The Board and CEO of Eevia Health Plc hereby present the Interim Report for the second quarter 2021, covering the period April 1st through June 30th, 2021. The complete report with tables is attached to this release as a pdf-file. It is also available on the company website at www.eeviahealth.com
Significant events during the second quarter of 2021:
- Eevia experienced another reporting period with significant sales growth. Net sales for the second quarter of 2021 increased by over 250% compared to the same period in 2020. Net sales amounted to KEUR 1 491 (KEUR 423) or KEUR 1 369, excluding trading revenue[1]. Eevia's strong revenue development during the quarter demonstrates the company's ability to deliver on its long-term growth plan despite the temporary disruptions following the installation of new machinery.
- EBITDA for the period came in at KEUR -443 (KEUR -51) or KEUR -351 excluding transaction costs related to the IPO1. EBITDA for the quarter was affected by non-recurring costs related to the installation of new machinery and the IPO.
- On June 29th, Eevia was listed, and trading of shares started on Spotlight Stock Market in Sweden[2]. In connection with the listing, the company carried out an oversubscribed initial public share offer (IPO), which provided approximately MEUR 2,5 in new equity funding before transaction costs.
- Eevia completed a significant milestone in June, by entering into a multi-year sales agreement with a key international customer. The first three years of the sales agreement provides for minimum contracted sales of circa SEK 100 million. The new contract significantly increased the order reserve and, hence, created a strong base for operational planning for the next few years.
- The company successfully executed the initial phase of the current year's two-step CAPEX plan, including the installation of a new evaporator, a thawing tank, a frozen block crusher, a new loading system, automation software, as well as other automation and process improvements. The installations were done in May and June, with completion of commissioning after the end of the quarter, in late July.
- In May, the company signed a KEUR 400 loan agreement with OP-Pohjola bank, that enabled a kick-start of certain critical investments in new capacity, prior the finalization of the IPO fundraising.
- A new Board was elected in May. Johanna Panula, who has a long and merited management career from Novo Nordisk, entered the Board, improving the Board competence within pharmacology, nutrition, and regulatory affairs.
Significant events after 30 June 2021:
- The first phase of a planned capacity increase and plant improvement as communicated in the Investor memorandum was completed with commissioning of the equipment in late July. The newly installed machines and technologies are working satisfactorily, with improved yield, productivity, and cost efficiency. These investments support the company's strong growth and strategic positioning, as communicated in the May 2021 information memorandum.
Comments from our CEO
Eevia continued its strong development in the second quarter this year. The period became heavily dominated by three main activities:
- The final sales negotiations with a major US customer for a three-year sales agreement with sales value of SEK 100 million
- The engineering, installation, and commissioning of several key new processing equipment in the first phase of a two-phase investment program for 2021; and
- The preparations to list the company's shares on Spotlight Stock Market in Stockholm.
The efforts behind each of these activities were significant and came on top of normal operational activities. The organization delivered well on all three fronts. The company signed a major SEK 100 million sales agreement on June 11th. We commissioned several new equipment during the quarter, which was finally completed late July. And, on June 29th, the company was listed on Spotlight Stock Market, after a 400% subscribed IPO equity issue.
All three activities are key enablers to achieving the company's long term business goals, and as CEO, I am both impressed and proud of the performance of the team, as well as the Board and our advisers. We came through and reached our targets, lifting the company to a new level while staking out a clear course for the next few years.
I was also happy to see that at the end of the quarter, production started to capitalize on the new equipment, with improved capacity, yields and gross margins starting to materialize! While the commissioning of the new equipment during this summer also involved certain operational disruptions in July, we are in a good position for the second half of 2021.
As we are experiencing an increasingly advanced and automated production set-up, we are also working to develop deeper technical competence in the company's staff. Strong systems, competence and organizational agility are needed to run a more technically advanced manufacturing plant. Hence, developing the technical competence of our operators and shift leaders, through training and performance measurements, is a key target for the second half 2021.
The global market for nutraceutical ingredients is growing steadily. With the improved financial strength and new investments, Eevia is well placed to maintain its efforts to become a leading manufacturer globally of organically certified nutraceutical ingredients. We will continue these efforts in the second half of the year, capitalizing on our improved factory set-up by targeting new customers, while consolidating our relationship with existing clients.
With the improved financial strength and new investments, we are confident on delivering over MEUR 25 in turnover in 2024 with over 40% gross margin and EBITDA above 15% of turnover.
Wishing you a healthy and safe end of the summer.
Stein Ulve
CEO
Key ratios
The key ratios for January to June 2021 and 2020 are shown in the table below:
| 1 Jan - 30 Jun | 1 Jan- 31 Dec | |||
| 2021 | 2020 | 2020 | ||
| NET sales, KEUR | 4 724 | 763 | 2 866 | |
| EBITDA, KEUR | -539 | -175 | -694 | |
| Net result of the period, KEUR | -725 | -244 | -1 023 | |
| Earnings per share, EUR* | -0,05 | -0,02 | -0,07 | |
| Shareholders' equity per share, EUR* | 0,26 | 0,09 | 0,03 | |
| Average number of employees | 29 | 9 | 13 | |
| Share related key ratios have been calculated according to the following formulas: | ||||
| Earnings per share, EUR | Net result of the period / 13 682 700 shares | |||
| Shareholders' equity per share, EUR | Total Equity / 13 682 700 shares |
[1] [Net sales include trading of raw material as part of a raw material sourcing scheme, totaling KEUR 122 during Q2 2021. Deliveries of raw material ended as planned in April 2021, and total deliveries under this scheme during the first half of 2021 amounted to KEUR 1 440. The deliveries were done to secure raw material that Eevia can call on in the future to secure customer orders. As such, these revenues are completed with insignificant margins.]
