US-based biopolymer manufacturer Danimer Scientific has recorded revenues of $11.92m in the first quarter (Q1) of the fiscal year (FY) 2023.
This reflects a decline from the revenues of $14.74m registered during the quarter period of FY22.
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Out of the total revenues recorded in Q1 FY23, the company’s services revenues stood at $0.83m and product revenues were $11.09m.
Danimer has attributed this decline of $2.1m in the product revenues to an ‘unfavourable’ shift in the timing of polyhydroxy acid (PHA)-based resin sales.
Meanwhile, the fall in services revenues from $1.5m in Q1 FY22 was due to the long-term funded research and development projects that were completed over the course of the year.
Danimer’s associated customers are now moving to commercialise those project investments.
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By GlobalDataDanimer CEO and chair Stephen E Croskrey said: “We completed the first quarter in line with our expectations.
“Since the close of the quarter, we have gained increased visibility into a small number of new commercial opportunities that, if captured in full, would require the lion’s share of our remaining capacity.
“This includes resins for straws and cutlery, two important categories. Additionally, we were pleased to launch, in conjunction with TotalEnergies Corbion, a new PHA-based resin for single-use coffee pods, an additional significant opportunity.
“We have growing confidence in our strategic and competitive position and continue to expect to finish 2023 on a strong pace.”
For the reported quarter, which ended on 31 March 2023, the company’s gross profit was $6.3m, compared to $1.3m in Q1 FY22.
This resulted in an adjusted gross profit of $1.0m, while the same was $2.0m in Q1 FY22.
The net loss for the first three months of the year totalled $36.6m.
Danimer’s adjusted earnings before interest, tax, depreciation and amortisation improved to $8.9m in Q1 FY23.
The company said this is due to the expense controls implemented across various areas of the business.
