AFYREN announces its 2024 full-year financial results

AFYREN announces its 2024 full-year financial results

• Operational progress towards continuous production
  • Intensification of production campaigns in 2024 and early 2025
  • Production and marketing of several dozen tons of acids
  • Validation of product quality delivered to customers and prospects
• Good cost control and financial support to AFYREN NEOXY start-up phase
  • Underlying net loss and cash burn stable in 2024 vs. 2023, excl. plant financing
  • Non-dilutive financing of plant start-up by AFYREN and its financial partners
• Targeting continuous production by 2025, and development of future plants to resume
  • AFYREN NEOXY: continuous production in 2025 and EBITDA breakeven after a few quarters
  • This milestone will enable developments to resume with a view to achieving operational and financial targets for 2028 and beyond.

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Clermont-Ferrand/Lyon, March 27, 2025, at 07:30 am CET - AFYREN, a greentech company offering manufacturers bio-based, low-carbon ingredients through a unique fermentation technology based on a circular model, today announced its audited full-year financial results for the year ended December 31, 2024, as approved by the Board of Directors on March 26, 2025.

Nicolas SORDET, Chief Executive Officer of AFYREN, stated: "In a complex environment, we are pleased to present the significant and concrete industrial and commercial progress of the last quarters. These reinforce our confidence both in our ability to continuously manufacture products to the required quality and the relevance of our offering. In contrast to the current short-termism, our plant aims to offer a long-term solution for our customers by reducing the environmental impact of critical ingredients, while being economically efficient. In 2025, AFYREN's driving forces are mobilized for the start of continuous production at our plant and the continuation of deliveries in industrial quantities.”

RECENT MILESTONES

Update on AFYREN NEOXY's progress

Over the second half of 2024, AFYREN NEOXY produced and sold several dozen tons of biobased acids, a good dynamic that has been pursued and intensified in the first months of 2025.

These acids were invoiced to customers after validation of their quality in the most demanding markets. In parallel with these initial sales, volumes were sent to new prospects for validation, a classic process in many applications. To date, a dozen customers in the food, feed, flavors & fragrances and nutraceuticals sectors have validated the quality of the acids produced by the plant, and most are ready for recurring supplies of industrial quantities of products, upon availability. These renewed commitments prove the relevance of AFYREN's solutions.

The aim over the coming weeks is to pursue production campaigns. As described in the January 2025 activity update^[1], these will enable us to fine-tune the operating conditions that will ensure the stable operation of the biorefinery over the long term, while producing finished products of the quality expected in its strategic markets.

AFYREN confirms that it is targeting continuous production in 2025, as announced in January 2025^[1]. Break-even (positive current EBITDA) is targeted after a ramp-up period of a few quarters.

To support AFYREN NEOXY through this start-up period, several non-dilutive financing options have been used. AFYREN contributed to the financing of its subsidiary through a €10 million shareholder loan. AFYREN NEOXY also benefited from €19 million in bank financings from Bpifrance (Prêt Nouvelle Industrie) and its banking partners (sustainability-linked loan). In 2024, €12 million was released and €7 million is to be released at a later stage, subject to conditions.

Ongoing industrial development in France and abroad

In 2024, AFYREN's operational teams gave priority to the production start-up of AFYREN NEOXY.

Discussions are continuing with Mitr Phol, Thailand's leading group in the production of cane sugar and its derivatives, concerning the joint venture intended to carry out the plant project in Asia.

Preliminary analyses were carried out in parallel to increase AFYREN's production capacity in France and in new geographical areas. In particular, an extension of the AFYREN NEOXY plant is being reviewed, to capitalise on existing facilities and to provide better controls over costs.

Concrete progress on the CSR roadmap ^[2]

Integral to AFYREN's value proposition and supported by an ambitious corporate governance, CSR is at the heart of the Company’s strategic orientations.

The 2024 achievements include:

• The signing of the Responsible Care^® Global Charter, attesting to the commitment of all AFYREN sites;
• The success of the Group's second HR barometer (AFYREN Global People Survey), reflecting team commitment with a 98% participation rate;
• An improvement in the ECOVADIS rating - one of the world's most recognized independent CSR assessment platforms - and the award of a silver medal. The score of 68/100 positions AFYREN in the top 15% of companies in terms of sustainable development, and in the top 8% of its industrial sector;
• A further increase in EthiFinance's extra-financial rating to 85/100 (Platinum Level), highlighting AFYREN’s efforts to put CSR considerations at the heart of the corporate strategy;
• The publication of the first Sustainability report, deliberately drawn up in the spirit of ESRS (Environmental, Social, and Governance Reporting Standards). This document is available and can be consulted and downloaded in a dedicated section of the Company's website: https://afyren.com/en/purpose/.

These achievements can help AFYREN access financings. In 2024, AFYREN secured its first sustainability-linked loan for its subsidiary AFYREN NEOXY. The loan's credit margin will be adjusted according to objectives relating to the Company's social pillar, CSR rating and environmental impact.

