Afyren has announced the completion of the construction phase of the Afyren Neoxy plant, its industrial commissioning and the annual financial results for the year ending December 31, 2021.
Located in Carling-Saint Avold in the Grand Est region, Afyren Neoxy is the first industrial-scale plant for the production of biobased carboxylic acids from sugar beet co-products. All the equipment has been delivered and the acceptance and start-up process is underway in accordance with the planned schedule. These tests will be spread out over several weeks for gradual commissioning of the different equipment, a test phase that will prepare for the launch of production.
Sales in 2021 amount to €3.04 million, against €3.99 million in 2020. The sales are essentially composed of income from the various contracts concluded with Afyren Neoxy.
The company recorded a net loss in 2021, amounting to €3.61 million (compared to €2.13 million in 2020), as a consequence of the acceleration of investments prior to the operation of the industrial units.
Cash and cash equivalents amounted to €67.13 million as of December 31, 2021, thanks to the capital increase within the framework of Afyren’s IPO in September 2021, which raised nearly €70 million.
Following several months of reflection and consultation with its internal and external stakeholders, Afyren and its board of directors defined and formalized its purpose in early 2022, "We enable low-carbon, circular industry by providing biobased solutions built with our partners to benefit the environment."
In 2021, Afyren already initiated a first external rating with Gaïa Rating, a subsidiary of EthiFinance, and obtained an "Advanced" score of 55/100. After all of the work carried out in 2021, including the implementation of the purpose and materiality, the placement of a person in charge of ESG in Afyren's Executive Committee, as well as the creation of a code of conduct for its suppliers, Afyren obtained, at the beginning of 2022, a rating of 66/100, putting the company at “Advanced+”.
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The commissioning of the first Afyren Neoxy plant will enable the delivery of the first batches from 2022. In parallel, Afyren is currently studying the implementation of plant n°2 for commissioning at the end of 2024, notably by analyzing different scenarios for several raw materials, in North America and Asia, by ongoing discussions with potential partners and by evaluating the structuring of the financing.
On a longer-term basis, and with two complementary plants (plant n°2 and n°3), Afyren reaffirms its financial outlook and objectives:
- Have an annual production capacity of more than 70,000 tons by 2026.
- Deliver positive adjusted current EBITDA margin for Afyren Neoxy by 2023, and a positive recurring EBITDA margin for Afyren by 2025.
- Achieve a recurring EBITDA margin at Group level of around 30% in 2027 with sales in excess of €150 million.
Nicolas Sordet, CEO of Afyren, said, “2021 was a transforming year for Afyren, culminating in the IPO in September. The year 2022 also promises to be full of challenges and we are pleased to have met the first one with the launch of the industrial commissioning of our Afyren Neoxy plant on the Carling Saint-Avold site, in accordance with the announced schedule and at cost. We now have the financial resources and a first industrial tool to accelerate the achievement of our Purpose, “We enable low-carbon, circular industry by providing biobased solutions built with our partners to benefit the environment”.”
Jean Saint-Donat, president of Afyren Neoxy, said, "The industrial commissioning of the Afyren Neoxy plant is a key step in the history of Afyren. We are ready to start and deliver the first batches of biobased acids developed with Afyren technology this year. We are facing this transition to industrial scale with serenity alongside the fifty or so new employees already recruited and trained, and we are confirming our deep commitment to the environment by promoting short supply and sales channels thanks to our strategic geolocation in the heart of Europe.”