Net loss for the Group of €11.1 million in 2020, an improvement of €1.6 million compared to 2019. Gross cash position of €15.2 million as of 15 March 2021.
Paris, 15 March 2021 – The Board of Directors of Global Bioenergies (Euronext Growth: ALGBE), at its meeting today, approved the annual financial statements for 2020, which were audited by the Statutory Auditor. The consolidated annual results show a net loss of €11.1 million for 2020, with a cash flow of €15.2 million to date, which provides good visibility for the Company.
Samuel Dubruque, Chief Financial Officer of Global Bioenergies, commented: “2020 continued to follow the loss-reduction track that began several years ago: -€14.3 million in 2017, -€13.6 million in 2018 and -€12.7 million in 2019. In 2020, we were able to achieve the results improvement target while incurring new expenses as part of our development, with a particular focus on preparing for market access from 2021.
Our announcements in recent months initially indicated the creation of a team bringing together the expertise inherent in the various cosmetics business lines. Then, we announced the success of the toxicological evaluation and registration phases in the European regulatory system enabling the production, storage, transportation and use of our isododecane in a first area, that of cosmetics. Ultimately, we presented our bold initiative to launch, in upcoming months, our own long-lasting makeup range, based on this ingredient”.
Marc Delcourt, Chief Executive Officer of Global Bioenergies, added: “Our isododecane gives us the unique opportunity to bring natural ingredients to long-lasting makeup, which alone represents a global market of around €10 billion. The production capacity of our demo plant is sufficient to generate finished products in this segment representing significant market value. We have decided to make an intense effort to move down the value chain to maximise our innovation, and also to make our own contribution to the major quest for natural ingredients in the cosmetics industry.
We are also actively working to accelerate the increase in our production, which requires a fundamental adaptation of our process. The aim is to draw on the capacities of existing fermenters, rather than use specific fermenters that need to be made on demand. This development will enable us to accelerate the availability of products without waiting for the construction of new plants. The first pilot validations are very promising, and will result in a new industrial trajectory, details of which will be presented shortly. Our own brand will be able to capture part of this growing production. The rest will be made available to the major market players, in an orderly and progressive manner.
2020 was rough, but we have made unprecedented progress”.
- Group profit & loss account as at 31 December 2020
Operating income mainly consists of the five European grants obtained in 2017 and 2018 associated with the diversification of feedstock usable by the process. These five projects were all subject to payments in 2020 following the validation of key milestones.
Operating expenses experienced significant changes in 2020. All expenditure items decreased significantly, with the notable exception of “Industrialisation”, which now includes new expenses related to the development of our own brand.
From now on, these commercial prospects mean that we record the inventories of isobutene (IBN) produced, its derivatives – primarily cosmetic-grade isododecane – and long-lasting makeup products.
Details of the “Industrialisation” item showed the following changes from 2018 to 2020:
Operating expenses for the demo plant and the pilot plant and engineering studies were little changed. Nearly €2.1 million was recorded in new expenses, firstly for the fine-tuning and development of the conversion of the isobutene produced at Pomacle and Leuna into cosmetic-grade isododecane, but also for conducting and carrying out studies and tests for marketing, as well as the development of our own brand.
Operating expenses are still heavily impacted by depreciation costs, in particular those of the Leuna demo plant (€2.9 million) first recognised on 1 April 2017 for a period of four years. The end of the depreciation of the demo plant at the end of the first quarter of 2021 will lead to a natural improvement in operating income for 2021.
- Group balance sheet as at 31 December 2020
Fixed assets decreased due to limited material investments of less than €0.3 million in 2020 and depreciation recorded in the amount of €3.3 million. The receipt, in December, of the first part of the State-guaranteed loan (€4.9 million out of total €6 million obtained) affected “Conditional advances and loans”. There was little change in “Other debts and deferred income” because the €2.2 million of inflows in 2020 for the five projects benefiting from European funding offset the expenses incurred on said projects.
- Group cash flows* at 31 December 2020
* as a rule, the amounts included are net of accrued interest not yet due, of €0.8 million at 01/01/2020 and €0.6 million at 31/12/2020 respectively.
Cash flows from operating activities (-€10.6 million) were offset by the receipt of part of the State-guaranteed loan and by the Kepler Cheuvreux line of financing (+€10.6 million). The balance of the change is reflected in material investments (-€0.3 million) and debt repayment (-€0.5 million).
- Highlights of 2020 and recent events
2020, will be marked, on a global scale, by the emergence of the Covid-19 health crisis and its various repercussions on societies and economies. The Group’s activity was no exception. The Pomacle and Leuna pilot and demo plant sites did not suffer any reduction in activity, but the Company was obliged to use the partial activity scheme between 16 March and 10 April 2020 for the employees of the laboratory in Evry whose protection could not be ensured under usual working conditions, and for which remote work was not possible. The number of hours not worked over this four-week period was finally limited to 2,800 hours, corresponding to a level of activity of around 60%. Business was able to resume at a normal pace on 14 April 2020, after the measures to ensure employee safety were defined, adopted and applied in consultation with employee representatives.
As a result of uncertainties related to the deterioration of the macroeconomic situation, On 30 April 2020, the Company announced that it was considering a collective dismissal for economic reasons, which resulted ultimately, in early June 2020, in the dismissal of seven employees.
Despite the challenging periods experienced as a result of the events and decisions described above, the year saw considerable progress in the understanding of the cosmetics market and the role played by isobutene derivatives. Secondly, the Company focused on defining the best strategy to apply to make the most of the opportunities identified, in particular to enable the long-lasting makeup segment to be natural without losing performance, after acknowledging that isododecane was the key molecule in this segment. The Company began by adding new members from the cosmetics industry to its Board of Directors, first welcoming Corinne Granger, Director of R&D and Medical Director of ISDIN, then Nicolas Cordier, former Chairman and CEO of the brand Make Up For Ever. In September 2020, Corinne Granger became Chairperson of Global Bioenergies.
In the course of 2020, the decision to enter into this market through our own brand became the best way to ensure, on the one hand, the highest retention of the added value provided by our innovation and, on the other hand, to communicate, through the launch of the world’s first brand of long-lasting makeup formulated with natural ingredients, on the new possibilities now available to this segment representing 25% of the global makeup market. If this solution were to become the new standard for long-lasting makeup, it would significantly contribute to enhance natural ingredients in the cosmetics industry, and would serve as a stepping stone for Global Bioenergies to penetrate other industries.
The Company has also strengthened its financial position by obtaining a State-guaranteed loan for a total amount of €6 million, of which €4.9 million were paid before 31 December 2020. In addition, a line of equity financing signed with Kepler Cheuvreux enabled to raise an additional €5.9 million between September and December 2020.
 The annual financial report will be published in April and the financial statements will be certified at the same time.
About GLOBAL BIOENERGIES
Global Bioenergies has developed a process to convert plant-derived resources into a key family of ingredients used in the cosmetics industry. The process was first developed in a laboratory, where the Company is further enhancing performance. It now operates as a pilot and a demo plant, with sufficient capacity to enable the Company to access the market by first creating a long-lasting makeup home brand. The Company is gradually increasing its production capacities and is looking to improve the environmental footprint of not only the cosmetics industry but also that of other areas such as transportation and materials. Global Bioenergies is listed on Euronext Growth Paris (FR0011052257 – ALGBE)
Should you like to be kept informed, subscribe to our news feed on www.global-bioenergies.com
Follow us on Twitter: @GlobalBioenergi
Chief Financial Officer
Phone: +33 (0)1 64 98 20 50
Download the PDF