Biome Bioplastics, the bioplastics division of UK-based biotechnology company Biome Technologies, announced its revenues for 2024 will be ‘materially below current market expectations’.
The group said in a trade update that it continues experiencing subdued revenues following ‘production and regulatory difficulties’ at two of Biome Bioplastics’ end customers in the first quarter of the year.
It added that ‘whilst demand from a number of the division’s customers remains robust, there are some signs that the wider coffee packaging market in North America… is not as buoyant as in previous periods’.
Biome Bioplastics produces a range of heat-resistant, industrially biodegradable, food-contact approved bio-resins, of which the latest addition is BiomeHTX: a fibre-reinforced grade, designed specifically to produce stiff and strong injection-moulded parts. The resin has been designed to provide structure for coffee pods, whilst at the same time preventing deformation when exposed to hot water brewing conditions.
The company said it expects ‘revenues of significance’ to return later in 2024, as technical validations are finalised by its two affected customers. Nonetheless, Biome Technologies expects it will make a ‘small loss’ in the year ending Dec. 31, 2024.
In response, shares in the Southampton-based firm were down 42.86% to GBP 0.40 in the London Stock Exchange on July 8.
Biome Bioplastics first commercialised its heat-stable and compostable bioplastic for coffee pod applications in 2019. The material was developed in the division’s R&D facility in Southampton, UK and is now being manufactured in the United States on a regular production basis in commercial quantities.