QUECBEC CITY, Canada – Membrane filtration company H2O Innovation has reported positive financial results but has indicated a shift from water project revenues to growth in speciality products and services.
H2O Innovation’s revenues for fiscal year 2016 increased by 4% to $50.7 million, up from $48.7 million for fiscal year 2015, generating a gross profit margin of 30.7%.
The Canadian company said growth came as a result of a 37% increase, from $20.2 million to $27.7 million of revenues coming from the corporation’s specialty products and services pillar (SP&S).
However, on the water treatment projects side, revenues in fiscal year 2016 stood at $23.0 million compared to $28.5 million in fiscal year 2015, representing a 19.3% decrease.
As a result, a higher proportion of revenues were generated from the SP&S activities than the water treatment projects activities – 54.7% and 45.3%, respectively, compared to 41.6% and 58.4%, respectively, during the previous fiscal year.
Adjusted EBITDA decreased reaching $2.9 million compared with $3.1 million during prior fiscal year.
The ratio of adjusted EBITDA over revenues is at 5.7%, down from 6.3% for fiscal year 2015.
H2O Innovation attributed the decrease of EBITDA down to “the choices management made by adding resources to expend the corporation’s sales force, and investing in product development in order to be able to launch new products during the fiscal year 2017, which increased H2O Innovation’s selling expenses”.
Frédéric Dugré, CEO of H2O Innovation, said: “During the last fiscal year, we made important steps toward growth: launched new products, opened a new office in Spain, hired new resources in our sales force, expanded in Mexico, and concluded two acquisitions.
“One of these acquisitions is a stepping stone of our 3rd pillar: operation and maintenance services of water and wastewater treatment infrastructures. 2016 is as an inflexion point for H2O Innovation and allows us to start 2017 in an enviable position with a strong backlog of $99.7 million and new products in commercialisation phase.”
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