- Danimer Scientific (DNMR) recently announced its second quarter 2022 results highlights. Those are the details.
Danimer Scientific (DNMR) recently announced highlights of its second quarter 2022 results. Below are the highlights.
Q2 2022 Financial Highlights
– Revenue for the second quarter was $12.7 million. Sales of PHA products increased 85% year-over-year to 61% of total revenue, compared to 29% in the second quarter of 2021.
– Gross margin was ($2.2) million, compared to $2.0 million in the second quarter of 2021. Adjusted gross margin1 was $0.2 million, compared to 4, $1 million in the second quarter of 2021. Lower adjusted gross margin was primarily due to lower earnings and lower PLA volumes at lower margin year-over-year, partially offset by higher PHA volumes at an improved margin compared to the prior year period.
– Net loss of $30.4 million included a non-cash gain of $2.0 million related to the revaluation of the Company’s private warrants for the second quarter of 2022.
– Adjusted EBITDA was ($12.9) million in the second quarter of 2022, compared to ($2.7) million in the second quarter of 2021, mainly due to lower gross profit as well as prior increases staffing and salaries to support expansion plans . The second quarter of 2022 also included approximately $1.2 million of R&D and operating expenses related to Danimer Catalytic Technologies, which the Company did not own in the prior year comparable period.
– Adjusted EBITDAR, which excludes rent expenses primarily associated with the Company’s Kentucky facility and one of the Company’s Georgia production facilities, was $(12.0) million dollars, compared to ($2.6) million in the second quarter of the prior year.
Danimer remains focused on making disciplined investments in its operating platform and infrastructure that will enable it to seize significant opportunities for its products in the years to come.
For the full year 2022, the company reaffirms its outlook for adjusted EBITDA in the range of ($45) million to ($35) million, compared to ($22.6) million in 2021. expenses must be between $175 million and $185 million, including capitalized interest, internal labor and overhead, with a year-end cash balance greater than $60 million.
Beyond 2022, the company expects its PHA-based revenues to drive a significant increase in overall company profitability. The Company remains confident in its ability to achieve its objectives by focusing on profitability and cash management.
“Our conversations with customers and our business development efforts are progressing. Our leadership position in the research and development of PHA-based resins strengthens our existing relationships while generating new interest in our best biodegradable offerings. In June, we successfully began commissioning Phase II of our Kentucky facility, which is performing better than our initial expectations. As we think beyond Kentucky, we were very pleased to recently announce our major milestone with the Department of Energy in support of our capacity expansion.
“Interest in our solutions is higher than ever and we are currently anticipating several significant customer product launches in Q4 2022 and 2023. In the near term, many of our existing and potential customers are facing to supply chain bottlenecks, inflation and economic uncertainty that impacts the timing of orders and deliveries. We look forward to continuing to work closely with our customers. to seize the huge long-term opportunity to transform the plastics market.”
– Stephen E. Croskrey, Chairman and CEO of Danimer