Earnings Release • Apr 23, 2024
Earnings Release
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Chartres, le 23 April 2024 - OSMOSUN® , a leading provider of solar-powered seawater and brackish water desalination solutions, today announces its results for the year ended 31 December 2023.1 . (ISIN: FR001400IUV6 – Symbol: ALWTR)
"2023 proved to be a turning point for OSMOSUN. Besides successfully pursuing the deployment of major projects won in previous years, particularly in Mauritania, Saint Kitts and Nevis and Cape Verde, we also launched a bold new development phase thanks to the funds raised from our successful IPO, with a view to becoming a leading player in low-carbon water treatment.
We have therefore started to strengthen our teams and sign new partnerships with the aim of expanding our local presence in priority regions worldwide and multiplying our commercial opportunities. These investments obviously impact our short-term results but will lead to future growth.
Our pipeline of projects under advanced negotiations has gathered pace thanks to the proliferation of small projects alongside an increasing number of major potential contracts. We are fully committed and perfectly positioned to consolidate a portion of these opportunities. However, due to decision-making cycles being longer than expected, we have been forced to take a cautious approach and push back our medium-term guidance by one year."
1 The annual consolidated financial statements were approved by the Board of Directors on 22 April 2024. Audit procedures have been carried out by the Statutory Auditors and the financial report will be published by 30 April 2024 at the latest.
Full-year revenues, recognised on a percentage of completion basis in accordance with project costs incurred up to the balance sheet date, came to €3.0 million in 2023, mainly driven by progress across major contracts in the Group's strategic regions, particularly in the Caribbean (Saint Kitts and Nevis), Africa (Cape Verde, Mauritania, Morocco and Djibouti) and Oceania (Vanuatu).
Revenues are down 34.7% versus 2022 due to delays on certain major contracts, which therefore contributed lower revenues than expected in 2023 but will boost revenues for the current financial year.
| €000 | 2022 | 2023 |
|---|---|---|
| Revenues | 4,602 | 3,003 |
| Total production2 | 4,746 | 3,356 |
| Gross margin2 | 2,355 | 1,170 |
| EBITDA2 | 171 | (1,947) |
| Adjusted EBITDA2 | 197 | (1,925) |
| Operating income | (623) | (2,705) |
| Adjusted operating income2 | (596) | (2,683) |
| Financial result | (223) | (580) |
| Net non-recurring items | 362 | 192 |
| Net income/(loss) | (456) | (3,071) |
Adjusted EBITDA came to a €1.9 million loss in 2023, compared to a €0.2 million profit the previous year. Adjusted EBITDA was curbed by (i) the temporary impact of one contract on gross margin, which fell short of the Group's normal gross margin level of 45-50%, and (ii) an increase in operating costs linked to Group's development phase.
Personnel costs rose 54% year on year to €1.9 million, driven by the recruitment plan launched by the Group during the period. The average headcount increased by 47% to 28.2 FTE3 in 2023 compared to 19.2 FTE in 2022. OSMOSUN launched an extensive recruitment drive in 2023, opening nine new positions. The sales team now comprises ten FTE versus six at the end of 2022. The aim is to strengthen the Group's presence in priority regions (notably Africa and Asia-Pacific) and increase the Group's ability to process bids in order to multiply its growth opportunities for
projects of all sizes. Meanwhile, the Group expanded its technical and operational teams in order to support activity ramp-up and ensure the industrialisation of small-capacity projects.
Non-recurring expenses arising from the IPO amounted to €0.3 million.
The Company posted a net loss of €3.1 million for the period, compared to a €0.5 million loss in 2022, after taking into account a purely accounting non-recurring expense relating to non-issuance premiums as part of the subscription to the capital increase by conversion of convertible bonds into shares.
Operating free cash flow came to a €2.8 million outflow (compared to a €0.6 million outflow in 2022), including operating funding needs (€2.2 million outflow) and limited investments (€0.6 million outflow).
Strengthened by the net proceeds from the capital increase, shareholders' equity amounted to €7.8 million at 31 December 2023. Cash and cash equivalents stood at €7.2 million (compared to €0.4 million at 31 December 2022) versus gross borrowings of €2.4 million, resulting in net cash of €4.8 million.
OSMOSUN® actively pursued its commercial development throughout the year to ensure its future growth. Besides strengthening its teams, the Group also launched new strategic partnerships.
OSMOSUN established a strategic partnership in Morocco with renowned Moroccan industrial group PCS. The partnership will help consolidate the Group's local presence and enhance its ability to efficiently meet the specific demands of the Moroccan market. Morocco is experiencing severe water stress. The combined expertise of OSMOSUN and PCS will enable the subsidiary to take full advantage of the large investment programme for the construction of seawater desalination plants introduced by the government and the Moroccan industrial group OCP.
