Q2 2024 EcoSynthetix Inc Earnings Call Transcript
Key Points
- EcoSynthetix Inc (ECSNF) reported an 8% increase in sales for Q2 2024 compared to the same period last year, indicating positive growth.
- Volumes have increased by 21% this quarter and 43% year-to-date, showcasing strong demand across end markets.
- The company secured two new wins on new lines at existing accounts, validating the performance and value of their product offerings.
- Positive trial results in pulp, packaging, tissue, and wood composites markets demonstrate the effectiveness of EcoSynthetix's technology.
- The company has a strong cash position with $33.2 million in cash and term deposits, allowing for continued investment in growth strategies.
- Lower average selling prices impacted sales by $400,000 or 13% due to lower manufacturing costs being passed on to customers.
- SG&A expenses increased by $280,000 due to asset relocation costs, impacting overall profitability.
- The conversion of positive trial results into sales is slow, as industrial changes are challenging and take time.
- The graphic paper end market is not seen as a significant opportunity due to macro headwinds and diminished demand.
- The company reported an adjusted EBITDA loss of $790,000 in the quarter, unchanged from the same period in 2023, indicating ongoing financial challenges.
Good morning, ladies and gentlemen. Thank you for standing by, and welcome to the EcoSynthetix 2024 second quarter results conference. At this time, all participants are in a listen only mode. Following the presentation, we will conduct a question and answer session and instructions will be provided for you at that time for questions.
If anyone has any difficulty hearing the conference you may press star zero for operator assistance at any time. Listeners are reminded that portions of today's discussion may contain forward-looking statements that reflects current views with respect to future. Any such statements are subject to risk and uncertainties cause actual results to differ materially from those projected in the forward-looking statements.
For more information on EcoSynthetix risks and uncertainties related to these forward-looking statements, please refer to the company's annual information form dated February 27th, 2024, for which is posted online. This morning's call is being recorded on Wednesday, July 31st, 2024 at 8 AM Eastern time. I would now like to turn the call over to
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