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Jun 30, 2024
Danimer Scientific Q2 2024 Earnings Report
Reported results in line with expectations, impacted by Starbucks' straw business reapportionment, but retained 100% of the business and made adjustments to annual guidance.
Key Takeaways
Danimer Scientific reported Q2 2024 revenues of $7.6 million, down from $12.9 million in Q2 2023, primarily due to the reapportionment of Starbucks' straw business and a loss of PLA orders from customers affected by the conflict in Ukraine. The company is forecasting annualized PHA revenues to more than triple by the end of Q2 2025 and has retired $6.1 million of convertible notes.
Revenues for Q2 2024 were $7.6 million, a decrease of $5.3 million compared to Q2 2023.
PHA revenue decreased by $2.5 million year-over-year, mainly due to Starbucks' straw business changes.
PLA revenue decreased by $2.4 million due to lost orders from customers affected by the conflict in Ukraine.
The company completed a pro-rata warrant dividend transaction, retiring $6.1 million of convertible notes.
Danimer Scientific
Danimer Scientific
Danimer Scientific Revenue by Segment
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CapyFin.com Forward Guidance
The company has adjusted its full-year Adjusted EBITDA guidance to a range of $(30) million to $(35) million and expects year-end liquidity to be in the range of $15 million to $20 million. They forecast annualized PHA revenues to more than triple by the end of the second quarter of 2025.
Positive Outlook
- Annualized PHA revenues are forecasted to more than triple by the end of Q2 2025.
- Full-year capital expenditures are anticipated to remain in the previously disclosed range of $8 million to $10 million.
- Existing customer relationships and their indicated volumes will drive revenue growth.
- 20-million-pound cutlery award is expected to reach full run rate in mid-2025.
- Pro-rata warrant dividend transaction provides balance sheet deleveraging opportunity.
Challenges Ahead
- Starbucks' reapportionment of their Nodax-based straw business continues to impact revenue.
- Headwinds from the Starbucks reapportionment are expected to continue into the third quarter.
- Full-year Adjusted EBITDA is now expected to be in the range of $(30) million to $(35) million.
- PLA revenue decreased due to a loss of orders from customers affected by the conflict in Ukraine.
- Second quarter results were consistent with expectations including the impact of the reapportionment related to the Starbucks straw resin business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income