The Group has also stepped up its partnership strategy in order to consolidate its position in the seawater desalination market and expand in related markets. This includes the partnerships recently signed with OKwind, a specialist in smart renewable energy generation and management systems dedicated to self-consumption, and with the Emergency Architects Foundation.
As announced in its development plan, OSMOSUN® is reviewing potential acquisition targets that could enable it to gain access to new technologies and/or penetrate related markets.
The project pipeline has expanded considerably, with many small projects and an acceleration in the number of major projects.
The overall commercial pipeline therefore totalled €204 million at 31 December 2023 (compared to €166 million at 30 June 2023). It includes:
Over 180 projects in which the Company could participate have been identified5 , representing a total value of €131 million (compared to €124 million at 30 June 2023).
Taking into account contracts already signed, the development of projects under advanced negotiations and the expected recovery from contract delays in 2023, OSMOSUN® forecasts a significant return to growth in 2024.
Growing water stress worldwide continues to bolster the desalination market, highlighting the considerable need for efficient and sustainable water treatment solutions which OSMOSUN is perfectly positioned to meet.
The commercial pipeline has significantly increased however decision-making cycles regarding the allocation of major projects are getting longer and weigh on the speed of their transformation into orders. Consequently, OSMOSUN push back its medium-term guidance by one year and now aim to generate revenues of €20 million with the adjusted EBITDA margin breaking 10% in 2026 (including the realisation of part of the projects currently under advanced negotiations) and €48 million revenue in 2028 with the adjusted EBITDA margin breaking 20%.
Next event: FY 2023 results presentation meeting, 24 April 2024 at 10 a.m. Next publication: HY 2024 revenue, 23 September 2024 after market close
4 See glossary
5 See glossary
Projects in advanced negotiations: projects for which the Company has already made a firm offer and where the client is expected to sign within a few weeks (each qualified as PDD preliminary detailed design) or projects already qualified and undergoing negotiation with a maturity of several months (each qualified as PSD - preliminary summary design). As such, there is a risk that they may not be converted into a firm order.
Projects identified: projects for which not all the information is known or defined and qualification is still underway (maturity of over 12 months), as well as identified projects for which initial discussions have already been held with the client. As such, there is a risk that they may not be converted into a firm order.
Total production: sold production + inventoried production + capitalized production
Gross margin: Total production – purchase of raw materials and other supplies – change in inventory – direct sub-contracting
Adjusted EBITDA: Operating income restated for net depreciation and amortisation of intangible assets and property, plant and equipment and net provision charges/reversals + research tax credit
EBITDA: Operating income restated for net depreciation and amortisation of intangible assets and property, plant and equipment and net provision charges/reversals
Adjusted operating income: Operating income+ research tax credit
Operating free cash-flow: cash flow from operations – change in working capital – cash flow from investments
Founded in 2014, OSMOSUN® 's ambition is to become a leading player in the low-carbon water market in order to make drinking water accessible to all.
OSMOSUN® has developed a unique, patented, cost-effective, clean and sustainable solution for solar-powered battery-free seawater and brackish water desalination. This innovation makes OSMOSUN® units among the most energy-efficient and cost-effective solutions in the world. The water production capacities of its units range from 1 m3 to 50,000 m3 per day.
At 31 December 2023, 69 desalination units have been sold in 27 countries.
