Hoffmann Green Cement Technologies Societe anonyme's (EPA:ALHGR) Shift From Loss To Profit

Hoffmann Green Cement Technologies Societe anonyme (EPA:ALHGR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Hoffmann Green Cement Technologies Societe anonyme designs, produces, distributes, and markets low carbon cements. With the latest financial year loss of €6.7m and a trailing-twelve-month loss of €5.8m, the €108m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Hoffmann Green Cement Technologies Societe anonyme will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Hoffmann Green Cement Technologies Societe anonyme

According to the 3 industry analysts covering Hoffmann Green Cement Technologies Societe anonyme, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of €5.9m in 2025. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 81% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Hoffmann Green Cement Technologies Societe anonyme given that this is a high-level summary, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 33% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Hoffmann Green Cement Technologies Societe anonyme to cover in one brief article, but the key fundamentals for the company can all be found in one place – Hoffmann Green Cement Technologies Societe anonyme's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Historical Track Record: What has Hoffmann Green Cement Technologies Societe anonyme's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Hoffmann Green Cement Technologies Societe anonyme's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.