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Jun 30, 2021
Danimer Scientific Q2 2021 Earnings Report
Reported a revenue increase driven by PHA production scale-up and R&D projects, while facing gross profit decline due to elevated fixed-cost absorption.
Key Takeaways
Danimer Scientific announced Q2 2021 results with a 22% increase in revenue to $14.5 million driven by PHA production and increased R&D revenue. Net income was $39.2 million, including a $58.7 million non-cash gain from warrant remeasurement. The company completed the acquisition of Novomer in August, expecting it to reduce capital expenditures and enhance product offerings.
Revenues increased 22% to $14.5 million, driven by PHA production scale-up.
PHA-based products expanded to 29% of total revenue, compared to 7% in Q2 2020.
Net income was $39.2 million, including a $58.7 million non-cash gain from warrant remeasurement.
Acquisition of Novomer completed in August, expected to reduce capital expenditures and enhance product offerings.
Danimer Scientific
Danimer Scientific
Danimer Scientific Revenue by Segment
Revenue by Segment
Products Revenue
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CapyFin.com Forward Guidance
Danimer Scientific expects to continue accelerating investments in headcount and technology, including Novomer, to support production capacity expansion and sales growth. Improved operating rates from the Kentucky debottlenecking are expected to contribute to Adjusted EBITDA and cash flow in 2021, with second-half results weighted towards Q4. Full-year capital expenditures are projected to be between $125 million and $150 million, including post-acquisition investments in Novomer.
Positive Outlook
- Improved operating rates from Kentucky debottlenecking to contribute to Adjusted EBITDA and cash flow.
- Expected acceleration of investments in headcount and technology to support growth.
- Second-half results expected to be weighted towards the fourth quarter.
- Continued planning for state-of-the-art PHA greenfield facility in Bainbridge, Georgia.
- Construction of the Kentucky plant expansion continues on schedule.
Challenges Ahead
- Unspecified risks and uncertainties that could affect the company's financial results.
- Overall level of consumer demand on its products.
- General economic conditions and other factors affecting consumer confidence, preferences, and behavior.
- Disruptions and other impacts to the company’s business, as a result of the COVID-19 global pandemic
- Fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations
Revenue & Expenses
Visualization of income flow from segment revenue to net income