Geelong-based advanced manufacturer Carbon Revolution Limited has released its first half results for the financial year 2023 with revenue up by 2.3 per cent to $18 million compared to the prior period, reflecting a higher average wheel price.
The increase was primarily due to a higher average wheel price as a result of the product mix, with total wheels sold of 6,181 being 5 per cent below the prior corresponding period (PCP).
The company also saw a spike in contribution margin by 114 per cent to $1.5 million.
Carbon Revolution said the team concentrated on quality, throughput, and efficiency improvements during the first half while plant facilities continued to operate as scheduled.
“This improvement in contribution margin was due to a favourable product mix. As production ramps we anticipate scale to drive further contribution margin improvement” company CEO Jake Dingle said.
The company said it increased production in preparation for the growth anticipated in 2023.
The Corvette Z06 wheel production has resumed, and the new premium SUV wheel’s initial ramp-up is currently underway. Soon after, in the middle of 2023, the 2024 Mustang Dark Horse Wheel program will get underway.
Meanwhile, cash from operating activities increased by $33.3 million to $5.3 million following higher customer receipts due to the sales ramp-up for the Ferrari and Corvette programs in late FY22.
Successful customer liquidity initiatives resulted in lower receivables improved working capital, and higher operating grants, including grant advances to help with short-term liquidity, according to the company.
The company’s EBITDA loss excluding capital raising costs also improved by 11.5 per cent to $18.5 million.
In his forward-looking statement, Dingle said Carbon Revolution is anticipating a stronger second half for FY23 with a new program in production utilising Phase 1 of the Mega-line to further improve operational efficiency.
“We have a funding plan with both secured and proposed liquidity improvement initiatives and a proposed new debt facility which should enable the Company to complete the merger and US Listing,” Dingle added.
