The Carbon Revolution Ltd (ASX: CBR) share price is charging higher today, up 14% at time of writing to $1.09 per share.
This follows on the release this morning of the carbon fibre wheel developer's results for the 2021 financial year (FY21).
Carbon Revolution share price rockets on FY21 results
- Total revenue of $34.9 million, down from $38.9 million in FY20
- Gross loss of $14.3 million compared to a loss of $11.6 million the previous year
- Total expenses of $24.3 million, down from $17.8 million
- Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at a loss of $17.2 million, compared to a loss of $15.7 million in FY20
What happened during the reporting period for Carbon Revolution?
Carbon Revolution reported significant influences to its business from COVID-19, with many of its customers negatively impacted by the pandemic. Revenues also came under pressure from the global semi-conductor chip shortage.
The company said the first and second half of the financial year were markedly different. H1 saw production volumes decrease along with additional finishing costs. In H2 production volumes picked up and Carbon Revolution implemented its Diamond Weave Technology. That technology led to lower finish costs and improved wheel aesthetic quality.
Two new Ferrari vehicles were released in FY21 equipped with Carbon Revolution wheels.
The company also completed a $95 million capital raise to support its "Phase 1 Mega-line expansion".
What did management say?
Commenting on the results, Carbon Revolution's CEO Jake Dingle said:
The global vehicle market's move toward electric vehicles and vehicles with large wheel formats represents a step change for the adoption of our wheel technology and the development of our company.
The broader industrialisation program is progressing, with Diamond Weave Technology introduced to dramatically improve the first-time aesthetic quality of the wheels. We have also commissioned a significant amount of new industrialised equipment, delivering the capacity required for awarded but not yet launched programs.
What's next for Carbon Revolution?
Looking ahead, Carbon Revolution said that with a strong balance sheet and having advanced its industrialisation activities, it's well positioned for the next stage of growth.
During the course of the year, the company secured agreements on 4 new wheel design and engineering programs. It said a "significant proportion of these" are higher volume platforms for EVs with large wheel formats. It expects these programs to enter production in the 2023 and 2024 calendar years.
The Carbon Revolution share price is down 29% over the past 12 months.