BioAmber Announces Third Quarter 2017 Financial Results

BioAmber (TSX:BIOA) has announced operational and financial results for the three months ended September 30, 2017.
As quoted in the press release:

Highlights:

• Sales of bio-succinic acid were $3.3m, compared to $3.7m in Q3 2016.  Nine months sales ended September 30, 2017 were $9.5m compared to nine month sales ended September 30, 2016 of $7.6m. An increase of 25% year over year.
• On August 1, 2017, BioAmber entered into a definitive agreement to buy back Mitsui & Co., Ltd.’s entire minority equity stake in the Sarnia manufacturing joint venture. BioAmber now owns 100% of the BioAmber Sarnia production facility.
• On August 11, 2017, BioAmber closed an $11 million offering of stock and warrants.
• On September 14, 2017, BioAmber announced the appointment of Mr. Richard Eno, as its new Chief Executive Officer.
• BioAmber has agreed to extend the pre-commercialization period with CJCJ through to the end of 2017.
• As of October 12, 2017, BioAmber celebrated an outstanding Safety Milestone of 5 years without a Lost Time industrial accident. This translates to over 1,800 days without an injury.

“I am excited to join BioAmber at this stage of development.  Our technology is proven, we have identified numerous opportunities to drive down our variable costs, and our customer base and application pattern continues to expand,” stated Richard Eno, BioAmber’s Chief Executive Officer. “I look forward to leading the company as we grow our sales from Sarnia creating a foundation for long term profitable growth.”
Q3 2017 Financial Results
Revenues for the quarter ended September 30, 2017 were $3.3 million, a decrease of 10% over the same quarter last year, mainly driven by a decrease in succinic acid volume, slightly offset by an increase in average selling price.
Cost of goods sold increased from $5 million to $6 million for the three months ended September 30, 2017 compared to the three months ended September 30, 2016, driven primarily by an increase in production volume and an increase in royalties.
General and administrative expenses increased by $0.6 million to $2.3 million for the three months ended September 30, 2017, as compared to $1.8 million for the three months ended September 30, 2016. This is mainly due to recruiting fees associated with the hiring of a new CEO and an increase in legal fees. Excluding these and other non-recurring charges, general and administrative expenses were flat compared to last year.

Click here to read the full press release.