, 2023
At June 30, 2022
Cash and cash equivalents
32,760
52,775
Shareholders' equity
71,245
76,895
Julien Blanchard and David Hoffmann, Co-founders of Hoffmann
Green Cement Technologies, said: "In the first half of 2023,
Hoffmann Green was able to significantly increased its cement sales
volumes. Thanks to the daily work of all our teams, we are
accelerating the marketing of our innovative clinker-free cement in
a construction market in demand of truly carbon-free solutions.
Considering the seasonality of our sales, we intend to intensify
the transformation of our order book into sales during the second
half of 2023. We are therefore confident of achieving our 2023
revenue target of marketing 24,000 tons of cement, representing
revenue of more than €4.5 million.
At the same time, the Company continued to deploy its industrial
roadmap, with the commissioning of H2, which allow Hoffmann to
significantly increase its production capacity. Finally, Hoffmann
Green recently reached an important stage in its international
development roadmap with the signature of a structuring partnership
with the Shurfah Group, a major construction player in Saudi
Arabia, to support the decarbonization of the Saudi construction
sector.
In the medium term, with the strong sales momentum, the
deployment of our industrial plan in line with schedule and budget,
and a solid financial structure, we confirm that we will achieve
all our financial targets in a context of tightening regulations
(RE 2020, France's Environmental Regulation 2020) that are
increasingly restrictive for traditional cement manufacturers and,
on the contrary, favorable for Hoffmann Green."
H1 2023 achievements: strong growth in sales volumes,
stronger order book thanks to partnerships in France and abroad,
industrial deployment and CSR awards
Multiplication by more than 3.5 in cement sales volumes and
continued growth in the order book:
- Cement sales volumes up +251.6% year-on-year to 7,338 tons, in
line with the Company's 2023 target of 24,000 tons, with
historically higher sales in the second half of the year. Sales
mainly concerned H-UKR technology;
- Order book at over 250,000 tons, up 30,000 tons thanks to the
signing of 11 structuring partnerships and order commitments with
major players in the sector: VM Matériaux (H-IONA bags), Belin
Promotion, Groupe Alkern, OGIC, GCC (partnership extended), BSS,
Groupe Minier, Iribarren, Vendée Habitat, Domofrance and Marne
Béton.
Accelerated international expansion :
- 22-year licensing agreement in Saudi Arabia with the Shurfah
Group to build several vertical H2 units to support the
decarbonization of the country's construction sector. In return for
the industrial and technological transfer and this exclusivity,
Hoffmann Green will receive an entry fee from Shurfah, as well as
fixed and variable annual royalties based on revenue generated by
the selling of Hoffmann cements in Saudi Arabia;
- Signature of a partnership with the Eloy group to develop
carbon-free construction in Belgium, in particular for pilot
ready-mix concrete and prefabrication applications.
Continued implementation of industrial strategy, with budget
in line with plan:
- Commissioning of H2, the world's first vertical cement plant,
since June 30, 2023. Built entirely from Hoffmann cements, the
plant enables production capacity to be increased by 250,000 tons
of cement per year, in line with the Group's ambitions and growing
demand. The investment of €22.4 million is in line with
forecasts;
- Commissioning of Hoffmann Green's R&D concrete plant since
the beginning of April 2023. Equipped with solar trackers and
ultra-modern water treatment systems, this 4.0 plant combines
modernity and eco-responsibility, like all the Company's equipment.
It will enable the internal development of R&D activities such
as testing of future technologies and the development of certain
concrete formulations specific to Hoffmann Green's customers. Its
investment amounts to €2.0 million;
- Rehabilitation and commissioning during the summer of the site
of its subsidiary Hoffmann Microtech, acquired in June 2022. The
work made it possible to internalize the industrial process of
grinding blast furnace slag, one of the raw materials used in H-UKR
and H-IONA cements. The investment budget is €2.5 million.
