The Board and CEO of Eevia Health Plc now present the Interim Report for the third quarter of 2021, covering the period 1 July through 30 September 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 third quarter of 2021
- Eevia experienced 350% growth in sales in Jan-Sep 2021, compared to the same period 2020.
- Similarly, the Company had 125% growth in sales in Q3, 2021 compared to Q3, 2020.
- We finalized a major part of the second phase of the 2021 investment plan in Q3, including several critical installations. New installations increased capacities, improved quality aspects, and implemented automation in production. While installations resulted in disruptions to production, the investments are key to securing profitable, high-volume production in the upcoming years and facilitate serving multiple large customers.
- We also identified and initiated several new investment initiatives to further drive Eevia's focus on limiting the Company's environmental footprint. Eevia works to reduce all emissions in its drive to operate sustainably. The Company aims to be a global leader in environmentally friendly, green chemistry production of nutraceutical ingredients.
- Over 1 million kg of high-quality berries (IQF[1]) were procured during Q3-21, leaving the berry raw material inventory in warehouses near the factory at over 2 million kilos. This stock secures raw materials for significant portions of contracted sales for the rest of 2021 and 2022.
- During Q3, Eevia received significant new customer prepayments for products, enabling Eevia to procure raw materials for its contracted volumes in 2022. These financing arrangements cement Eevia's strong relationship with customers and are a testament to its position as a trusted supplier.
- The Eevia team implemented a new preventive maintenance system (Spotilla), a new Enterprise Resource Planning system (Lemonsoft ERP), and a new Business Intelligence system (Microsoft Power BI) during the quarter. These new management systems significantly improve management processes and quality.
- Net sales amounted to KEUR 1,289 (KEUR 569) or KEUR 560, excluding trading revenue.
- EBITDA for the period came in at KEUR -750 (KEUR -110).
Significant events after 30 September 2021
- On 10th November 2021, Eevia announced that it has resolved, subject to approval at an Extraordinary General Meeting, on a directed share issue of SEK 20 million. The proceeds will be used primarily for investments in increased capacity to better meet current and future demand, as well as better utilization of waste streams and increased capacity to meet new unique commercial opportunities. A notice has been given to the shareholders of Eevia Health Abp (Plc) to the Extraordinary General Meeting to be held on 9th of December, 2021. The Board of Directors proposes that the Extraordinary General Meeting resolves to authorize the Board of Directors to decide, in one or more transactions, on the issuance of shares against payment. The number of shares to be issued based on the authorization may in total amount to a maximum of 2,061,856 shares.
Comments from our CEO
The last nine months have been eventful for Eevia Health. Since September last year, our team grew from nine people to a force of twenty-eight by November 2021. The execution of our business plan to secure large multi-year contracts started with the SEK 100 million agreement with a leading US customer announced in June. We are expanding our capacity to be able to accommodate additional customers. During the first nine months of 2021, we have increased our sales by 350%, and we are well-positioned for growth in 2022. I want to thank all colleagues, customers, and shareholders for enabling this development.
During the third quarter of 2021, we made significant improvements in our operations, installing several new machines and systems. New automation and software tools came online, allowing us to streamline our operational and financial processes further. We have trained new operators and prepared Eevia for the next phase of our growth trajectory. These efforts are showing positive results for us in terms of better capacity, productivity, and control. Installation work negatively impacted production volumes in Q3, but the start of Q4 shows a significant increase in production volumes compared to Q3.
The factors mentioned above negatively impacted deliveries and invoicing during the quarter, but did not result in lost sales. We still have a significant sales orders backlog. There is strong demand in the market and an increase in incoming inquiries.
As I write this letter, I am visiting the US for the first time in over a year. Meeting with customers provides encouraging confirmations about the strength of the market for nutraceuticals, particularly plant extracts. The pandemic boosted the demand for nutraceuticals, especially in areas such as immune health. At the same time, there is a shift from artificial ingredients to completely natural products. Our customers in the US see no signs of the growth slowing down. The market for plant extracts is expected to double between 2020 and 2025.
As manifested during Q3, our main challenge is ramping up production to meet customer demand. Besides the planned capacity investments, we identified in Q3 several new investment opportunities with short payback time, which will allow us to produce specific products in parallel and at a lower cost. These investments also support our drive for sustainability. New solutions will lower our emissions, utilize waste streams as sellable products, and reduce the consumption of resources such as water. To finance the additional CAPEX related to these initiatives, we decided to fundraise in November.
As we move into the latter parts of a highly eventful year for Eevia, I am encouraged by the positive outlook of our customers and their confidence in continued market growth. I am proud of the respect and positioning we have established with our key customers; and with production volumes now picking up, I remain confident in our ability to continuously increase productivity and achieve our long term goals. We have a sizeable sales-order reserve and a strong pipeline of prospects and leads, which will drive growth also in 2022 and 2023. We have procured a large portion of the required raw materials for sales in 2022, and with improved operations, we enter 2022 with a strong posture. We are committed to the financial target of delivering over MEUR 25 in turnover in 2024 with over 40% gross margin and EBITDA above 15% of turnover.
Greetings from America,
Stein Ulve
CEO
Key ratios
The table below shows the key ratios for January to September 2021 and 2020:
| 1 Jan - 30 Sep | 1 Jan - 31 Dec | |||
| 2021 | 2020 | 2020 | ||
| Net sales, KEUR | 6 013 | 1 332 | 2 866 | |
| EBITDA, KEUR | -1 289 | -285 | -694 | |
| Net result of the period, KEUR | -1 604 | -434 | -1 023 | |
| Earnings per share, EUR* | -0,11 | -0,03 | -0,07 | |
| Shareholders' equity per share, EUR* | 0,19 | 0,07 | 0,03 | |
| The average number of employees | 28 | 9 | 13 | |
| We have calculated share related key ratios according to the following formulas: | ||||
| Earnings per share, EUR | The net result of the period / 13,951,500 shares | |||
| Shareholders' equity per share, EUR | Total Equity / 13,951,500 shares |
[1] IQF - Individual Quick Frozen
For further information, please contact:
Stein Ulve, CEO, Eevia Health Plc Kim Nurmi-Aro, CFO, Eevia Health Plc
Email: stein.ulve@eeviahealth.com kim@eeviahealth.com
Telephone: +358 400 22 5967 +358 504 44 0717
About Eevia
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 to dietary supplements and food brands globally. These global brands utilize the ingredients in their consumer product formulas.
Eevia Health is a fast-growing Finnish 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's branded ingredients, such as Feno-Myrtillus® Organic (high concentrate bilberry extracts with 36% anthocyanins) and Fenoprolic® 70 Organic (pine bark extracts with 70% oligomeric proanthocyanidins), are organically certified.
Eevia Health operates a modern green-chemistry production facility in Finland. The factory operates near the raw material harvest areas. A uniquely short value chain enables an environmentally friendly carbon footprint, competitive pricing, and extreme transparency. Eevia listed its shares at Spotlight Stock Market in Sweden in June 2020, 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.