#Denmark #biotechnology #Water Purification #Aquaporin #Kongens Lyngby

Aquaporin's Full-Year 2024 Financial Review

March 20, 2025, marked a notable day for Aquaporin A/S, an acclaimed innovator in water technology, as it released its Annual Report for the year ending December 31, 2024. The company, known for its revolutionary approach to water filtration using biotechnology, shared insights into a year filled with both challenges and significant developments.

Overview of Financial Performance

In stark contrast to the previous year, Aquaporin reported a 32% decline in total revenue, totaling DKK 40.6 million compared to DKK 59.5 million in 2023. This drop was primarily attributed to an unexpected shift in demand from one of its major clients in the Drinking Water sector and delays in a Forward Osmosis project.

Despite these setbacks, Chief Financial Officer Klaus Juhl Wulff indicated that a stringent focus on cost management resulted in improved earnings before interest and taxes (EBIT), recording a loss of DKK (83) million—an improvement over the DKK (90) million loss in 2023. The company was able to reduce operating costs by DKK 17.3 million, a transition facilitated by organizational restructuring.

Key Business Developments

The year 2024 proved pivotal for Aquaporin as it sought to pivot its strategies and solidify its market position. Here are some key highlights from the period:

1. Strategic Partnerships: Aquaporin strengthened its distribution channels by partnering with Brenntag, a leading distributor in the Asia-Pacific, Turkey, and China, enhancing its capacity to offer advanced wastewater treatment solutions.
2. New Product Innovations: The company announced encouraging laboratory results for its Aquaporin Inside® Generation 2 membranes, indicating promising advancements in performance prior to further testing.
3. Product Launches: The introduction of the Brackish Water Reverse Osmosis CLEAR Series in China marked a significant step towards increasing energy efficiency for various industries and municipalities. Moreover, collaborations led to the successful launch of the Rafine PRO water purifier in Turkey, combined with Vestel, a top-tier technology firm, noted for high contamination reduction.
4. International Contracts: Noteworthy contracts included a major deal worth USD 300,000 in Central Asia for a municipal drinking water treatment plant, showcasing the growing demand for Aquaporin's technologies in various regions.

Looking Ahead: 2025 Projections

As Aquaporin moves forward, the future appears cautiously optimistic. The company estimates revenues in the DKK 60-80 million range for 2025. However, it anticipates an EBITDA loss of DKK (45)-(55) million due to ongoing investments in innovation and market adaptation.

Matt Boczkowski, the CEO, emphasizes the goal of commercializing biotechnology-driven water purification technologies as they look to enhance their market position further. The strategic adjustments in product development and the focus on operational efficiencies indicate a robust roadmap for recovery and growth.

Conclusion

In summary, Aquaporin's 2024 performance reflects a resilient response to unexpected challenges. Their commitment to innovation in water purification remains firm, supported by key partnerships and advancements in technology. As they embark on a new fiscal year, all eyes will be on Aquaporin to see how they leverage their strategic foundation to navigate the evolving water technology landscape.