Awards recognizing the Company's CSR commitments and
innovation policy:
- Awarded the Paulownias Prize by the Collège des Directeurs du
Développement Durable (C3D), which recognizes the managers of
tomorrow's companies who are committed to sustainable
development;
- Laureate of the "Waste and Circular Economy Showcase" at the
14ème National Forum organized by the PEXE network in partnership
with ADEME at the French Ministry of the Economy, Finance and
Industrial and Digital Sovereignty;
- Laureate of the French Tech 2030 program, an ambitious new
support program operated by La Mission French Tech alongside the
Secrétariat général pour l'investissement (SGPI) and
Bpifrance;
- Member of the World Cement Association (WCA), the world's
largest independent organization working on behalf of the cement
industry.
2023 half-year results
The Company's revenue amounted to €1.7 million, corresponding
mainly to cement sales of €1.6 million and the invoicing of carbon
credits in the amount of €0.1 million. During the first half of
2023, the Company pursued its commercial development with a +251.6%
year-on-year increase in cement sales volumes (7,388 tonnes in H1
2023 vs. 2,087 tonnes in H1 2022).
EBITDA was stable year-on-year (-€0.1 million). At the end of
June 2023, it stood at -€3.6 million, compared to -€3.5 million at
the end of June 2022. The year-on-year decrease in operating
expenses (+€0.2 million), due to tight control of certification
costs, was offset by the rise in personnel costs (-€0.3 million).
The Company's workforce increased from 41 at the end of June 2022
to 56 at the end of June 2023. The sales, R&D, technical and
operating teams have been strengthened in accordance with the
Company's development plan.
Operating income before non-recurring items for H1 2023 came to
-€5.1 million. Change over one year (-€0.4 million) is explained by
the evolution of EBITDA and higher depreciation charges.
Financial result was +€0.3 million, up significantly compared
with the previous year (+€1.7 million). As a reminder, the
Financial Result at the end of June 2022 (-€1.5 million) was marked
by the fall in value of the Company's UCITS linked to the effects
of the war in Ukraine on the financial markets.
After taking into account tax income of €1.3 million, net income
at the end of June 2023 was €3.6 million, compared with €4.6
million at June 30, 2022.
Solid financial structure in line with budget
At June 30, 2023, the Company had a solid balance sheet, with
shareholders' equity of €71.2 million.
Available cash amounted to €21 million (and €32.8 million
including investments), in line with the Company's development
plan.
The change in cash and cash equivalents over the first half of
2023 (-€9.2 million) is explained by operating cash flows (-€3.8
million), investment cash flows (-€3.5 million) linked to the
completion of work on the H2 production unit, the construction of
the concrete plant and work to upgrade Hoffmann Microtech's
production site, as well as loan repayments (-€1.9 million).
The Company's financial statements to June 30, 2023 will be
disclosed in the Company's half-yearly financial report, which will
be made available to shareholders on the Company's website by
October 30, 2023 at the latest, in accordance with legal and
regulatory requirements.
Strategy and outlook: short and medium-term financial targets
confirmed
In H2 2023, the Company will continue to execute its
strategic plan, with a particular focus on :
- Market a volume of 24,000 tons of cement by 2023, equivalent to
13,000 truckloads of concrete. This represents sales in excess of
€4.5 million. Given the seasonal nature of its sales, which are
higher in the second half of the year, the Company is confident of
achieving this target;
- Pursue its industrial deployment through the H3 project, for
which construction of the plant is scheduled to start in the first
half of 2024, for delivery in 2025. This schedule is in line with
the Company's industrial ambitions by 2026;
- Continue to sign contracts with strategic partners in France
and abroad;
- Develop the marketing of its carbon credits;
- Develop a fifth technology.
Confirmation of 2026 targets: revenue of €130 million and
EBITDA margin of 40%.
Despite the current economic climate, the Company considers that
it is well positioned and has strengthened its model in relation to
the decarbonization challenges facing the construction sector.
