Cenntro Inc. (NASDAQ: CENN), a leading electric commercial vehicle company, has announced its financial and operational results for the third quarter ending September 30, 2024. The company demonstrated robust growth across key financial metrics, marking a significant step toward long-term profitability.
Third Quarter 2024 Financial and Operational Highlights:
- Net Revenue: The company reported $16.7 million in net revenue, a 190% increase compared to $5.8 million for the same period in 2023.
- U.S. Sales: Sales volume in the U.S. surged to $10.3 million in Q3 2024, compared to just $0.2 million in Q3 2023.
- Adjusted EBITDA: The adjusted EBITDA loss for the quarter was $7.5 million, a significant improvement from the $12.1 million loss in Q3 2023.
- Vehicle Sales: Cenntro sold 662 electric commercial vehicles in the third quarter, up from 298 vehicles sold in Q3 2023.
- Model Highlights: In the U.S., the company sold 78 Logistar™ 400 Class 4 vehicles, compared to just one vehicle in the same period last year. In Europe and South America, Cenntro sold 334 Avantier™ vehicles in Q3 2024, a substantial increase from 21 in Q3 2023.
- iChassis Kits: Cenntro sold 230 iChassis kits in Q3 2024, compared to 103 kits in Q3 2023.
CEO Remarks:
Peter Wang, Chief Executive Officer of Cenntro, commented:
In Q3 2024, we continued our strong growth in the U.S. market, delivering 662 vehicles and increasing our total sales across regions. Our transition to focusing on North American sales and launching new models in the U.S. will contribute significantly to future growth. We introduced the Logistar® 450, a new Class 4 vehicle, which has received CARB and EPA certification, and the new Deepstar® 864 drayage truck. Additionally, Avantier Motors, our wholly owned subsidiary, launched two new EV models in Europe—Avantier Ex and Avantier Commuter.”
Wang further added, “Our California production facility has ramped up, delivering over 150 vehicles by October 2024, and is integral to our plans for further expanding in the North American market.”
Third Quarter 2024 Financial Results:
- Net Revenue: Net revenues for Q3 2024 were $16.7 million, a 190% increase from $5.8 million in Q3 2023.
- Gross Profit: Gross profit was $4.0 million, an increase of $3.3 million compared to $0.7 million in Q3 2023. The overall gross margin improved to 24.2%, up from 12.4% in Q3 2023, largely due to higher vehicle and spare parts sales.
- Operating Expenses: Total operating expenses were $14.4 million in Q3 2024, compared to $13.3 million in Q3 2023. This increase was mainly driven by higher marketing costs.
- Net Loss: The company reported a net loss of $9.0 million for Q3 2024, an improvement from a net loss of $16.1 million in Q3 2023.
- Adjusted EBITDA: Adjusted EBITDA for Q3 2024 was a loss of $7.5 million, compared to a loss of $12.1 million in Q3 2023.
Nine-Month 2024 Financial Results:
- Net Revenue: For the nine months ending September 30, 2024, net revenues were $28.4 million, an 111.2% increase from $13.5 million in the same period of 2023.
- Gross Profit: Gross profit for the nine months was $5.3 million, an increase of $3.2 million from a $2.1 million gross loss in the same period of 2023.
- Operating Expenses: Operating expenses for the first nine months of 2024 were $33.9 million, a decrease from $38.3 million in 2023.
- Net Loss: The net loss for the nine months was $27.4 million, an improvement from $41.3 million in the first nine months of 2023.
Balance Sheet:
- Cash and Cash Equivalents: As of September 30, 2024, Cenntro had $21.8 million in cash and cash equivalents, down from $29.4 million at the end of 2023.
Outlook:
Looking ahead, Cenntro is focused on diversifying its product portfolio, introducing new vehicles that align with market demand and regulations. The company aims to expand its production and distribution infrastructure, particularly in the U.S. market, as it seeks to strengthen its position in the commercial EV sector.
Cenntro’s strategic growth plan is well-positioned to capture a larger share of the electric vehicle market, leveraging its innovation and expanding product lines across global markets.
