Canada's EcoSynthetix Q3 sales fall 38% on lower volumes, macroeconomic conditions

Overview

• Canada renewable chemicals firm's Q3 sales fell 38% yr/yr on lower volumes

• Q3 adjusted EBITDA was nearly flat as lower gross profit offset by reduced operating costs

• Company repurchased and cancelled 23,000 shares in Q3 under normal course issuer bid

Outlook

• EcoSynthetix says macro dynamics in key end markets continue to weigh on sales volumes

• Company prioritizes driving adoption within existing and new customers to return to growth

• EcoSynthetix continues to work with key accounts to support higher usage of its biopolymers

Result Drivers

• LOWER SALES VOLUMES - Co said Q3 sales fell due to reduced volumes in key end markets and challenging macroeconomic conditions

• SLOWER CUSTOMER ADOPTION - Co said rate of adoption of its biopolymers was slower than anticipated, with strategic accounts using products at reduced levels

• HIGHER AVERAGE SELLING PRICE - Co said higher average selling price, driven by product mix and FX, partially offset volume declines

Company press release:

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)