Bawat keeps growing
Today Bawat announces their Q4 Report 2022. CEO, Marcus Peter Hummer comments on their growth.
BAWAT is a leading supplier of sustainable ballast water treatment technology and services. BAWAT was listed on Nasdaq First North Premier Growth Market in Stockholm in March 2022. This quarterly report represents the third financial update to the Stock Exchange since the company was listed.
Financial Highlights Q4 2022 – delayed large orders and further lift in margin:
- Order intake in the fourth quarter was SEK 1.2m and Order Intake for the year is SEK 18.1m.
- The low Q4 Order Intake reflects the difficulty in projecting decision making on larger orders for mobile containerized solutions. These orders have a large impact on the full year volume and thus have a large on/off effect on reaching guidance.
- Sales in Q4 amounted to SEK 2.4 m (Q4 2021: SEK 3.3m).
- The gross profit on sales in the period was reported at 64.4% reflecting the high degree of service and project completion in the sales figures for the quarter. The gross profit is expected to increase to 30% or above in the years to come depending on the sales mix.
- Ship systems were commissioned with new customers in a smooth and predictable way, all passing trouble free the commissioning test which is mandatory for newly installed BWMS systems as per 1. June 2022
- Quoting activity is still very high and Q4 marked the highest quoted volume recorded. More than SEK 75m in quotes for the Q4.
Bawat is active in three market segments within ballast water management. The company estimates the annual market opportunity to:
- Ship installations USD 3bn
- Mobile installations USD 2bn (total market)
- Ballast-water-as-a-Service USD 5bn
After closing of Q4 one large order for a mobile unit has been confirmed from end-customer in February 2023 and second large order for mobile units is still in commercial negotiations. The confirmed mobile order is for Bawat Ballast-water-as-a-Service (BaaS) partner Freedom Ballast in the US, and together with the order is also a service order for BaaS between Freedom Ballast and their end-customer.
Marcus P. Hummer, CEO comments on the developments in the fourth quarter: “The quarter shows the challenge in predicting timing for Order Intake. We didn’t reach our guidance for the full year as already announced in January but are pleased to report that one of the two larger orders that made up the bulk of the missed guidance has been confirmed in February 2023. Activity on the commercial side of the business is high and the increase in quoting activity is across all three activity legs in Bawat at an all-time high.
As also reported in third quarter, we have further seen the increase in gross profit in the fourth quarter to 64.4 %, and already now Bawat is close to the predicted long term gross profit margin of 20% for ship systems. This gives us comfort in our project execution after signed contracts – both for ships as well as for mobile systems, and in the years to come we are certain to reach 30% or more in gross profit for the company depending on the sales mix.”
“For the full year 2023, order intake is guided to SEK 40-60m and an estimated EBITDA break-even is forecasted to be reached in H2 2024. The forecast is based on projected revenue, cost, and margin structure.”
Bawat is hiring! Bawat keeps growing and they are looking for two new colleagues to join our team in Hørsholm, Denmark – a Technical Design Engineer and a Technical Project Manager.
This article is shared by Bawat www.bawat.com
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