- Velan (VLN) has announced fiscal financial results for the quarter ended August 31, 2022
- The company said its sales for Q2 increased by $10.1 million to $85.1 million, a 13.4 per cent increase from Q1
- Gross profit was $23.5 million compared to $31.4 million in the same quarter last year due to lower sales volume, which impacted the absorption of fixed production overhead costs
- Velan Inc. (VLN) was down 0.96 per cent to C$5.74 as of 3:30 p.m. ET
Velan (VLN) has announced fiscal financial results for the quarter ended August 31, 2022.
The company said its sales for Q2 increased by $10.1 million to $85.1 million, a 13.4 per cent increase from Q1 2022. This was a decrease of $16.8 million compared to Q2 last year. The decrease was due to the continued weakening of the euro average rate against the U.S. dollar and stronger shipments in the prior year.
Meanwhile, gross profit was $23.5 million compared to $31.4 million in the same quarter last year due to lower sales volume, which impacted the absorption of fixed production overhead costs. However, it was an improvement of $3.4 million compared to Q1.
Velan’s CEO, Bruno Carbonaro, said that as the volatility across various macroeconomic factors continues across the globe, the company managed to improve its performance over Q1 by prudently managing its business while facing headwinds in logistics, operations and their related impact on deliveries.
“We are nonetheless not pleased with our second quarter results and believe that our success in the second half of the fiscal year will rely on our plant effectiveness, with continuous improvements that will lead to sustainable performance, and a strong performance in bookings, targeting certain key projects that will allow us to maintain our strong backlog. Important to note that the decrease in backlog this fiscal year is largely related to foreign exchange conversion, as our book-to-bill ratio is positive since the beginning of the fiscal year. Finally, we believe that our success will be possible thanks to our highly qualified employees who have continued to show great discipline and dedication.”
Velan’s net cash amounted to $29.7 million, a decrease of $23.7 million from the beginning of the fiscal year, which the company said is mainly attributed to lower quarterly EBITDA.
Velan Inc. (VLN) is an international manufacturer of industrial valves. It offers products such as Gate valves, check valves, cryogenic, steam traps, and others, which are used in various industries, including power generation, oil and gas, refining and petrochemicals, chemical, liquid natural gas (LNG) and cryogenics, pulp and paper, geothermal processes, and shipbuilding. The company operates in various geographical regions, which are Canada, the United States, France, Italy, and other countries.
Velan (VLN) was down 0.96 per cent to C$5.74 as of 3:30 p.m. ET.