More information: OSMOSUN® | Create water where life is
| FINANCIAL PRESS | INVESTOR RELATIONS |
|---|---|
| Deborah Schwartz | Hélène de Watteville |
| [email protected] | [email protected] |
| +33 1 53 67 36 35 | +33 1 53 67 36 33 |
| Du 01/01/2023 Au 31/12/2023 | Du 01/01/2022 Au 31/12/2022 |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Etat exprimé en € | Brut | Amortis. Provisions |
Net | Net | |||||||
| (1) Capital souscrit non appelé |
AA | ||||||||||
| Immobilisations Incorporelles | |||||||||||
| Frais d'établissement | AB | 144 971,80 AC | 129 907,47 | 15 064,33 | 44 058,69 | ||||||
| Frais de recherche et de développement | AD | 79 429,23 AE | 79 429,23 | ||||||||
| Concessions brevets droits similaires | AF | 76 352,91 AG | 74 726,10 | 1 626,81 | 3 644,47 | ||||||
| Fonds commercial (1) | AH | Al | |||||||||
| Autres immobilisations incorporelles Avances et acomptes |
AJ AL |
AK AM |
|||||||||
| 111 | Immobilisations Corporelles | ||||||||||
| IMMOBILIS | Terrains | AN | AO | ||||||||
| Constructions | AP | AQ | |||||||||
| Installations techniques,mat et outillage indus. | AR | 3 851 484,50 AS | 2 900 355,71 | 951 128,79 | 1 578 273,47 | ||||||
| Autres immobilisations corporelles | AT | 463 668,77 AU | 203 150,80 | 260 517,97 | 269 894,61 | ||||||
| CTIF | Immobilisations en cours | AV | 660 220,80 AW | AY | 660 220,80 | 306 402,80 | |||||
| A | Avances et acomptes | AX | |||||||||
| Immobilisations Financieres | |||||||||||
| Participations évaluées selon mise en équivalence | CS | CT | |||||||||
| Autres participations | CU | 180 514,81 CV | 149 245,00 | 31 269,81 | 17 266,81 | ||||||
| Créances rattachées à des participations | BB | BC | |||||||||
| Autres titres immobilisés | BD | 200 000,00 BE | 29 300,72 | 170 699,28 | |||||||
| Prêts Autres immobilisations financières |
BF вн |
BG Bl |
|||||||||
| 98 540,00 | 98 540,00 | 94 354,00 | |||||||||
| TOTAL | (II) | 5 755 182,82 BK | 3 566 115,03 | 2 189 067,79 | 2 313 894.85 | ||||||
| Stocks et en-cours | |||||||||||
| Matieres premières, approvisionnements | BL | 511 568,36 BM | 511 568,36 | 494 441,69 | |||||||
| En-cours de production de biens | BN | BO | 8 000,00 | ||||||||
| En-cours de production de services | BP | BQ | |||||||||
| Produits intermédiares et finis | BR | BS | |||||||||
| Marchandises | BT | BU | |||||||||
| Avances et Acomptes versés sur commandes | BV | 38 876,13 BW | 38 876,13 | 5 039,90 | |||||||
| CTIF CIRCULANT | Creances | ||||||||||
| ರ | |||||||||||
| Créances clients et comptes rattachés (3) Autres creances (3) |
BX BZ |
1 480 310,55 BY 582 320,44 CA |
14 373,00 | 1 465 937,55 582 320,44 |
1 896 833,16 142 634,50 |
||||||
| Capital souscrit appelé, non versé | СВ | CC | |||||||||
| Valeurs mobilières de placement | CD | 6 066 379,98 CE | 6 066 379,98 | ||||||||
| Disponibilités | CF | 1 133 835,25 CG | 1 133 835,25 | 386 172,26 | |||||||
| Charges constatées d'avance (3) | CH | 224 415,37 | Cl | 224 415,37 | 10 829,04 | ||||||
| REGULARISATIO COMPTES DE |
TOTAL | (III) CJ | 10 037 706,08 CK | 14 373,00 | 10 023 333,08 | 2 943 950,55 | |||||
| Frais d'émission d'emprunt à étaler | (IV) | CL | |||||||||
| Primes et remboursement des obligations | (V) CM | ||||||||||
| Ecarts de conversion actif | (VI) CN | ||||||||||
| TOTAL ACTIF | CO | 15 792 888,90 1A | 3 580 488,03 | 12 212 400,87 | 5 257 845,40 | ||||||
| Renvois : (1) Dont droit au bail : | (2) Part à moins d'un an des | CP | (3) Part à plus d'un an : CR | ||||||||
| Clause de reserve | immobilisations financieres nettes : | Creances | |||||||||
| Immobilisations de propriété : * |
Stocks |
| Etat exprimé en € | UU VIIV II EVEJ Au 31/12/2023 |
UU VIIV IIKVEL Au 31/12/2022 |
||
|---|---|---|---|---|
| Capital social ou individuel (1) Primes d'émission, de fusion, d'apport Ecart de réévaluation (2) |