Unlike traditional cement manufacturers, the Company is
energy-efficient thanks to its clinker-free cold production
process, which requires little electricity. This is an asset for
its development in France and Europe in the current energy crisis.
What's more, from 2025 onwards, with the application of its second,
more restrictive threshold, France's Environmental Regulation 2020
(RE2020) will force construction players to use more low-carbon
cements, which will encourage the development of Hoffmann
cements.
In this context, Hoffmann Green has confirmed its target of
selling 550,000 tons of cement a year from three production sites
in France by 2026, representing revenue of around €120 million and
a 3% share of the French market.
At the same time, on an international scale, as already
undertaken in Switzerland and more recently in Saudi Arabia, the
Company aims to expand through licensing agreements with partners
responsible for financing, building and operating Hoffmann Green
vertical production units in their geographical territory, and for
marketing the Company's technologies. The Company aims to have 4
units operational by 2026, generating sales of around €10 million.
Construction of the first plant is due to start next year in Saudi
Arabia.
Overall, the Company expects to achieve an EBITDA margin of
around 40% by 2026, with the intermediate milestones of positive
EBITDA from 2024 and positive EBITDA from 2025.
ABOUT HOFFMANN GREEN CEMENT TECHNOLOGIES
Founded in 2014 and based in Bournezeau (Vendée, Western
France), Hoffmann Green Cement Technologies designs, produces and
distributes innovative extremely low-carbon cements – with a carbon
footprint 5 times lower than traditional cement – that present, at
equivalent dosage and with no alteration to the concrete
manufacturing process, superior performances than traditional
cement.
Hoffmann Green has two production units powered by a fleet of
solar trackers on the Bournezeau site: a 4.0 plant and H2, the
world's first vertical cement plant, which was inaugurated in May
2023. A third plant will be built at the major port of Dunkirk in
2024-2025, bringing total production capacity to 550,000 tonnes a
year, or 3% of the French market. The Group has developed a genuine
technological breakthrough based on the modification of cement
composition and the creation of a cold manufacturing process, 0%
clinker and low energy consumption, making it a leading and unique
player in the cement market, which has not changed for 200
years.
Within the context of the climate emergency and energy price
inflation, Hoffmann Green Cement is thus actively participating in
the energy transition by producing a clean cement that consumes 10
to 15 times less energy than a Portland cement, by working to
create eco-responsible buildings and by encouraging the circular
economy and the preservation of natural resources. Thanks to its
unrivaled technological know-how that is constantly improving,
driven by effective and cutting-edge teams, Hoffmann Green Cement
Technologies addresses all construction sector markets, both in
France and abroad.
Hoffmann Green was chosen as one of the 20 French green
start-ups in 2022 as part of the French Tech Green20 programme, run
by Mission French Tech in partnership with the French Ministry for
Ecological Transition. In June 2023, the company was selected as
part of French Tech 2030, an ambitious new support programme run by
La Mission French Tech alongside the General Secretariat for
Investment (SGPI) and Bpifrance.
The company is continuing to expand internationally, signing
contracts in the UK, Belgium, Switzerland and recently Saudi
Arabia.
For further information, please go to:
www.ciments-hoffmann.com/
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230917100909/en/
Hoffmann Green
- Jérôme Caron
- Chief Financial Officer
- finances@ciments-hoffmann.fr
- +33 2 51 460 600
NewCap Investor Relations
- Pierre Laurent
- Thomas Grojean
- Quentin Massé
- ciments-hoffmann@newcap.eu
- +33 1 44 71 94 94
NewCap Media Relations
- Nicolas Merigeau
- Antoine Pacquier
- ciments-hoffmann@newcap.eu
- +33 1 44 71 94 98
Hoffmann Green Cement Technologies | Telephone: +33 2 51 460
600 | Email: finances@ciments-hoffmann.fr
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