Q3 2024 EcoSynthetix Inc Earnings Call Transcript
Key Points
- EcoSynthetix Inc (ECSNF) reported a 38% increase in sales to $5.2 million in Q3, driven by a 56% rise in product demand.
- The company transitioned to profitability with $365,000 in positive adjusted EBITDA and $1.6 million in cash from operating activities.
- The diversification strategy is yielding results, with growth across all target end markets and geographies.
- EcoSynthetix Inc (ECSNF) is working with blue-chip partners, increasing the volume of biopolymer purchases, indicating strong market acceptance.
- The company is seeing significant progress in the wood composites market, with strategic accounts executing plans and expanding product use.
- Winning new lines or accounts in the tissue and paperboard market is taking longer than anticipated, causing some frustration.
- The lower average selling price impacted sales by $700,000 or 18%, due to lower manufacturing costs passed on to customers.
- Despite increased activity, the company has not yet converted enough prospects and trials into commercial accounts.
- There is lumpiness in demand due to the diversification strategy, which may lead to inconsistent financial performance.
- The company faces challenges in achieving sustainable profitability, as current profitability is on a spot basis and not yet consistent.
Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Eco Synthetics 2024 3rd quarter results conference call. (Operator Instructions)
Listeners are reminded that portion of today's discussion may contain forward-looking statements that reflect current views with respect to future events.
Any such statements are subject to risk and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements for more information and eco synthetic risk and uncertainties related to these forward-looking statements. Please refer to the company's annual information form dated February 22nd 2024 which is posted on Sedar this morning on Tuesday, November 5th 2024 at 8:30 a.m. Eastern time.
I would now like to turn the call over to Mister Jeff MacDonald Chief Executive Officer of Eco Synthetics. Please go ahead, sir.
Thank you.
Good morning and thank you all for joining us yesterday afternoon
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