DA DB DC |
898 173,12 10 021 563,20 |
568 680.00 226 944.01 |
|
| Propres | RESERVES Réserve légale (3) Réserves statuaires ou contractuelles Réserves réglementées (3) Autres réserves |
DD DE DF DG |
4 750,00 | 4 750.00 |
| Capitaux | Report à nouveau | DH | -653 282,17 | -197 007,3 |
| Résultat de l'exercice | DI | -3 070 831,50 | -456 274,87 | |
| Subventions d'investissement Provisions réglementées |
DJ DK |
571 545,87 | 525 317,2 | |
| Total des capitaux propres DL | 7 771 918,52 | 672 409.12 | ||
| Autres Fonds | Produits des émissions de titres participatifs Propres Avances conditionnées |
DM DN |
358 845,55 | 497 806,77 |
| Total des autres fonds propres DO | 358 815,55 | 497 806,77 | ||
| Provisions | Provisions pour risques Provisions pour charges |
DP DO |
||
| Total des provisions DR | 0.00 | 0.00 | ||
| 11 |
| DETTES FINANCERES | DS DT DU DV DW |
2 431 520,08 4.00 |
3 051 685,40 1 500.00 |
|
|---|---|---|---|---|
| DX DY |
816 353,24 371 317.46 |
645 711,08 281 787.08 |
||
| DZ EA |
||||
| EB | 462 472,02 | 106 946,00 | ||
| 4 081 666,80 | 4 087 629,56 | |||
| Ecarts de conversion passif | ED | |||
| TOTAL PASSIF | EE | 12 212 400,87 | 5 257 845.40 | |
| (1) Écart de réévaluation incorporé au capital | 18 | |||
| Réserve spéciale de réévaluation (1959) | 1C | |||
| (2) | Dont Ecart de réévaluation libre | 1D | ||
| Réserve de réévaluation (1976) | 1E | |||
| (3) Dont réserve spéciale des plus-values à long terme * | EF | |||
| (4) Dettes et produits constatés d'avance à moins d'un an | EG | |||
| Emprunts obligataires convertibles Autres emprunts obligataires Emprunts dettes auprès des établissements de crédit (5) Emprunts et dettes financières divers Avances et acomptes reçus sur commandes en cours DETTES D'EXPLOITATION Dettes foumisseurs et comptes rattaches Dettes fiscales et sociales DETTES DIVERSES Dettes sur immobilisations et comptes rattachés Autres dettes Produits constatés d'avance (4) |
Total des dettes EC |
| Etat exprimé en € | Du 01/01/2023 Au 31/12/2023 |
Du 01/01/2022 Au 31/12/2022 |
||||||
|---|---|---|---|---|---|---|---|---|
| France | Exportation | |||||||
| Ventes de marchandises Biens Production vendue Services |
FA FD FG |
2 950 272,09 FE 52 522,44 FH |
FB | FC FF Fl |
2 950 272,09 52 522,44 |
4 601 482,59 675,66 |
||
| Montant net du chiffre d'affaires | FJ | 3 002 794,53 FK | FL | 3 002 794,53 | 4 602 158,25 | |||
| Produits d'exploitation | Production stockée Production immobilisée Subvention d'exploitation Reprises sur provisions et amortissements, transfert de charges (9) Autres produits (1) (11) |
FM FN FO FP FQ |
-8 000,00 360 782,00 218 104,31 7 100,00 10,62 |
-13 500,00 157 619,80 5 266,64 1 200,00 8,72 |
||||
| Total des produits d'exploitation (2) FR | 3 580 791,46 | 4 752 753,41 | ||||||
| Achats de marchandises Variation de stock Achats de matières et autres approvisionnements Variation de stock Autres achats et charges externes (3) (6bis) |
FS FT FU FV EW |
1 510 866,73 -17 126,67 2 139 990,65 |
2 460 632,99 -283 645,76 1 185 247,05 |
|||||
| Charges d'exploitation | Impôts, taxes et versements assimilés Salaires et traitements Charges sociales du personnel (10) Dotations aux amortissements Dotations aux provisions : |
FX FY FZ GA |
26 575,07 1 384 558,57 464 140,80 743 151,89 |
20 645,60 882 839,80 316 124,36 793 372,74 |
||||
| - sur immobilisations - sur actif circulant - pour risques et charges Autres charges (12) |
GB GC GD GE |
14 373,00 19 414,80 |
179,43 | |||||
| GF Total des charges d'exploitation (4) |
6 285 944,84 | 5 375 396,21 -622 642,80 |
||||||
| RESULTAT D'EXPLOITATION GG -2705 153,38 |
||||||||
| Opéra. comm. |
Bénéfice attribué ou perte transférée Perte supportée ou bénéfice transféré |
GH GI |
||||||
| financiers Produits |
