France-based Hoffmann Green Cement Technologies, a specialist in the production of clinker-free cement, has reported revenue of EUR544,000 in the first half of 2022, up from EUR540,000 in the same period a year earlier. EBITDA came in at -EUR3.5m in the 1H22, compared to -EUR2.6m at the end of the 1H21. According to the company, the decline in EBITDA is due to an increase in the purchasing of raw materials on the back of R&D tests and developments, and the resumption of trade fairs and shows.
The change in EBITDA and an increase in depreciation charges led to a recurring operating loss of -EUR4.7m in the 1H22, versus -EUR3.6m in the 1H21. The net loss at the end of the six-month period stood at -EUR4.6m, compared to a loss of -EUR2.7m at the end of the 1H21.
Over the opening six months of 2022 the company sold 2087t of cement, compared to 1875t in the same period a year earlier, marking a YoY increase of 11 per cent. High inflation and the ongoing shortage of building materials has delayed construction work, affecting volumes over the first half of the year with construction players seeing unprecedented rises in raw material prices, leading to the postponement of certain projects. However, cement orders over the six-month period were up by 10,000t following the signing of new partnerships with Bouygues Immobilier, Duret Immobilier, P2i, Les Maçons Parisiens and Cemblend. The first half of 2022 has also seen the company create a joint venture with a Swiss construction player to produce and exclusively distribute Hoffmann cements in Switzerland.
Construction of the company’s second production site (H2) remains on schedule with the plant expected to be delivered by the end of 2022. It has also signed a 40-year temporary occupation permit at Dunkirk major seaport in order to build the company’s third production facility (H3), along with a similar 25-year agreement at the Port of La Rochelle to construct silos and facilities for the handling of raw materials.
Looking ahead, the company aims to sell in excess of 10,000t of cement in 2022, generating more than EUR2.3m in revenue. This has been revised from the previous target of 20,000-30,000t due to the postponement of construction work the company is participating in. “In the first half of this year, the growth in volumes sold fell short of expectations as a result of building projects being postponed due to rising inflation and the unprecedented shortage of construction materials that is affecting the entire sector,” said Julien Blanchard and David Hoffmann, co-founders of Hoffmann Green Cement Technologies. “However, in the medium term, the current energy crisis is demonstrating just how important it is to move towards decarbonised and energy-efficient solutions such as those deployed by Hoffmann Green, which uses a heating-free manufacturing process.”
