Carbonxt Group Limited (ASX: CG1) (Carbonxt or “Company”) is a clean-tech company specializing in activated carbon products and pellets for industrial air purification, wastewater treatment, and other liquid and gas-phase markets. Carbonxt has announced the results of FY22.
The highlights of Carbonxt’s announcement are discussed below:
Revenue, Margins, and Operation Costs
Carbonxt has recorded annual revenues of AUD 18.4M (49% higher than FY21). Carbonxt’s total revenue was up by 49%, from AUD 12.3M in FY21 to AUD 18.4M in FY22.
Carbonxt had an annual gross margin of 34% (an increase of 28% from the FY21 annual gross margin). The increase was due to operational improvements and better sales due to higher customer demand. Furthermore, the higher natural gas prices in FY22 were also attributed to the increased sales, as customers transitioned to make their operations more favorable to the increasing prices.
Shipping costs as a percentage of revenue were down to 9% in FY22 (compared to 11% in FY21). The decrease was due to increased demand from customers located closer to Carbonxt’s facilities. The total operating costs were AUD 5.1M, 16% lower than the previous year due to the implementation of a cost reduction program.
Activated carbon pellets:
Activated carbon pellet sales increased by 87% from FY21 and accounted for 70% of the total revenue and 55% of the total sales volume. Carbonxt provided over 4,000 tonnes of activated carbon pellets to the Company’s largest customer (compared to the 1,600 tonnes in FY21).
Powdered activated carbon:
Powdered activated carbon’s revenue remained unchanged from FY21, accounting for 30% of the total revenue and 45% of the total sales volume. In January 2022, Carbonxt commenced deliveries to an industrial company. Under the contract, the volumes are expected to increase by 3,000 tons per year. To support this demand, the PAC facility has transitioned to 24-hour shifts in Spring 2022.
Other Carbonxt News
Carbonxt signed a term sheet with KCP in early FY23 for 50% ownership of the activated carbon plant in Kentucky, United States. The plant will be operated by KCP. The cost of production at the new plant is expected to be less due to access to higher quality feedstock, low-cost power sources, and shared services with KCP.
Carbonxt is currently the only activated carbon pellet developer and supplier located in the United States. As a result, Carbonxt expects that broader market conditions as well as a 100% increase in pellet sales volumes will drive revenue.
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