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2023 annual results

  23/04/2024 18:30

  • Results impacted by growth investments
  • Solid financial structure strengthened by IPO fundraising – Net cash position of €4.8 million
  • 2025-2027 financial guidance pushed back to 2026-2028 due to longer decision-making cycles regarding the allocation of major projects

Chartres, le 23 April 2024 - OSMOSUN®, a leading provider of solar-powered seawater and brackish water desalination solutions, today announces its results for the year ended 31 December 2023.[1]. (ISIN: FR001400IUV6 – Symbol: ALWTR)

OSMOSUN® Chairman and CEO Quentin Ragetly said:

“2023 proved to be a turning point for OSMOSUN. Besides successfully pursuing the deployment of major projects won in previous years, particularly in Mauritania, Saint Kitts and Nevis and Cape Verde, we also launched a bold new development phase thanks to the funds raised from our successful IPO, with a view to becoming a leading player in low-carbon water treatment.

We have therefore started to strengthen our teams and sign new partnerships with the aim of expanding our local presence in priority regions worldwide and multiplying our commercial opportunities. These investments obviously impact our short-term results but will lead to future growth.

Our pipeline of projects under advanced negotiations has gathered pace thanks to the proliferation of small projects alongside an increasing number of major potential contracts. We are fully committed and perfectly positioned to consolidate a portion of these opportunities. However, due to decision-making cycles being longer than expected, we have been forced to take a cautious approach and push back our medium-term guidance by one year.”

Results impacted by growth investments

Full-year revenues, recognised on a percentage of completion basis in accordance with project costs incurred up to the balance sheet date, came to €3.0 million in 2023, mainly driven by progress across major contracts in the Group's strategic regions, particularly in the Caribbean (Saint Kitts and Nevis), Africa (Cape Verde, Mauritania, Morocco and Djibouti) and Oceania (Vanuatu).

Revenues are down 34.7% versus 2022 due to delays on certain major contracts, which therefore contributed lower revenues than expected in 2023 but will boost revenues for the current financial year.

 €000 2022 2023
Revenues 4,602 3,003
Total production2 4,746 3,356
Gross margin2 2,355 1,170
EBITDA2 171 (1,947)
Adjusted EBITDA[2] 197 (1,925)
Operating income (623) (2,705)
Adjusted operating income2 (596) (2,683)
Financial result (223) (580)
Net non-recurring items 362 192
Net income/(loss) (456) (3,071)

Adjusted EBITDA came to a €1.9 million loss in 2023, compared to a €0.2 million profit the previous year. Adjusted EBITDA was curbed by (i) the temporary impact of one contract on gross margin, which fell short of the Group's normal gross margin level of 45-50%, and (ii) an increase in operating costs linked to Group's development phase.

Personnel costs rose 54% year on year to €1.9 million, driven by the recruitment plan launched by the Group during the period. The average headcount increased by 47% to 28.2 FTE[3] in 2023 compared to 19.2 FTE in 2022. OSMOSUN launched an extensive recruitment drive in 2023, opening nine new positions. The sales team now comprises ten FTE versus six at the end of 2022. The aim is to strengthen the Group's presence in priority regions (notably Africa and Asia-Pacific) and increase the Group's ability to process bids in order to multiply its growth opportunities for projects of all sizes. Meanwhile, the Group expanded its technical and operational teams in order to support activity ramp-up and ensure the industrialisation of small-capacity projects.

Non-recurring expenses arising from the IPO amounted to €0.3 million.

The Company posted a net loss of €3.1 million for the period, compared to a €0.5 million loss in 2022, after taking into account a purely accounting non-recurring expense relating to non-issuance premiums as part of the subscription to the capital increase by conversion of convertible bonds into shares.

Operating free cash flow came to a €2.8 million outflow (compared to a €0.6 million outflow in 2022), including operating funding needs (€2.2 million outflow) and limited investments (€0.6 million outflow).

Strengthened by the net proceeds from the capital increase, shareholders' equity amounted to €7.8 million at 31 December 2023. Cash and cash equivalents stood at €7.2 million (compared to €0.4 million at 31 December 2022) versus gross borrowings of €2.4 million, resulting in net cash of €4.8 million.

Ongoing industrial and commercial partnerships

OSMOSUN® actively pursued its commercial development throughout the year to ensure its future growth. Besides strengthening its teams, the Group also launched new strategic partnerships.

