Shares of Burlington-based Ecosynthetix (TSX:ECO) are soaring today after its 2012 numbers showed the company may be nearing profitability.
The company reported that net sales for the fourth quarter were up 59% to $5.9 million, from $3.7 million in Q4 2011. For fiscal 2012, net sales were $19.6 million, down slightly from fiscal 2011’s $20.8 million topline.
The real story, though, was the company’s bottom line.
Ecosysnthetix net loss trimmed from $252.7-million in 2011 to just $11.43-million in fiscal 2012. The company’s cash position fell to $93.2-million from $105.7-million.
CEO John van Leeuwen said the company turned a corner in 2012.
“We continued building a foundation for growth by attracting high-calibre executives, enhancing our sales strategy and our product innovation process – and it’s paying off. We are winning new customers and increasing sales to our existing customers. We won two new customers from the top 20 global paper and paperboard manufacturers and twelve new customers in total during 2012,” he said. “These wins show that our message is resonating with the customer. By using our EcoSphere® biolatex® binders they benefit from improved or comparable performance with lower and more stable pricing than the higher and volatile pricing of petroleum-based binder alternatives.”
In August of 2011, EcoSynthetix IPO’s on the TSX, raising just over $100 million by selling 11.15 million shares at $9. The company specializes in bio-based products that can be used as inputs in industrial manufacturing for a wide range of consumer products. Its products offer a reduced carbon footprint and are marketed on the basis of lower cost, stable pricing and equal or superior performance. The company’s s lead product, EcoSphere® biolatex® binders, is used commercially by a number of the top manufacturers in the coated paper and paperboard industry.
At press time, shares of Ecosynthetix were up 8.2% to $3.15
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