Pyrum Innovations reports higher revenues for Q1 2024 while dipping deeper into the red

End-of-life tyre recycler Pyrum Innovations AG has published its Q1 2024 interim consolidated report. Sales revenues in the first three months of 2024 amounted to €336,000, around 54 per cent higher than the same period last year. The company also reports that expansion of its main plant in Dillingen, Germany is progressing as planned.

As a result of this on-schedule expansion, Pyrum shares that capitalised own work amounted to €1,615,000, down year-on-year from €2,958,000. The decrease corresponds to the lower cost of materials required to produce the capitalised own work as the degree of completion of the plant expansion increases.

Due to the lower level of own work that can be capitalised, total output decreased by around 32 per cent year-on-year, to €2,177,000. At €148,000, other operating income was around 85 per cent higher than in the same period last year. The consolidated result for the period was €-2,684,000, compared with €-2,237,000 in Q1 2023. Available liquidity as of 31 March 2024 was €7,065,000 (31 December 2023: €4,275,000).

Expansion on finishing straight

At the end of May, Pyrum started up the third reactor at its main plant in Dillingen. The company thus sees itself “on the finishing straight” in regard to the site’s expansion. By transferring the knowledge gained from the commissioning of TAD 2 and optimising a few minor points, Pyrum was able to smoothly bring TAD 3 into operation. The third line is currently already producing at 400 kg/h, which corresponds to a throughput of around 55 per cent. The company will gradually increase throughput to 75 per cent over the next three months.

TAD 2 continues to operate unchanged with a throughput of 75-80 per cent. Pyrum has received the first imported components for the jet mill that it will use to process material from TAD 2 and TAD 3; these are currently in storage. Due to the technical interaction with the pelletising plant, assembly is still planned for the end of 2024.

Extended REACH registration

As part of the production expansion in Dillingen, Pyrum has extended the REACH registration for its thermolysis oil produced from end-of-life tyres. The extension of the registration entitles Pyrum to produce and import more than 1,000 tonnes of thermolysis oil per year. The company carried out the expansion early in order to avoid any limitation once TAD 2 and TAD 3 production volumes increase.

“We are very proud of the successful commissioning of the third reactor at our main plant in Dillingen,” says Pascal Klein, chief executive officer of Pyrum Innovations AG. “This development marks an important milestone on the home stretch of our site expansion and gives our ongoing projects a positive tailwind. We look to the future with great confidence and look forward to further successful steps.”

Full-year outlook

For the full year 2024, Pyrum’s management continues to expect Group and AG (Aktiengesellschaft, or public limited company) sales to be between €3.0 million and €4.0 million and total output to be between €25 million and €30 million. In view of the high level of investment activity and the planned further expansion of personnel in 2024, the team anticipates that earnings before interest and taxes (EBIT) for the Group will be in a range of €-11.0 million to €-13.0 million and for Pyrum Innovations AG in a range of €-10.0 million to €-12.0 million.

Read further details about Pyrum Innovations’ Q1 2024 financial performance here.