Canada's EcoSynthetix swings to Q2 loss as sales fall

Overview

• Canada renewable chemicals firm's Q2 sales fell 9% yr/yr due to lower volumes

• Company posted Q2 adjusted EBITDA loss of $0.2 mln and net loss of $0.4 mln

• Repurchased and cancelled 61,500 shares in Q2; cash and term deposits at $29.1 mln

Outlook

• Company says macroeconomic conditions continue to weigh on pace of customer adoption

• EcoSynthetix sees trial activity with global producers as encouraging and ongoing

• Company expects addressable demand to support growth as adoption accelerates

Result Drivers

• MACROECONOMIC PRESSURES - Co said challenging macroeconomic conditions in end markets led to lower sales volumes

• WOOD COMPOSITES DEMAND - Key strategic account in wood composites prioritized manufacturing efficiency amid softer end-market demand, reducing volumes

• PULP SEGMENT INCENTIVES - Narrow price spread between hardwood and softwood pulp reduced economic incentive for premium products despite high trial success rates

Company press release: ID:nCNWl3S6fa

Key Details

Reuters Recommended Reads

• July 28 - Canada's Biorem Q2 revenue rises 66% on project execution

• July 28 - UK chemicals maker Croda beats interim profit market view on solid demand, price hikes

• July 28 - Greif fiscal Q3 revenue beats estimates on higher prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)