Eevia Health Plc Interim Report Q1-2022


Significant events during the first quarter of 2022:

  • Net sales grew by 152% from KEUR 658 in Q4-21 to KEUR 1,659 in Q1-22. Eliminating raw material trading revenue of KEUR 42 in Q1-22 and non-recurring revenue effects of KEUR 143 during Q4-21, the adjusted net sales increased by 102%, from KEUR 803 in Q4-21 to KEUR 1,617 in Q1-22.
  • Compared to net sales in Q1-21, which was the record sales quarter so far for the Company with KEUR 3,234, net sales in Q1-22 were lower. However, raw material trading revenues dominated Q1-21. After excluding the trading revenues in Q1-21, the net sales from operations were only 15,6% lower in Q1-22 than in Q1-21, with KEUR 1,617 in Q1-22 compared to KEUR 1,917 in Q1-21.
  • The significant growth in Q1-22 compared to the previous quarter is evidence that the Company has primarily solved the production issues experienced during the latter half of 2021. While revenues in the first quarter fell slightly short of the record first quarter of last year, Eevia is well on track to continue its growth trajectory.
  • EBITDA for Q1-22 came in at KEUR -412 (KEUR -94), with a notable improvement in March, as explained below. Eevia has continued to see improvements in profitability so far in the second quarter, with April being close to break-even on the EBITDA level. The Company expects the improvements to continue into June. The improvements validate that the mitigation plan communicated in the Q4-2021 report has provided expected impacts.
  • The net result in Q1-22 was KEUR -611, which improved KEUR 419, or 41%, compared to Q4-21.
  • Eevia finalized several key equipment installations during Q1-22 and made critical adjustments to its production protocols. The new equipment provided significant improvements in yields and productivity during March and will continue to do so in the second quarter. The increased capacity has enabled Eevia to get back on track with the delivery schedule on sales contracts and removed a backlog that impacted sales since Mid 2021.
  • Some examples of the critical equipment installations during Q1-22 are:
    • Eevia almost doubled its chromatography capacity on February 20th.
    • A new decanter was installed in March (commissioned in April). It provides a 500% increase in capacity for liquid-solid separation of extraction masses and  significantly reduces processing time, which improvesboth yields and productivity.
    • New analytical measurement devices were installed in-line in the manufacturing process, such as two new absorbance meters and a new refractory meter (for measurements of solids). Compared to waiting many hours for lab results, these new measurement devices provide instant (real-time) measurement of the bioactive compound being extracted and purified. The instant measures significantly improve the process- and yield control.
  • A new Chief Manufacturing Officer, Harri Salo, joined Eevia in January. Mr. Salo's competence has already had a significant impact on project management, improved operational control, and quality of production planning.
  • A new Chief Financial Officer, Gabriella Beni, joined Eevia in March. Ms. Beni has significant competence in financial administration and has strengthened Eevia's financial control and profitability management ability.

Comments from our CEO

When considering the underlying performance trends, the first quarter of 2022 was hectic but satisfying. The quarter provided the significant improvements in yields and throughput we expected from to the mitigation plan we initiated in Q4-21. We made progress across the Board, increased our production output, ramped up product shipments, and developed the sales pipeline.

As set out in the introduction, the production team successfully finalized critical installations, which increased our manufacturing capacity and improved performance control. These new capabilities lay the foundation for leaps in yields, margins, productivity, and sales. The effects of these improvements came at the end of the quarter. Our financials do not yet fully reflect the underlying performance and progress in profitability.

The beginning of 2022 also saw a transformation of our management team. Two key recruits joined Eevia, Harri Salo as the new Chief Manufacturing officer and Gabriella Beni as our new Chief Financial Officer. The two strenghten our competence and capability for professionalmanagement and financial control of Eevia.

As for all economic activity these days, the market situation in our segment is somewhat more turbid than it has been in the last 18 months. The war in Ukraine, high inflation, labor shortages in crucial market territories, and continued global logistical challenges all create some uncertainty. However, these factors also constitute opportunities, as reliable manufacturers of nutrition products from suppliers in stable democracies are becoming even more valued by large international brand holders. We still see growth in the overall market. Major players have a positive outlook. We were pleased to see that the activity in the Vitafoods tradeshow in Geneva in early May was vigorous.

Our sales pipeline is in transformation driving growth from new products and customers. The new capacities have allowed Eevia to recover the backlog and catch up with the delivery schedule of contracts. That will enable us to be less restrictive with new leads and prospects. We are now opening our order acceptance for a broader range of products and new larger sales contracts.

As we proceed with further sales efforts towards our 2024 targets, we aim to maintain a stringent profitability focus, a target which is now easier to achieve with the recent production improvements.

