Avantium Announces 2022 Results: Strong progress on delivering on our strategic goals and the commercialisation of our proprietary technologies
AMSTERDAM, 22 March 2023, 07:00 hrs CEST – Avantium N.V. (Euronext Amsterdam and Brussels: AVTX), a leading technology company in renewable chemistry, today reports its 2022 full-year results.
Key Business Progress in 2022:
- For Avantium Renewable Polymers, 2022 was a breakthrough year:
- The conditions for Financial Close were achieved, including a €90 million Debt Facilities Agreement, which allowed Avantium to begin construction of the FDCA (furandicarboxylic acid) Flagship Plant;
- Construction of the FDCA Flagship Plant in Delfzijl is progressing well, with commercial production set to start in 2024;
- Eight new offtake agreements for FDCA and PEF (polyethylene furanoate) were secured in 2022 and early 2023 with well-known brand owners and industry leaders including Carlsberg, LVMH, AmBev and Henkel. In addition, Avantium announced this morning that it has signed an offtake agreement with Kvadrat. In total 14 offtake agreements for a wide range of applications have been signed;
- The first industrial technology license agreement for YXY® Technology was signed with the US-based company Origin Materials ahead of original expectations;
- In Avantium Renewable Chemistries, operations of Ray Technology™ are back on track after a temporary pause in 2021 and preparations to scale-up to a commercial facility for plantMEG™ (mono-ethylene glycol) and plantMPG™ (mono-propylene glycol) have begun;
- For Volta Technology, two demonstration units have been successfully trialled at industrial sites in Germany and Greece;
- Avantium R&D Solutions (formerly known as Avantium Catalysis) has adopted a new growth strategy focusing on R&D solutions for sustainable chemistry, in addition to its existing offering; total revenues for Avantium R&D Solutions improved by 13%, compared with 2021, to €11.3 million.
Key Financial Developments in 2022:
- Total revenues increased by 63% to €17.8 million (FY 2021: €10.9 million), predominantly due to the payment of €5.0 million received from Origin Materials in 2022 as part of the transaction announced in February 2023. Other Income from government grants increased by 14% to €7.6 million (FY 2021: €6.7 million), primarily related to the start of construction of the FDCA Flagship Plant;
- Net operating expenses were €43.1 million in 2022 (FY 2021: €33.7 million), increasing primarily due to the planned increase in FTE during 2022, costs associated with new patent filings, and legal and advisory expenses related to Financial Close, the Equity Raise, and the Debt Facilities Agreement entered into for the financing of the FDCA Flagship Plant;
- Cash at 31 December 2022 was €64.9 million (31 December 2021: €34.9 million):
- The increase in the cash position was due to the successful capital raise of €41.6 million (net proceeds) by means of a public offering of shares in Avantium N.V. in April 2022, a €20.0 million cash investment in Avantium Renewable Polymers B.V. from Bio Plastics Investment Groningen in March 2022, and the first drawdown of €15.0 million under the Debt Facilities Agreement in November 2022;
- Net cash outflow in 2022 was €46.6 million (FY 2021: €18.1 million), primarily related to planned investments in the engineering and construction of the FDCA Flagship Plant;
- The loss for the period was €31.6 million (2021: €24.4 million).
Tom van Aken, Chief Executive Officer of Avantium, commented: “I am very proud of what Avantium has accomplished in 2022, a transformational year for the company – evolving from a company primarily focused on R&D towards one with large-scale manufacturing and commercialisation capabilities. The start of the construction of our FDCA Flagship Plant was a significant milestone, and will enable the commercial launch of our plant-based, recyclable and high-performance polymer PEF to customers worldwide. We continue to see robust demand for FDCA and PEF as illustrated by us signing nine new FDCA and PEF offtake agreements with major brand owners for a range of applications. The Flagship Plant is a key component of our YXY® licensing strategy and the progress in constructing this facility was an important catalyst in establishing the recently announced transactions with Origin Materials to accelerate the mass production of FDCA and PEF. We have now clearly demonstrated the exciting potential to license our proprietary technologies and continue to make encouraging progress in this regard.”