A SOLID FINANCIAL POSITION

Stable loss reflecting tight control of operating expenses

Revenue in 2024 amounted to €2.9 million, compared with €3.4 million in 2023. Revenue mainly comprises income from patent licensing and know-how, stable compared with 2023, and various administrative and technical service contracts with AFYREN NEOXY. The latter are down compared with 2023, due to the decline in administrative services, which are now largely provided by on-site teams.

Net current operating expenses^[3] amounted to €8.9 million, compared with €9.3 million at the end of 2023, a €0.4 million decrease mainly due to:

• an increase in other income (+€0.1 million), linked to operating subsidies;
• payroll costs down by €0.3 million, due to lower share-based compensation costs. The average number of full-time equivalents (FTE) rose slightly over the year (+4) to 44^[4];
• purchases and other external charges were stable, reflecting continuous cost control.

Within operating expenses, research and development expenses recognized as costs reached €1.9 million in 2024, in line with 2023.

Current operating loss came to €(6.1) million, with tight control of operating expenses partially offsetting the decrease in revenue.

Net financial result improved by €0.75 million, thanks to financial income from the investment of cash and financing granted to the subsidiary AFYREN NEOXY.

The Group's share in AFYREN NEOXY's net loss amounted to €(5.6) million at the end of 2024, compared with €(4.8) million at the end of 2023. This result is mainly due to the plant's operating expenses, in the absence of meaningful revenue.

Net loss was €(9.75) million at the end of 2024, compared with €(9.59) million at the end of 2023, reflecting an overall stable cost structure pending a positive contribution from continuous production at the AFYREN NEOXY plant.

Cash position of €33 million

At the end of 2024, AFYREN had a solid balance sheet and equity of €52.7 million, with the decline from 2023 attributable to the net loss for the year.

Total financial debt was limited to €3.3 million^[5] at the end of 2024, compared with €4.8 million at the end of 2023; the decrease stems from loan repayments during the year.

AFYREN had a solid cash position of €33.5 million as of December 31, 2024, compared with €49.6 million as of December 31, 2023. Annual cash consumption stands at around €6 million, of which €7 million linked to AFYREN's operations, partly offset by €1 million proceeds from cash deposits. In addition, AFYREN granted a €10 million shareholder loan to its subsidiary AFYREN NEOXY.

COMPANY OUTLOOK

As of the date of this press release, AFYREN is aiming for continuous production of the AFYREN NEOXY plant, the first industrial-scale production unit to use its technology.

Reaching this milestone and the return on experience from AFYREN NEOXY will enable the resumption of development work for two plant projects: one in Thailand targeting the Asian market, and the extension of the French plant to meet demand in Europe.

AFYREN confirms that it is targeting:

• three production units with a combined installed capacity of around 70,000 tons of acids by 2028, with at least two of them producing continuously (including the existing AFYREN NEOXY plant^[6]). These units will also produce a high value-added fertilizer, ensuring the circularity of the model.

With the continued production of the three units at full capacity, AFYREN targets:

• cumulative production revenue of more than €150 million;
• current EBITDA margin at Group level of around 30%.^[7]

2024 FINANCIAL REPORT AVAILABILITY

The Company will make its 2024 Annual Financial Report in French available to the public and file it with the Autorité des marchés financiers in the coming days. An English version will follow shortly.

About AFYREN

AFYREN is a French greentech company, founded in 2012, focused on providing innovative, sustainable solutions to reduce reliance on fossil-based resources. AFYREN’s proprietary, nature-inspired fermentation technology valorizes local biomass from non-food agricultural co-products to produce 100% biobased, low-carbon carboxylic acids. The company’s sustainable solutions address decarbonization challenges in a wide variety of strategic sectors, including human and animal nutrition, flavors and fragrances, life sciences, materials science, plus lubricants and technical fluids. AFYREN’s competitive, plug-and-play, circular technology enables manufacturers to adopt sustainable solutions without modifying production processes.

The company’s first industrial plant, AFYREN NEOXY, a joint venture with Bpifrance's SPI fund, is based in the Grand-Est region of France, serving primarily the European market. AFYREN is also pursuing a project in Thailand with a global leader in the sugar industry and is building its presence in the Americas, based on existing distribution agreements.

At the end of 2024, AFYREN employed 130 people across sites in Lyon, Clermont-Ferrand and Carling Saint-Avold. Committed to continuous innovation, the company invests 20% of its annual budget in R&D to further develop the range of sustainable solutions.

AFYREN is listed on Euronext Growth^® Paris since 2021 (ISIN code: FR0014005AC9, ticker: ALAFY).

For more information, visit www.afyren.com and follow us on LinkedIn.

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Financial calendar

APPENDIX

1. Income statement

2. Balance sheet

3.Cash-flow statement (simplified)

^[1] https://afyren.com/en/blog/afyren-provides-business-update-and-announces-a-e10-million-sustainable-financing-for-its-subsidiary-afyren-neoxy/

^[2] Environmental, social and governance criteria

^[3] Net of other income, mainly operating subsidies

^[4] Ex NEOXY

^[5] Including liase liabilities, which represented €0.3 million as of the end of December 2024

^[6] The commissioning sequence may vary depending on the choice between extending NEOXY or moving to a new site.

^[7] Current EBITDA margin is defined at Company level