Eevia Health Plc Interim Report Q2 - 2023
Significant events during the second quarter of 2023:
- Net sales1 grew by 16% from KEUR 1 710 in Q1-23 to KEUR 1 985 in Q2-23. Net sales between Q2-22 and Q2-23 grew by 8% (from KEUR 1 835 in Q2-22 to KEUR 1 935 in Q2-23).
- The gross profit in Q2-23 landed at KEUR 1 352, an improvement of 137% from KEUR 989 in Q1-23 and up 216% from KEUR 627 in Q2-22. The gross margin2 was 68% in Q2-23, up from 58% in Q1-23 but in line with 68% in Q2-22. The increase since the previous quarter is due to higher volumes of high-margin products, as well as continued improvements in production and purchasing.
- Eevia benefited from a high-margin product mix in both the first and the second quarters. The gross margin without the effect from side-stream products was approximately 62% in Q2-23.
- EBITDA in Q2-23 was strong, reaching a record KEUR 639, compared to KEUR 260 in Q1-23 and KEUR -21 inQ2-22. The improvement between Q1-23 and Q2-23 was KEUR 379 (up 46%), stemming mostly from an increase in gross margin. There were insignificant non-recurring costs in Q2-23.
- The net result for Q2-23 was a solid KEUR 413. It came after an improvement of KEUR 396 compared to Q1-23 (KEUR 17) and KEUR 701 compared to Q2-22 (KEUR -288).
- Cash flow from operations was up 202% to KEUR 331 in Q2-23 compared to KEUR 162 in Q1-23, and up from KEUR 12 in Q2-22. The improvements stem from the improved operational performance.
- The significant production efficiency increases seen during the last few months, have over time reduced the labor requirements at the Company's production facility for the same volume of production. Consequently, a reduction in production personnel and a transition from a 24/7 (21 shift) to a 24/5 (14 shifts) operational model was negotiated with the personnel group in June and is being implemented. The change in the operational model is expected to reduce production personnel costs by KEUR 50 per quarter in the near term compared to a four recent quarter average.
- The BioMap study undertaken with Eurofins on all of Eevia's main product lines and one selected competitor product per product line was put in progress in May. The study is supported by Business Finland, which provided funding that triggered this effort. There is significant excitement and expectations for the results of these scientific efforts. Theresults are expected in August 2023.
- Eevia introduced a new tart cherry extract product line to the market which is focused on cognitive health and sleep quality.
- The Annual Shareholders meeting on June 30, 2023, authorized the Board to issue up to 10 million new shares.A directed share issue was executed and concluded on August 14, resulting in 5 364 513 new shares being issued at SEK 2,15 per share, with gross proceeds to the Company before fees of SEK 11 533 703.
1) Sales revenues excluding trading revenues.
1) 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 August 23rd, 2023.
For further information, please contact:
Stein Ulve, CEO, Eevia Health Plc
Email: [email protected]
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
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.