Amyris reports record revenue from renewable products

By Erin Voegele | November 06, 2014

Amyris Inc. has released third quarter financial results, reporting record renewable product revenue of $11.5 million. Record revenue and lowered production cost resulted in the first quarter of positive product gross margin.  

"During the third quarter, we delivered more than $27 million in renewable product sales and collaboration inflows. As we further optimized production for multiple molecules at our Brotas biorefinery, we continued to see lower production costs, contributing to our first quarter of positive product gross margin,"said John Melo, president and CEO of Amyris. "We remain focused on executing our business plan, growing our revenues and inflows and managing our expenses wisely. Based on our strong operational performance and the continued progress of our consumer care business, including both our fragrance oil and emollients products, we believe we can achieve positive cash flow from operations while tracking to double our annual revenues.”

Renewable product sales grew by 66 percent over the first nine months of the year, when compared to the same period of the prior year. Quarterly product sales and collaboration inflows of $27.2 million resulted in a non-GAAP EBITDA loss of $2.2 million, or 3 cents per share. On a GAAP basis, revenues were $16.3 million, resulting in a net loss of $36.6 million, or 46 cents per share.

According to Amyris, the company introduced a new farnesene strain at its Brotas biorefinery in Brazil at the end of the quarter. That strain has been delivering stable production with higher volume and lower costs. The company also indicated it is continuing to expand its product portfolio with the planned introduction of VOC-compliant solvent for industrial cleaning and the addition of European airline customers for renewable jet fuel.

During an investor call to discuss the quarterly results, Melo noted the company is nearing its objective of achieving positive cash flow from operations. Despite a below average weather and sugarcane harvest in Brazil this year, Melo said the company’s plant has been running for nearly three months without any unscheduled interruptions. This is a sign that our technology works at scale and that our people and operations are performing well, he said. The Brotas facility is expected to continue operations until the sugarcane season comes to a close. While the plant is capable of operating on alternative feedstock during the offseason, Melo said planned maintenance will be performed before the plant resumes production in early 2015.   

Melo also spoke briefly about the company’s squalane, fragrance, and farnesene-derived products, along with its fuels and lubricants products. Regarding the company’s biobased jet fuel, Melo said the Amyris has begun the commercialization of renewable jet fuel with increasing flights. The company is in the final stage of regulatory approval for jet fuel in Brazil and is expected to begin selling jet fuel into that market following that ratification. Amyris also has agreements in place in Europe and is in discussions with multiple partners in the Middle East and Asia. In addition, Amyris’s renewable diesel fueling more than 400 diesel buses in Brazil.