Eevia Health Plc Interim Report Q3 - 2023

Significant events during the third quarter of 2023:

Net sales1 decreased by 20% from KEUR 1 148 in Q3-22 to KEUR 917 in Q3-23. Compared to the second quarter this year, Net sales decreased by 54%, from KEUR 1 985.

The gross profit in Q3-23 landed at KEUR 347, a decrease of 52% from KEUR 725 in Q3-22 and down 70% from KEUR 1 352 in Q2-23. The gross margin2 was 38% in Q3-23, down from 63% in Q3-22 and 68% in Q2-23. The decrease since the previous quarters is due to a changing product mix. There was no effect on gross margin from side-stream products in Q3-23.

EBITDA in Q3-23 was KEUR 2 compared to KEUR 56 in Q3-22 and KEUR 639 in Q2-23. The reduction in EBITDA between Q3-22 and Q3-23 was KEUR 54, a decrease of 48% stemming mostly from lower turnover and lower gross margin. The drop was partly mitigated by significantly reduced personnel and overhead costs in the period. Year to date, Eevia's EBITDA stands at KEUR 901 as of the end of Q3-23.

The Net result for Q3-23 was negative with KEUR 317 compared to negative KEUR 377 in Q3-22 and positive KEUR 413 in Q2-23. Financing costs related to equity issues in Q3-22 and Q3-23 contributed significantly to the negative results. The Net result year-to-date 2023 is positive with KEUR 113.

Cash flow from operations was negative with KEUR 1 023 in Q3-23 compared to a negative KEUR 280 in Q3-22, and down from a positive cash flow of KEUR 331 in Q2-23. The change stems from the lower EBITDA, investments in R&D, and changes in working capital in the period, including an increased receivables balance following shipment of volumes in the latter half of the period.

Due to significant improvements in production efficiency, Eevia has over time reduced the labor requirements at the Company's production facility by approximately 25% without losing output capacity. A transition from a 24/7 (21 shift) to a 24/5 (14 shifts) operational model was executed in August. In connection with the change in the operational model during the summer and somewhat lower volume requirements, certain additional temporary layoffs helped further reduce personnel costs during the quarter.

The company's marketing was ramped up, with several new whitepapers, articles, trade show exhibitions, and recruitment of new distributors taking place in Q3-23. Eevia produced much more marketing "content" in Q3-23 than in 2020, 2021, 2022, and the first half of 2023 combined. This includes data from the completed BioMAP study3, which enables Eevia to substantiate health benefits for the products to the market in a new way. Brand awareness is improving rapidly, and the sales opportunity pipeline is growing fast, with over 40 meetings and over 160 decision-makers engaged at a recent tradeshow in the US.

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.

A commercial bank loan of KEUR 495 was received from Nordea in Q3-23.

1) Sales revenues excluding trading revenues.
2) Gross profit in % of net sales
3) BioMAP was executed with Eurofins and their lead compound discovery platform based on human primary cells

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 November 22, 2023.