Danimer Scientific Inc. (DNMR) stock prices were down 13.72% at the end of the trading day on August 16th, 2021. This brought the price per share down to USD$13.27. Subsequent premarket fluctuations saw the stock increase by 10.02%, bringing it up to USD$14.60.
DNMR Stock’s Green Initiative
The second quarter of fiscal 2021, saw DNMR stock make progress in its mission to create consumer packaging and other biodegradable products. This is in line with the company’s initiative to address the global plastic waste crisis. The team completed its Kentucky debottlenecking initiative to improve our production efficiency for Nodax based resins. The company substantially strengthened our capital resources to usher in further growth.
Acquisition of Novomer
August 2021 saw the company close its previously announced acquisition of Novomer Inc. The company expects the combination to accelerate the company’s ability to deliver their proprietary packaging products. These products are delivered to leading consumer product clients, serving as a milestone transaction for Danimer. The transaction is forecasted to create important efficiencies in our manufacturing of biodegradable polymers. The company expects this to help the company continue building its industry leading capabilities in application development.
Scope of DNMR Stock’s Expansion
The company is keen to leverage its competitive advantage, which is the result of its decade long experience blending products. This enables its next gen biopolymers to perform to the standards set by leading consumer product firms. The acquisition will strengthen DNMR stock’s core competence, as well as enabling an increase in the expected overall volume of finished product able to be delivered. These initiatives will be executed in conjunction with significant lowering of production costs and capital expenditure per pound produced.
Revenue Breakdown
Revenues for the second quarter of 2021 were up 22% to USD$14.5 million as compared to reports from the second quarter of 2020. This year over year difference was largely driven by the scale up of PHA production for Phase 1 of the Winchester facility, which was brought on line in 2020. PHA-based products expanded to 29% of total revenue, compared to 7% in the 2020 quarter. Q2 2021 also saw DNMR stock benefit from a USD$1.8 million increase in revenue related to R&D projects.
Future Outlook for DNMR Stock
The company reports a strong quarter, rife with various promising developments. The company is keen to leverage the resources at its disposal to usher in further growth. Investors are hopeful that management will be able to facilitate significant and sustained increases in shareholder value.
