Hoffmann Green announces revenue of €6 million and exceeds its 2023 target

Julien Blanchard and David Hoffmann, Co-founders of Hoffmann Green Cement Technologies, said: "In a construction market that is still experiencing a slowdown, Hoffmann Green has succeeded in achieving revenue of €6.0 million, a 2.7 times increase compared with 2022 revenue, a level of activity higher than the €4.5 million target set at the beginning of last year. This release also illustrates the relevance of our positioning, with sales indicators showing strong growth. 2023 will have been a key year for Hoffmann Green, with several milestones achieved. On the commercial side, the strong growth in volumes sold and the numerous strategic partnerships established with leading players confirm the attractiveness of our solutions in relation to the decarbonisation challenges facing the construction sector. The successful launch of H2 in the early summer of 2023 was another of last year's key events, providing us with the production capacity we need to meet strong demand. Finally, the signing of our first licensing contract has validated our international development model. As a result, we can face the 2024 financial year with confidence, in a regulatory environment (RE2020 environmental regulations) that will be more restrictive for traditional cement manufacturers and favourable to the development of our company. We therefore confirm all our short- and medium-term financial guidance."

Exponential sales dynamic: revenue and sales volumes multiplied by 12 in three years

Hoffmann Green's 2023 revenue amount to €6.0 million, a 2.7 times increase compared with 2022. Over the past three years, revenue have multiplied by 12, illustrating the company's uninterrupted growth trajectory.

Revenue for 2023 correspond to €4.0 million from the sales of cements, mainly H-UKR technology, and €2.0 million from the licensing contract signed with the Saudi Shurfah Group.

In terms of volumes, the company sold 21 378 t in 2023, a level slightly below the target of 24 000 t, but representing an increase of 78% compared with the previous financial year. This represents a 12-fold increase in volumes sold since 2021.

The year 2023 was also shaped by the diversification of the company's customer portfolio through the signing of several partnerships with key players such as Point P, SPIE Batignolles and, more recently, the group Les Mousquetaires. This latest agreement includes the distribution of low-carbon cements in more than 600 stores under the Bricomarché, Bricorama, Brico Cash and Tridôme brands, targeting the significant individuals market for the first time.

Overall, the company has strengthened its order book to more than 260 000 t by the end of 2023, an increase of 20 000 t over last year.

Accelerating international development and pursuing industrial deployment

The company has signed an exclusive 22-year licensing agreement with Shurfah Group to build several Hoffmann Green units in Saudi Arabia to contribute to the decarbonisation of the country's construction sector. The signature of this agreement is a significant step in the company's international development. In exchange for the industrial and technological transfer, Hoffmann Green has received an entry fee of €2.0 million from Shurfah. The agreement also includes fixed and variable annual royalties based on sales generated by the commercialisation of Hoffmann cements in Saudi Arabia.

In mid-December, the company also announced the signature of an agreement with a US partner establishing the key principles of an exclusive licensing agreement to build several Hoffmann units in Florida.

In parallel with the acceleration of its international development, Hoffmann Green has reached a key milestone in its industrial roadmap: the launch of H2, the world's first vertical cement factory. Built entirely from Hoffmann cements, this structure will increase production capacity by 250 000 tpy of cement, in line with the group's objectives.

Strategy and outlook: short- and medium-term financial guidance confirmed

Encouraged by its many achievements (commercial development in France and abroad, pursuing industrial deployment, technological developments and CSR awards), Hoffmann Green confirms all its short- and medium-term financial objectives, namely:

• 2024: achieve positive EBITDA ;
• 2025: positive current operating income fto;
• 2026: revenue of €130m and EBITDA margin of 40%.

Read the article online at: https://www.worldcement.com/europe-cis/16022024/hoffmann-green-announces-revenue-of-6-million-and-exceeds-its-2023-target/