De.mem Limited (ASX:DEM) Reports Record Cash Receipts and Positive Cash Flow
Record Financial Performance
De.mem Limited (ASX:DEM) announces record December Quarter results with cash receipts of approximately $7.4 million. This marks the second highest cash receipts in the company’s history. Total full-year cash receipts reached approximately $28.4 million, a 15% increase from the prior year.
The company has achieved 23 consecutive quarters of cash receipts growth compared to the prior corresponding periods, demonstrating solid growth momentum despite previous industry challenges. Notably, De.mem recorded positive operating cash flows of $533,000 for the December Quarter, following a positive flow of $82,000 in the previous quarter.
Operational Insights
De.mem’s recurring revenue profile remains robust, with about 90% of cash receipts derived from its long-term service contracts. The company’s gross margins improved significantly, reaching 40% in the first half of CY 2024, which outperforms the industry average of 38.7% as per the Baird water technology index.
The integration of recent acquisitions, Border Pumpworks and Auswater Systems, has further supported cash receipts, contributing approximately $1.28 million since mid-CY 2024.
CEO Comments
Andreas Kroell, CEO of De.mem, expressed satisfaction with the company’s performance: “I am pleased to report another record quarter with strong cash receipts growth and positive net operating cash flows. Importantly, we have met the key milestone of achieving net operating cash flow positive for the full calendar year 2024.” Kroell highlighted the strong outlook for CY 2025, supported by ongoing market conditions and product launches.
Future Prospects
The company expects continued growth momentum in 2025, driven by its recurring revenue base, successful integration of recent acquisitions, and new product launches in the domestic water filtration market. The anticipated revenues from the North American market also promise additional financial benefits.
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