• The Company’s Activated Carbon Pellet business segment continued to show strong market penetration, where revenue growth outside of its largest pellet customer was 118% compared to FY20. This is consistent with the Company’s market diversification strategy. Pellet sales accounted for 55% of revenue and 42% of sales volume.
• Revenue of $12.3 million, down 22% on FY20 due to several non-recurring factors including the impact of COVID-19 on business activity, the deferment of pellet manufacturing for certain industrial pellets due to high raw material costs, and unplanned outages at select customer’s power generation facilities. Exchange rate fluctuations also impacted comparative revenue accounting for 9%, or $1.4m of the decrease.
• Underlying EBITDA loss for FY21 of $2.2m, compared to FY20 EBITDA loss of $1.3m – with FY21 EBITDA being impacted mainly by the decrease in revenue as a result of the impact of COVID-19.
• Annual gross margin of 28% (prior year: 32%) principally due to higher production costs for the CTC pellets product line as the declining trade terms and higher costs impacted the Arden Hills facility (now resolved). As noted in earlier announcements, industrial pellet production was deferred in April 2021 until the new Kentucky facility becomes operational.
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