Sincerely yours,
Stein Ulve

Key ratios

The table below shows the critical ratios for Q1-2022 and Q1-2021, and January to December 2021 and 2020:

  January 1st - March 31st   January 1st- December 31st
  2022 2021 2021 2020  
Net sales, KEUR 1 659 3234 6 671 2 866  
EBITDA, KEUR -412 -94 -2 099 -694  
The net result of the period, KEUR -611 -169 -2 635 -1 023  
Earnings per share, EUR* -0,04 -0,02 -0,16 -0,06  
Shareholders' equity per share, EUR* 0,18 0,14 0,22 0,03  
The average number of employees 26 29 28 9  

Share related key rations have been calculated according to the following formulas: 

Earnings per share, EUR  Net result of the period/15,973,356 shares

Shareholders' equity per share, EUR Total equity/15,973,356 shares

The Share and shareholders

The total current number of shares amounts to 15,973,356 shares. Eevia has only one share series. The shareholders have authorized the Board of Directors to decide on the issuance of options to key employees with a maximum number of 706,000 shares. Based on this authorization, the Board has distributed 100,000 share options.

Future Reports

Interim report April - June 2022 (Q2) August 29th, 2022
Interim report July - September 2022 (Q3) November 25th, 2022
Year-End Report 2022 (Q4) February 24th, 2023 

Income Statement 

(KEUR)   Jan-Mar Jan-Mar   Jan-Dec Jan-Dec  
  Ref. 2022 2021   2021 2020  
 Net Sales 1 1 659 3 234   6 671 2 866  
 Other income  2 57 0   15 117  
 Total revenues   1 716 3 234   6 686 2 982  
 Operating Expenses              
 Material and external expenses    -1 445 -2 690   -5 847 -2 200  
 Personnel expenses   -482 -372   -1 502 -698  
 Other operating expenses   -201 -266   -1 437 -778  
 Total Operating Expenses   - 2 128 -3 327   -8 786 -3 676  
 EBITDA   -412 -94   -2 100 -694  
 Depreciation   -184 -84   -490 -229  
 OPERATING PROFIT (LOSS)   -596 -178   -2 589 -923  
 Financial income and expenses   -15 9   -46 -100  
 PROFIT/-LOSS BEFORE TAXES   -611 -169   -2 636 -1 023  
 Taxes   0 0   0 0  
 NET PROFIT/-LOSS FOR THE PERIOD   -611 -169   -2 635 -1 023  

1. For Jan-Mar 2022, Net sales include KEUR 42 for sourcing and sale of raw materials as part of customer-provided financing. For Jan-Dec 2021, the amount related to the sale of materials for financing purposes was KEUR 1 317.

2. For Jan-Mar 2022, Other income includes KEUR 57 capitalized own labor work associated with installations of capital assets.

Balance Sheet

ASSETS (KEUR) Mar-31 Mar-31   Dec-31 Dec-31
  2022 2021   2021 2020
Fixed assets          
Intangible assets 774 493   716 406
Tangible assets          
Equipment, machines, and tools 2654 1 456   2 559 1 221
Total fixed assets 3 428 1 949   3 275 1 627
Other long-term receivables 24 24   24 24 
Current assets          
Inventory 2 100 2 884   2 369 3 474
Trade receivables and other receivables 1 307 1 133   1 011 603
Cash at bank 365 524   1 859 678
Total current assets 3 772 4 540   5 239 4 755
TOTAL ASSETS 7 225 6 514   8 538 6 406
EQUITY AND LIABILITIES (KEUR) Mar-31 Mar-31   Dec-31 Dec-31
  2022 2021   2021 2020
Share Capital 80 10   80 10
Reserve for invested unrestricted equity 8 802 4 402   8 802 3 167
Retained earnings/loss -5 381 -2 746   -2 746 -1 722
Profit (loss) for the period -611 -169   -2 635 -1 023
Total Equity 2 889 1 497   3 501 431
Long-term liabilities          
Loans from credit institutions 406 170   406 170
Other long-term liabilities 0 82   0 82
Current liabilities          
Other short-term loans 84 0   145 596
Advances received 2 397 2 963   2 939 3 945
Accounts payable 994 1 560   1 129 983
Other liabilities and accruals 455 242   419 198
Total liabilities 4 336 5 017   5 038 5 974
TOTAL EQUITY AND LIABILITIES 7 225 6 514   8 538 6 406

Cash Flow Statement

(KEUR) Jan-Mar Jan-Mar   Jan-Dec Jan-Dec
    2022 2021   2021 2020
Operating activities          
  Profit/-Loss before taxes -611 -169   -2 638 -1 023
Adjustments for items not included in the cash flow: 184 84   497 233
Cash flow before change in working capital -427 -85   -2 138 -790
Cash flow from changes in working capital: -668 -301   58 1 124
  Increase (-) or decrease (+) in current interest-free receivables -296 -530   -408 -395
  Increase (-) or decrease (+) in inventories 269 590   1 105 -3 159
  Increase (+) or decrease (-) in current interest-free payables -640 -361   -640 4 678
Cash flow from operations before financial items and taxes -1095 -386   -2 080 335
Cash flow from extraordinary items 0 0   0 0
Cash flow after operating activities -1 095 -386   -2 080 335
Investment activities          
  Investments in intangible and tangible assets -338 -406   -2 138 -1 090
Cash flow from investment activities -337 -406   -2 138 -1 090
Financing activities          
  New Share issue 0 1136   5 606 0
  New loans 0 0   400 848
  Repayment of long-term borrowings -61 -497   -606 0
Cash flow from financing activities -61 639   5 400 848
Change in cash and equivalents -1 494 -154   1 182 93
Cash and cash equivalents at the beginning of the period 1 859 678   678 584
Cash and cash equivalents at the end of the period 365 524   1 859 678

