Advanced manufacturer Carbon Revolution Limited has announced its results for the financial year ended 30 June 2020, which showed that the company has enjoyed a record year for sales during what was a challenging global environment in the second half of the year.
According to the company’s announcement, its FY20 revenue of $38.9m exceeded the prior year by 158%, with sales from new wheel programs contributing 38% of wheel sales revenue in FY20.
Earnings before interest, tax, depreciation, and amortisation was a loss of $17.1 million – a 22% improvement compared with the prior year loss of $22.4 million – with a loss after tax of $114 million (FY19 $27.2 million) which includes $87.2m of non-cash items associated with a one-off IPO related items of $87.2 million.
The company, which announced three new wheel programs during the year, reported that the average price per wheel increased by 9% to $2,643 due to changes in the sales mix and a weakening of the Australian dollar relative to the Euro.
Its net debt decreased by $68.9 million to a net cash position of $15.2 million at June 2020 ($33.9 million of cash and $18.7 million of debt).
Carbon Revolution also continued to invest strongly in R&D to improve the product technology, material systems and to bring production processes to full industrialisation.
In addition to fast-tracking the new Fascia technology (which will improve finished wheel aesthetic quality and allow for significant reduction in labour hours per wheel), the company has also progressed the design of wheels for the CH-47 (Chinook) Helicopter for the Australian Defence Force.
Commenting on the 2020 results, Carbon Revolution CEO Jake Dingle said:
“The past financial year has been a significant one in Carbon Revolution’s history.”
“We successfully listed on the Australian Securities Exchange in November 2019 and continued to build customer relationships with the addition of three new wheel programs and significant progress with the engineering and development of a new contract with an Asian vehicle manufacturer.
“We also made significant progress in our production processes, which are contributing both to manufacturing efficiency and product quality.”
According to him, the company expects to deliver strong sales growth next year.
“Carbon Revolution builds a unique and highly sophisticated product, and it has a strong team and culture which we are confident will deliver long term, profitable growth for our shareholders,” Mr Dingle said.
“We believe our long-term growth prospects remain strong.”
