Published On: November 3rd, 2022
Carbonxt Group Ltd (ASX: CG1) (“Carbonxt” or the “Company”) releases its September 2022 quarterly update, highlighting all the key activity areas of the company. Read on.
Customer receipts
Customer receipts increased by 19% compared to the previous quarter which garnered AUD 4.1 million, reflecting steady & strong demand for the product. The receipts also increased due to the payments received from customers billed in prior months. Customer receipts in this quarter are AUD 5.1 million, considerably higher than the corresponding quarter (AUD 4.8 million).
Product revenue
Activated carbon pellets revenue decreased by 5% on a QoQ basis and by 26% compared to the same quarter in the previous year. The decrease was due to reduced demand from Carbonxt’s largest customer. Whereas, Powdered activated carbon revenue increased by 17% on a QoQ basis due to increased demands from their largest industrial customer.
Cash inflows and outflows
Carbonxt Group Ltd had an inflow of AUD 0.5 million, which is an AUD 1.6 million positive turnarounds from the previous quarter. The cash inflow is due to high customer receipts from quarterly sales, and sales made in the last quarter with longer payment terms.
Operating and product manufacturing costs increased by 13% from the previous quarter due to higher utility and freight costs. To offset this increase, Carbonxt will negotiate new sales contracts on an origin-pricing basis to minimize exposure to volatility in freight pricing.
CG1 received an additional AUD 0.2 million grant for its thriving technology developments addressing the Florida Red Tide mitigation.
Net cash inflow in the quarter was AUD 0.9 million, made up of proceeds from shares issued and offset by a lease payment.
Net cash outflow from investing activities was AUD 0.3 million, which is reflected in new product development and enhancements for increasing the efficiency of the Black Birch PAC facility.
Revenue and operating cash flow
The company witnessed increased demand for powdered activated carbon and activated carbon pellets during the quarter, owing to the growing strength of the US economy and the Company’s reputation for providing remarkable environmental solutions and services.
Black Birch Facility operated near-capacity to meet demands.
The Ardent Hills facility operated in full capacity of 24-hour shifts for the production of 9mm pellets to meet the increasing demand from CG1’s largest pellet customer.
The Black Birch facility also operated near capacity, attributing the demand from existing and new customers. As a result, Carbonxt has planned improvements at the Black Birch facility in 2023 to increase operational capacity and flexibility.
Industrial activities
Carbonxt exhibited in two industry-leading events in the US- The Water Expo and WEFTEC.
- CG1 was selected to present information on HydRestor® technology at the Water Expo.
- At WEFTEC, Carbonxt highlighted and publicized the patented product and the new pellet plant scheduled to open in 2023.
Managing Director Warren Murphy commented on the activities, “Carbonxt is delighted to note the positive cash turnaround and the increased pricing achieved across various contracts this quarter. The contract renewal with Wisconsin Public Service reflects the outstanding solutions developed here at Carbonxt. Demand for emission and pollution reduction technologies remains high, and Carbonxt is a forerunner in the market with existing products and a pipeline of new technologies.”
Visit the official website now to learn more about Carbonxt’s products and activities.
Also Read: Carbonxt Group Ltd (ASX: CG1) Announces Extension of Partnership With WPS
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