Novonix share price lifts despite full-year loss deepening to $71 million

The Novonix Ltd (ASX: NVX) share price is taking off after the company released its financial year 2022 report this afternoon.

The S&P/ASX 200 Index (ASX: XJO) battery materials and technology stock opened 1.7% lower at $2.29 on Wednesday before settling to trade relatively flat for much of the morning.

But all that changed after the release of the company’s results. The Novonix share price is currently swapping hands for $2.39, 2.58% higher than its previous close.

Novonix share price lifts on annual report

Here are the key takeaways from the ASX 200 favourite’s full-year results:

• Revenue came in at $8.4 million – a 61% increase on that of the prior corresponding period (pcp)
• Total loss for the year nearly quadrupled to reach $71.4 million – down from the pcp’s $18 million loss
• Earnings per share (EPS) slumped to a 15.4 cent loss
• Cash flows from operating activities came to a $40.3 million outflow – down from an $8.2 million outflow
• Cash and equivalents increased 51.5% to $207 million at the end of FY22

Looking at the company’s major segments, its battery technology business outperformed. It brought in $10 million of income in FY22 and posted an $8.7 million loss. Its revenue grew over every quarter of the financial year just been.

Meanwhile, the company’s battery materials segment saw $531,850 of income and posted a $28.5 million loss.

Novonix noted its earnings for FY22 were in line with management’s expectations.

What else happened in FY22?

The company increased its investment in the development of cathode synthesis technology and continued working on battery pack systems to support microgrids in FY22.

Meanwhile, it made progress toward expanding its production capacity for battery-grade synthetic graphite material.  

US energy giant Phillips 66 (NYSE: PSX) made a strategic investment in the company in August 2021, forking out around $203 million for a 16% stake. The Novonix share price rocketed 15.5% on the back of the news.

Finally, the company was admitted to the ASX 200 in December and began trading on the Nasdaq Stock Market in February.

What’s next?

The company didn’t provide any new earnings guidance today. Though, it did outline its growth strategy.

Novonix is focusing on scaling its production capacity of synthetic graphite. It’s on track to reach a capacity of 10,000 tonnes a year in 2023 and plans to expand that to 150,000 tonnes by 2030.

It will also continue working to develop sustainable technologies, pursue strategic partnerships with international battery companies, and grow its intellectual property pipeline.

It believes doing so will maintain its technology leadership throughout the electric vehicle battery and energy storage supply chain.

Novonix share price snapshot

This afternoon’s turnaround hasn’t been enough to boost the Novonix share price into the longer-term green.

The stock is currently trading for 77% less than it was at the start of 2022. It has also dumped 47% since this time last year.

For comparison, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.

The post Novonix share price lifts despite full-year loss deepening to $71 million appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price tumbling 6% on Monday?
• Why is the Novonix share price getting hammered on Wednesday?
• How close is ASX tech share Novonix to becoming profitable?
• Why did the Novonix share price nosedive 6% today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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