FRX Innovations' Q3 Results: Revenue up 59% and Gross Margin Improved from -$1.0M to -$0.37M for 3-months Ending Sept 2023 vs. Comparative Previous Period in 2022; For the 9-months Ending September 2023, COGS Reduced from $4.8M to $2.9M
Boston, MA – TheNewswire - December 4, 2023 – FRX Innovations, Inc. (TSXV:FRXI) (FSE:W2A) (OTC:FRXI), a pioneer in the eco-friendly flame-retardant sector, announces a Q3 2023 marked by revenue growth, improved gross margins, and important reductions in Cost of Goods Sold expenses. This performance prepares FRX well for anticipated future growth as deadlines approach for previously announced legislative and litigation-driven requirements to eliminate Brominated and PFAS-containing flame retardants from consumer electronic devices.
Q3 2023 Financial Highlights:
Continued Revenue Growth: Q3 2023 saw revenue climb to $0.62M, a 59% increase versus the comparable previous period in 2022, illustrating the start of market recovery.
Gross Margin Improvement: The gross margin deficit improved from $1.0M in Q3 2022 to $0.37M in Q3 2023, a demonstration that FRX’s variable costs, including energy costs, are returning to historical levels.
Reduced Cost of Goods Sold Expenses: FRX lowered its COGS, year-on-year, for 9 months ending Q3 2022 from $4.8M to $2.9M, a further demonstration of important improvements.
Inventory Management: FRX aggressively reduced inventories converting $0.87M of its finished goods inventory to cash during the 9 months ending Q3 2023, which has greatly helped FRX manage its cash flow.
"The third quarter of 2023 has been an important period for FRX Innovations, underscored by promising financial results," commented Marc Lebel, CEO of FRX Innovations. "Our revenue growth of 59% and the marked improvement in our gross margins demonstrates that we are successfully navigating the current challenges facing the global chemical industry. These results lay a solid foundation for sustained financial health and prepares the company for expected accelerated growth as consumer electronics device manufacturers respond to the approaching deadlines driving the switch from halogen and PFAS containing flame retardants to green alternatives like FRX’s Nofia® product line.”
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About FRX Innovations (www.frx-innovations.com)
FRX Innovations is a global manufacturing company, producing a family of sustainable flame retardant products that serve several large markets spanning textiles, electronics, automotive, electric vehicles (EV), and medical devices. FRX is led by a team of highly experienced business and technical professionals and is positioned to be a leader in the rapidly changing flame-retardant plastics and additives market in response to new legislation prohibiting Brominated and Perfluoro flame retardants found in a wide range of electronics and electrical products and restricting the use of melamine flame retardant chemicals found in furniture and mattress foam products.
NOFIA® is a registered trademark of FRX. NOFIA® products are manufactured at its manufacturing facility on the Port of Antwerp in Belgium, one of the world's largest chemical producing clusters. NOFIA Polyphosphonates are produced using sustainable green chemistry principles such as a solvent-free production process, no waste by-products, and near 100% atom efficiency, and are halogen, PFAS and melamine free. FRX's portfolio includes an extensive patent estate. FRX has been at the forefront of the ESG movement to a greener future. The company has been the recipient of numerous awards, including the EPA's Environmental Merit Award, the Belgium Business Award for the Environment, and the Flanders Investment of the Year Award. FRX has also been recognized six times on the Global Cleantech 100 list.
Cautionary Note Regarding Forward-Looking Statements and Reader Advisory
Certain statements contained in this news release, including, but not limited to, statements with respect to the Offering, the completion of the Offering, the size, amount and type of securities issued under the Offering, participation in the Offering by related parties and the amount of such participation, among other things, and statements which may contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions, and statements related to matters which are not historical facts, may constitute forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management’s expectations regarding the Company’s future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.
These factors should be considered carefully, and readers should not place undue reliance on the Company’s forward- looking statements. The Company believes that the expectations reflected in the forward-looking statements contained in this news release and the documents incorporated by reference herein are reasonable based on information available to it, but no assurance can be given that these expectations will prove to be correct.
Mark Lotz CFO
Mike Goode CCO
FRX Innovations Investor Relations and Media Inquiries
+41 76 335 4402
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