EEVIA HEALTH Plc REPORTS STRONG GROWTH AND IMPROVEMENT IN PROFITABILITY AND CASH FLOW FOR SECOND QUARTER 2022
Eevia Health Plc ("Eevia" or "The Company") is releasing its quarterly financial report for the second quarter of 2022.
Summary of the second quarter 2022 (Q2-22):
- Net sales grew by 23% from KEUR 1 491 in Q2-21 to KEUR 1 835 in Q2-22. By eliminating raw material trading revenues of KEUR 122 in Q2-21, the adjusted net sales increased by 34%, from KEUR 1 369 in Q2-21 to KEUR 1 835 in Q2-22.
- Net sales in Q2-22 also grew by 11% compared to Q1-22. After eliminating trading revenues in Q1-21, the net sales grew 14%, from KEUR 1,617 in Q1-22.
- Gross profit in Q2-22 came in at KEUR 651, up from KEUR 360 in Q2-21 and KEUR 214 in Q1-22. The gross profit in the quarter represents a gross margin of 35%. With this, Eevia is on track to achieving its long-term profitability targets. Management expects the gross margin to improve in the future.
- EBITDA for Q2-22 was close to breakeven at KEUR -70 compared to KEUR -442 in Q2-21 and KEUR -412 in Q1-22, an improvement of KEUR 372 and KEUR 314 respectively. The improvement stems from implemented changes in production protocols and efficiency improvements from new equipment installations.
- The net result for Q2-22 was KEUR -337, an improvement of KEUR 216 compared to Q2-21 (KEUR -553) and KEUR 274 from Q1-22 (KEUR -611).
- Cash flow from operations was positive with KEUR 12 despite a significant reduction in accounts payable and received advances of KEUR 888. This was a significant improvement compared to the negative cash flow of KEUR -383 in Q2-21 and KEUR -1 095 in Q1-22.
- Several key equipment installations, such as a new decanter increasing liquid-solid separation capacity by 400%, came online in Q2-22.
- Eevia launched a new Lingonberry product, with a first order sold to Australia in June.
- Towards the end of Q2, Eevia secured a credit line of KEUR 800 for working capital purposes to finance its continued growth. The term of the credit line is until December 31, 2022. Interest is charged at one and a half percentage points (1.5%) per month.
- In July, Gabriella Beni (CFO), decided to leave the Company for personal reasons. Eevia is now recruiting a new, permanent CFO. Financial administration support in the transition period is provided by the financial accounting and services company Rantalainen (www.rantalainen.fi).
- The Annual Shareholders Meeting on June 21st elected Oskar Wegelius as a new board member, while the other members of the board were re-elected. The board now consists of five members. Oskar Wegelius holds a Master of Science in chemical, biochemical, and materials Engineering from Aalto University, with a major in biomass refining. He currently works as an Area lead at Borealis in Finland, responsible for new investments, process engineering, and plant commissioning.
For additional information, please contact:
Stein Ulve, CEO Eevia Health Plc
Mobile: +358 400 22 5967
Email: [email protected]
This disclosure contains information that EEVIA HEALTH PLC is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on August 29, 2022.
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 to 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 EEVIA.
To learn more, please visit www.eeviahealth.com or follow Eevia Health on LinkedIn @EeviaHealth.
Om Eevia Health
Eevia Health targets health problems with bioactive extracts from plant material. The human body has an incredible ability to restore good health. However, sometimes the body needs active support. Our mission is to support good health and well-being with plant extracts which have scientifically documented health benefits. Eevia Health manufactures and markets organic ingredients from abundant plant material in the Arctic. Our products are targeted against low-grade inflammation, problems in eye and brain health, and metabolic effects. We collaborate with scientists in Finland and abroad to scientifically substantiate the positive effects of ingredients and also to document the safety of use.
