Leclanché SA, one of the world’s leading energy storage companies, announced half-year results for the six months ending 30 June 2024 (the period), reflecting management’s and the board’s strategic focus to position the Company for future growth.
| (in million CHF) | H1 2024 | H1 2023 | |
| Income | 5.6 | 8.9 | |
| EBITDA loss | -19.2 | -26.2 | |
| Net loss for the Period | -27.2 | -37.3 |
Revenue for H1 2024 decreased to CHF 5.6 million from CHF 8.9 million in the same period of 2023. Despite this reduction, Leclanché has maintained a dedicated focus on operational efficiency. Notably, the EBITDA loss for the period was reduced to CHF 19.2 million, marking a 27% improvement over last year’s CHF 26.2 million loss. This positive development underscores Leclanché’s effective cost management and progress towards operational profitability.
The first half of 2024 showcased improved gross margins, reaching 10.2%, and highlighting the success of strategic initiatives set forth by both Management and the Board. These results affirm Leclanché’s strong market position, differentiated value proposition, and resilient business model within the industry.
Deferred income stood robustly at CHF 5.4 million as of 30 June 2024, a clear indication of customer invoicing that has yet to be recognized under IFRS. This deferred income contributes to a strong revenue backlog, ensuring a future revenue stream as contracts reach fulfilment. This deferred revenue not only underscores customer confidence in Leclanché’s heavy-duty battery applications but also enhances future revenue predictability.
Financial Stability: Leclanché maintained a stable balance sheet, with total assets of CHF 116.4 million as of 30 June 2024, up from CHF 106.1 million at year-end 2023.
A pivotal milestone in Leclanché’s financial strategy was the successful CHF 84.7 million capital increase on 11 July 2024, achieved through the conversion of existing loans. Strongly supported by key shareholders such as SEF-LUX[1] and other investment partners, this strategic move strengthened the Company’s balance sheet and remedied the prior negative equity position, enhancing Leclanché’s financial health and flexibility as it pursues its growth strategy.
This capital increase also highlights the unwavering support of Leclanché’s shareholders, whose confidence in the Company’s intellectual property and technological leadership fuels continued innovation in energy storage solutions.
Market Advancements: Leclanché is making notable strides in key markets including marine, rail, and heavy-duty applications. In the first half of 2024, the Company has already secured CHF 39.5 million in new contracted revenue, highlighted by recent agreements with Canadian Pacific Kansas City rail and Škoda Electric. These significant contract signings demonstrate that the market believes in Leclanché’s value model, particularly in its intellectual property (IP) and technical know-how. The company’s success in securing these high-profile contracts underscores the industry’s recognition of Leclanché’s expertise in advanced energy storage solutions and its ability to deliver innovative, tailored products for diverse applications.
Technological Innovation: Leclanché has successfully developed and launched XN50, a groundbreaking lithium-ion battery cell featuring innovative niobium-based anode technology. This achievement, in addition to 50% higher energy density compared to LTO and exceptional longevity, positions Leclanché at the forefront of energy storage solutions. The Company’s commitment to sustainability is evident through innovations such as Per- and polyfluoroalkyl substances (“PFAS”) free electrodes and a production process powered by 100% green electricity.
Strategic Funding Partnership: As announced on 25 June 2024, Leclanché has made substantial progress in securing a framework and term sheet agreement with Pinnacle International Capital, with the due diligence process advancing well. This favourable development reinforces both parties’ commitment to a successful partnership. This potential partnership, which could provide up to CHF 360 million in funding, promises significant capital support for Leclanché’s future growth, expanding market opportunities, and solidifying its competitive edge in the energy storage sector.
Pierre Blanc, CEO of Leclanché SA, commented: “In H1 2024, we significantly bolstered our customer order book and enhanced our operational efficiency. We achieved improvements in profitability by increasing our gross margin, resulting in a notable reduction in our EBITDA loss and a substantial increase in deferred revenue. A major milestone in our journey was the CHF 84.7 million capital increase through debt-to-equity conversion, made possible by the steadfast support of our valued shareholders. This conversion has not only strengthened our balance sheet but also provided us with enhanced financial flexibility. As a result, we are now better positioned to meet growing customer demands and accelerate innovation in cutting-edge heavy-duty battery solutions.”