About Eevia
Eevia Health Plc, founded in March 2017, addresses significant health problems with bioactive compounds extracted from plant materials. The materials are mostly wild harvested and key raw materials are harvested from the pristine Finnish and Swedish forests near or above the Arctic Circle. The extracts are sold B2B to dietary supplements and food brands globally, who utilize the products as ingredients in their consumer product formulas.
Eevia Health is fast-growing Finnish manufacturer of 100% organically certified plant extracts. Most of its raw materials, such as bilberry, lingonberry, chaga-mushroom, and pine bark, are wild-harvested in a sustainable fashion. The safe and effective ingredients of high quality, such as high concentrate bilberry anthocyanin extracts (36% anthocyanins) and pine bark extracts (70% oligomeric proanthocyanidins), are organically certified.
Eevia Health operates a modern green-chemistry production facility in Finland, located close to the raw material harvest areas. The short value-chain enables an environmentally friendly carbon footprint, competitive pricing, and extreme transparency. Eevia is listed at Spotlight Stock Market with the short name EEVIA.
To learn more, please visit www.eeviahealth.com or follow Eevia Health on LinkedIn @EeviaHealth.
Eevia Health Plc, ("Eevia" or "The Company"), has received a sales order from its Australian distributor Ingredients Plus. Ingredients Plus serves leading nutraceutical brands in Oceania and Asia with high-quality ingredients. The end customer is a major natural health company based out of Sydney, Australia selling its products across Asia and Oceania.
Eevia Health Plc, ("Eevia" or "The Company") has appointed a Shareholders' Nomination Committee
Eevia Health Plc, ("Eevia" or "The Company") has appointed Select Ingredients, San Diego, California, USA, as new distributor in the territory of the USA.
Eevia Health Plc ("Eevia" or "The Company") is welcoming Gabriella Beni as our new Chief Financial Officer. Kim Nurmi-Aro will leave the Company on March 16th and the Company wishes him the very best in his new professional endeavors close to his home in the city of Vaasa. Gabriella Beni will take over the position on March 17th.
Eevia Health Plc ("Eevia" or "The Company"), a leading health ingredient manufacturer from Finland, today announces that it has entered a multi-year sales agreement. The sales agreement is with a Finnish customer to supply a specialty protein and fiber plant extract with excellent nutritional values and versatile product applications for the global nutraceutical market.
Significant events during the fourth quarter and full-year 2021:
- Net sales for the year grew by over 130% compared to 2020, amounting to the total revenue of KEUR 6,671.
- During Q4, 2021 Net sales amounted to KEUR 658 compared to KEUR 1,534 in 2020. The underlying Net Sales in Q4, 2021 was KEUR 801. The underlying revenue was higher than the reported revenue. Eevia credited one sold batch in Q4-21 that needed reprocessing. Eevia will resell the batch in Q1-22.
- EBITDA for Q4, 2021 came in at KEUR -811 (KEUR -409).
- Eevia added several new prospects to the pipeline during the period, and the Company has ongoing negotiations for long-term contracts.
- The order reserve increased in Q4-21. As previously communicated, among new orders were:
- an MSEK 3,4 / MEUR 0,34 sales order for highly concentrated bilberry extract (Feno-Myrtillus® 36 Organic).
- New sales orders for organic pine bark extract (Fenoprolic® 70 Organic).
- A human clinical study concluded on Feno-Chaga® Organic was completed with positive results, Scientific documentation of the efficacy of Eevia's plant extracts is a crucial factor in growing customer interest and sales of Eevia's products.
- Eevia Health successfully completed an equity issue with proceeds of KEUR 1,903 in Q4-21.
- Eevia made a significant drive in Q4-21 to become a leader in environmental sustainability and occupational safety. We launched several new actions to reduce emissions and strengthen our sustainability. The initiative included testing various technologies, such as reversed osmosis, nanofiltration, and ultrafiltration. The target is to minimize emissions of organic compounds to air and wastewater. Reducing emissions is the right thing for the environment and supports our brand as the most sustainable extracts producer.
Eevia Health Plc, ("Eevia" or "The Company"), is welcoming Harri Salo as our new Chief Manufacturing Officer. Harri Salo has a 15-year strong career in operations and production management in international industrial business environments. He will start Monday, January 10th, and significantly strengthen Eevia Health's management capacity and competence for developing production organization, operation, and business processes.
Eevia Health Plc, ("Eevia" or "The Company"), has received a large sales order from its Australian distributor Ingredients Plus. Ingredients Plus serves leading nutraceutical brands in Oceania and Asia with high quality ingredients. The end customer is a major natural health company based out of Sydney, Australia selling its products across Asia and Oceania.
The sales value of this order is c.335,000 EUR and the product is Feno-Myrtillus 25 bilberry extract. The order is expected to create repeat sales of this product going forward.