OSMOSUN established a strategic partnership in Morocco with renowned Moroccan industrial group PCS. The partnership will help consolidate the Group's local presence and enhance its ability to efficiently meet the specific demands of the Moroccan market. Morocco is experiencing severe water stress. The combined expertise of OSMOSUN and PCS will enable the subsidiary to take full advantage of the large investment programme for the construction of seawater desalination plants introduced by the government and the Moroccan industrial group OCP.

The Group has also stepped up its partnership strategy in order to consolidate its position in the seawater desalination market and expand in related markets. This includes the partnerships recently signed with OKwind, a specialist in smart renewable energy generation and management systems dedicated to self-consumption, and with the Emergency Architects Foundation.

As announced in its development plan, OSMOSUN® is reviewing potential acquisition targets that could enable it to gain access to new technologies and/or penetrate related markets.

Considerable ramp-up of the portfolio of contracts under advanced negotiation

The project pipeline has expanded considerably, with many small projects and an acceleration in the number of major projects.

The overall commercial pipeline therefore totalled €204 million at 31 December 2023 (compared to €166 million at 30 June 2023). It includes:

  • a €3.0 million order backlog (contracts signed to date) representing around 15 projects to be delivered over the next 12 months compared to €4.4 million at 30 June 2023;
  • over 50 projects under advanced negotiations[4], of which nine major projects for potential signature between 2024 and 2025, representing estimated potential revenues of €70 million compared to €38 million at 30 June 2023;

Over 180 projects in which the Company could participate have been identified[5], representing a total value of €131 million (compared to €124 million at 30 June 2023).

Adjusted outlook

Taking into account contracts already signed, the development of projects under advanced negotiations and the expected recovery from contract delays in 2023, OSMOSUN® forecasts a significant return to growth in 2024.

Growing water stress worldwide continues to bolster the desalination market, highlighting the considerable need for efficient and sustainable water treatment solutions which OSMOSUN is perfectly positioned to meet.

The commercial pipeline has significantly increased however decision-making cycles regarding the allocation of major projects are getting longer and weigh on the speed of their transformation into orders. Consequently, OSMOSUN push back its medium-term guidance by one year and now aims to generate revenues of €20 million with the adjusted EBITDA margin breaking 10% in 2026 (including the realisation of part of the projects currently under advanced negotiations) and €48 million revenue in 2028 with the adjusted EBITDA margin breaking 20%.

Next event : FY 2023 results presentation meeting, 24 April 2024 at 10 a.m.

Next publication : HY 2024 revenue, 23 September 2024 after market close


Projects in advanced negotiations: projects for which the Company has already made a firm offer and where the client is expected to sign within a few weeks (each qualified as PDD - preliminary detailed design) or projects already qualified and undergoing negotiation with a maturity of several months (each qualified as PSD - preliminary summary design). As such, there is a risk that they may not be converted into a firm order.

Projects identified: projects for which not all the information is known or defined and qualification is still underway (maturity of over 12 months), as well as identified projects for which initial discussions have already been held with the client. As such, there is a risk that they may not be converted into a firm order.

Total production: sold production + inventoried production + capitalized production

Gross margin: Total production – purchase of raw materials and other supplies – change in inventory – direct sub-contracting

Adjusted EBITDA: Operating income restated for net depreciation and amortisation of intangible assets and property, plant and equipment and net provision charges/reversals + research tax credit

EBITDA: Operating income restated for net depreciation and amortisation of intangible assets and property, plant and equipment and net provision charges/reversals

Adjusted operating income: Operating income+ research tax credit

Operating free cash-flow: cash flow from operations – change in working capital – cash flow from investments


Founded in 2014, OSMOSUN®'s ambition is to become a leading player in the low-carbon water market in order to make drinking water accessible to all.

OSMOSUN® has developed a unique, patented, cost-effective, clean and sustainable solution for solar-powered battery-free seawater and brackish water desalination. This innovation makes OSMOSUN® units among the most energy-efficient and cost-effective solutions in the world. The water production capacities of its units range from 1 m3 to 50,000 m3 per day.

At 31 December 2023, 69 desalination units have been sold in 27 countries.

More information: OSMOSUN® | Create water where life is


Nadège Chapelin Deborah Schwartz Hélène de Watteville
+33 6 52 50 33 58 +33 1 53 67 36 35 +33 1 53 67 36 33

[1] The annual consolidated financial statements were approved by the Board of Directors on 22 April 2024. Audit procedures have been carried out by the Statutory Auditors and the financial report will be published by 30 April 2024 at the latest.

[2] See Glossary

[3] Full Time Equivalent

[4] See glossary

[5] See glossary

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