VivoPower(VVPR) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Half year revenue decreased by 23% year-on-year to $8.7 million, primarily due to project timing and a decline in the Australian dollar against the U.S. dollar [4] - Gross profit decreased by$3.1 million year-on-year to negative $3.6 million, with a GP margin decline to negative 42$3.9 million from negative $4.5 million in the prior period, while operating losses increased to negative$8.2 million from negative $7.7 million [7] Business Line Data and Key Metrics Changes - Tembo achieved revenues of$0.9 million for the half year, with an underlying EBITDA loss of negative $0.5 million [19] - The distribution partner network expanded with over 5,000 additional kits in the commitment and order book pipeline [20] Market Data and Key Metrics Changes - The company faced challenges due to skill shortages impacting the ability to take on new projects [5] - The Kenshaw Electrical business is starting to build its order book and pipeline, executing a three-year agreement with Glencore [17] Company Strategy and Development Direction - The company is focused on ramping up assembly and production, as well as deliveries over the next six to twelve months [18] - Strategic progress includes expanding the distribution partner network and entering larger secondhand addressable markets [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing financial results due to weather-related issues but expressed confidence in executing objectives for the second half of the year [27] - The company is taking advantage of the current EV market conditions to recruit talent from other companies [15] Other Important Information - The company was recognized as one of the best B Corps in the world for governance and as a top 300 global impact company for the third consecutive year [11] - The Edenvale project, which incurred significant losses, is expected to conclude by the end of February 2023 [16] Q&A Session Summary Question: What are the expectations for the future? - The company expressed confidence in executing on its objectives for the second half of the year despite recent financial disappointments [27]