De participations (5) D'autres valeurs mobilières et créances d'actif immobilisé (5) Autres intérêts et produits assimilés (5) Reprises sur provisions et transfert de charges Différences positives de change Produits nets sur cessions de valeurs mobilières de placement |
GJ લંત્ર GL GM GN GO |
66 379,98 14 003,00 3 004,43 |
4 001,93 | ||||
| Total des produits financiers GP | 83 387,41 | 4 001,93 | ||||||
| financières Charges |
Dotations aux amortissements et aux provisions Intérets et charges assimilées (6) Différences négatives de change Charges nettes sur cessions de valeurs mobilières de placement |
GQ GR ઉડ GT |
29 300,72 607 733,07 25 915,09 |
163 248,00 51 845,37 11 742,97 |
||||
| I otal des charges financières GU | 662 948,88 | 226 836,34 | ||||||
| RESULTAT FINANCIER | GV | -579 561,47 | -222 834,41 | |||||
| RESULTAT COURANT AVANT IMPOTS | GW | -3 284 714,85 | -845 477,21 |
| Etat exprimé en € | Du 01/01/2023 Au 31/12/2023 |
Du 01/01/2022 Au 31/12/2022 |
||
|---|---|---|---|---|
| RESULTAT COURANT AVANT IMPOTS | -3 284 714.85 | -845 477.21 | ||
| Produits | exceptionnels Sur opérations de gestion Sur opérations en capital Reprises sur provisions et transfert de charges |
HA HB HC |
191 698,35 | 225 097,80 151 218,59 |
| Total des produits exceptionnels (7) HD | 191 698.35 | 376 316.39 | ||
| Charges | exceptionnelles Sur opérations de gestion (6bis) Sur opérations en capital Dotations aux amortissements et aux provisions (6ter) |
HE HF HG |
13 874.00 | |
| Total des charges exceptionnelles (7) | нн | 0.00 | 13 874.00 | |
| RESULTAT EXCEPTIONNEL | HI | 191 698,35 | 362 442,39 | |
| PARTICIPATION DES SALARIES IMPOTS SUR LES BENEFICES |
HJ HK |
-22 185,00 | -26 760.00 | |
| TOTAL DES PRODUITS | HI | 3 855 877,22 | 5 133 071.73 | |
| TOTAL DES CHARGES | HM | 6 926 708,72 | 5 589 346.55 | |
| RESULTAT DE L'EXERCICE | HN | -3 070 831,50 | -456 274,82 |
| FLUX DE TRÉSORERIE LIÉS À L'ACTIVITÉ | 2 023 | 2 022 |
|---|---|---|
| Résultat net | -3 070 832 | -254 160 |
| + Amortissements et provisions | 772 823 | 956 621 |
| - Subvention d'investissement viré au résultat | -191 698 | -151 219 |
| - Plus-values de cession, nettes d'impôt | ||
| + Moins-values de cession, nettes d'impôt | ||
| = Marge brute d'autofinancement | -2 489 707 | 551 243 |
| - Variation du besoin en fonds de roulement lié à l'activité | -342 197 | 672 358 |
| Stocks et en-cours | 9 127 | 270 146 |
| Créances clients | -416 523 | -556 372 |
| Autres créances | 473 522 | -365 082 |
| Comptes de régularisation Actif | 213 586 | 81 066 |
| Fournisseurs et comptes rattachés | -170 642 | -193 331 |
| Autres dettes | -95 741 | 1 513 878 |
| Comptes de régularisation Passif | -355 526 | -77 946 |
| Flux net de trésorerie généré par l'activité (A) | -2 147 510 | -121 116 |
| FLUX DE TRÉSORERIE LIÉS AUX OPÉRATIONS D'INVESTISSEMENT | ||
| Acquisitions d'immobilisations | 633 623 | 513 777 |
| Corporelles et incorporelles | 429 437 | 503 985 |
| Financières | 204 186 | 9 792 |
| Cessions d'immobilisations, nettes d'impôts | 0 | 0 |
| Corporelles et incorporelles | ||
| Financières | 0 | |
| Flux net de trésorerie lié aux opérations d'investissement (B) | -633 623 | -513 777 |
| FLUX DE TRÉSORERIE LIÉS AUX OPÉRATIONS DE FINANCEMENT | ||
| Dividendes versés aux actionnaires | ||
| Subventions d'investissements et avances conditionnées | 98 936 | -182 765 |
| Augmentations de capital en numéraire | 10 124 112 | |
| Émissions d'emprunts | 0 | 600 000 |
| Remboursements d'emprunts | 627 872 | 199 422 |
| Flux net de trésorerie lié aux opérations de financement (C) | 9 595 176 | 217 812 |
| Variation de trésorerie (A + B + C ) | 6 814 043 | -417 081 |
| Trésorerie à l'ouverture (D) | 386 172 | 803 253 |
| Trésorerie à la clôture (A + B + C + D) | 7 200 215 | 386 172 |
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