Eevia Health Plc ("Eevia" or "The Company") is releasing its quarterly financial report for the first quarter of 2023.
Summary of the first quarter 2023 (Q1-23):
- Net sales1 grew by 20% from KEUR 1 420 in Q4-22 to KEUR 1 710 in Q1-23. Net sales between Q1-22 and Q1-23 grew by 6% (from KEUR 1 617 in Q1-22 to KEUR 1 710 in Q1-23) when excluding revenue of KEUR 42 from trading
of raw materials in Q1-22. - The gross profit in Q1-23 landed at KEUR 989, an improvement of 362% from KEUR 214 in Q1-22. The gross margin2 was 58%, up from 13% in Q1-22. The increase is due to the improvements achieved in production and purchasing throughout 2022. From Q4-22 to Q1-23, the gross profit rose by KEUR 23, but the gross margin declined from 68% to 58% in the period. The change is due to significant contract manufacturing in Q4-22 not continued in Q1-23.
- Eevia benefited from a high-margin product mix in the first quarter. Furthermore, Eevia is continuing the efforts of valorizing several production side streams containing fruit sugars and fibers. If successful with these valorizations, Eevia would be able to produce a high volume of these new products which could improve profitability and sustainability. However, this will require business development and penetration of new markets, with no certainty of success. The gross
margin without the effect from side-stream products was approximately 56% in Q1-23. - Eevia Health was awarded a non-dilutive grant of KEUR 242 from Business Finland. The funding will be provided when the project is completed. One of the two work packages in the project is related to the valorization and commercialization of the side-stream products.
- EBITDA in Q1-23 was positive at KEUR 260, compared to a KEUR -412 negative EBITDA in Q1-22 and KEUR 17 in Q4-22. The improvement between Q1-22 and Q1-23 was KEUR 672, stemming mostly from an increase in gross margin due to better bioactive recovery (yields) and improved productivity. There were no non-recurring costs in Q1-23.
- The net result for Q1-23 was positive with KEUR 17. It is the first positive quarterly net result for the company. It came after an improvement of KEUR 628 compared to Q1-22 (KEUR -611) and KEUR 529 compared to Q4-22 (KEUR -512). The improvement stems from increased revenue, improved production performance, and the discontinuation of the non-recurring financial costs that were incurred in Q4-22.
- Cash flow from operations was positive with KEUR 162 in Q1-23, up from negative cash flows from operations of KEUR -1 095 in Q1-22 and KEUR - 989 in Q4-22. The improvements over MEUR 1 stem from the improved operational
performance.
1) Sales revenues excluding trading revenues.
2) Gross profit in % of net sales
This disclosure contains information that EEVIA HEALTH PLC is obliged to make public according to the EU
Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on May 16th, 2023.
For further information, please contact:
Stein Ulve, CEO, Eevia Health Plc
Email: stein.ulve@eeviahealth.com
Telephone: +358 400 22 5967
INFORMATION ABOUT EEVIA HEALTH PLC
Eevia Health Plc, founded in March 2017, addresses significant health problems with bioactive compounds extracted from plant materials. The materials are primarily wild harvested from the pristine Finnish and Swedish forests near or above the Arctic Circle. The extracts are sold B2B as ingredients in dietary supplements and food brands globally. These global brands utilize the ingredients in their consumer product formulas.
Eevia Health is a manufacturer of 100% organically certified plant extracts. Although a significant product, Elderberry extract, is made from cultivated berries, most of Eevia's other raw materials, such as bilberry, lingonberry, chaga-mushroom, and pine bark, are wild-harvested in a sustainable fashion.
Eevia Health operates a modern green-chemistry production facility in Finland. Manufacturing natural ingredients near the raw material harvest areas, Eevia offers a short value chain with an environmentally friendly carbon footprint, competitive pricing, and extreme transparency. Eevia listed its shares at Spotlight Stock Market in Sweden in June 2021, with the short name (ticker) EEVIA.
To learn more, please visit www.eeviahealth.com or follow Eevia Health on LinkedIn@EeviaHealth