Segmentation of sales and gross margin

Eevia's Net Sales in Q1-22 included KEUR 42 in trading revenues related to sourcing raw materials. The adjusted gross margin for Q1-22 decreased from 21 to 13%. The reported margin is average for the quarter. The margins in first half of the quarter were impacted by low potency berries. A major improvement to the protocols was finalized end of February. The gross margin in March was 28,5%. The increase in March was also due to improvements in yields and productivity related to the commissioning of new production equipment. Eevia maintains a long-term target gross margin level above 40% by 2024.

    Segmentation of EBITDA, Jan-March 2022 Reported Income Statement
(KEUR) Ref. Operations Trading Non-recurring
 Net Sales   1 617 42 0 1 659
 Other income    57  0  0 57
 Total revenues   1 674 0 0 1 716
 Operating Expenses          
 Material and external expenses    -1 403 -42 0 -1 445
 Personnel expenses   -482 0  0 -482
 Other operating expenses 1 -151  0 -50 -201
 Total Operating Expenses   - 2 036 -42 -50 -2 128
 EBITDA   -362 0 -50 -412
  Ref. Apr-Jun - 21 Jul-Sep - 21 Oct-Dec - 21 Jan-Mar - 22
 Product sales   1 369 560 801  1617
 Product standardization 2     -143  
 Raw material sales   122 730 0 42
 Net Sales   1 491 1 289 658 1 659
  Ref.  Apr-Jun - 21 Jul-Sep - 21 Oct-Dec - 21 Jan-Mar - 22
 Product sales   1 369 560 801 1 617
 Material and external expenses    -1 009 -422 -633 -1 403
 Gross margin   360 138 168 214
 Gross margin %   26 % 25 % 21 % 13 %

1) Non-recurring costs related to financing activities (commission, etc.)
2) The adjustment in Q4-21 was related to a product return which was resold at same price3) The gross margin in March was 28,5%

Basis of preparation

The financial information in this interim financial report has been prepared in accordance with the Finnish Accounting Act (30.12.1997/1336, as amended), Finnish Accounting Ordinance (30.12.1997/1339, as amended), and instructions and statements of the Accounting Board operating under the Ministry of Employment and the Economy (FAS) unless otherwise stated. The Company applies the same recognition and classification principles in this interim financial report as its financial statements for December 31st, 2021. 

This interim financial report is unaudited.

Statement by the Board of Directors

The Board of Directors and the Chief Executive Officer do at this moment certify that this interim report contains a fair representation of the Company's operations, financial position, and results and describes any significant risks and uncertainties the Company faces.

All statements of a forecasting nature in this report are based on the Company's best assessments on the report's publishing date. As with all forecasts, such statements contain risks and uncertainties, and the actual results can differ.

Seinäjoki, May 27th, 2022

The Board of Directors and the CEO of Eevia Health Plc

For additional information, please contact: 

Gabriella Beni, CFO  

Eevia Health Plc  

Mobile: +358.0.407.48.8666

Email: [email protected]

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 Aric 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 or follow Eevia Health on LinkedIn @EeviaHealth. 

Nerladdningsbara filer

Eevia Health Plc received small initial sales order for Feno-Sambucus™ from Australia

Eevia Health ("Eevia" or "The Company") received a start order for the Feno-Sambucus™ worth SEK 110 000 from its Australian distributor Ingredient Plus. The order is a new start order for an Australian brand owner.

Eevia Health Plc receives a 445 KSEK / 41 KEUR sales order for a Bilberry extract product

Eevia Health Plc's ("Eevia" or "The Company") has received a 41 KEUR sales order for Bilberry extract from its distributor in France Natural Ingredients.

Eevia Health Plc commissions new analytical equipment for analyzing anthocyanins and polyphenols

Eevia Health has commissioned a new High-Performance Liquid Chromatography (HPLC) analytical equipment from Shimadzu, which significantly increases the capacity to undertake analyses of polyphenols.

Eevia Health Plc receives a renewed Kosher certificate

Eevia Health Plc, ("Eevia" or "The Company"), has re-established its Kosher certification. The Jewish Community of Helsinki has validated Eevia's Kosherization and certified the Kosher and Parve status of the company products.

Eevia Health Plc Interim Report Q3 - 2022

Eevia Health Plc ("Eevia" or "The Company") is releasing its quarterly financial report for the third quarter of 2022.

Eevia announce that the rights issue was fully subscribed

Eevia Health Plc ("Eevia" och "the Company") announces today the outcome of the Rights Issue, whose subscription period ended on November 15, 2022, where a total of 14 376 015 shares, corresponding to 100 percent of the offered shares, have been allocated. 9 233 685 shares (64 percent) were subscribed with subscription rights, and 5 142 330 shares (36 percent) were subscribed without subscription rights, corresponding to 100 percent of the Rights Issue. Through the Rights Issue, the Company will raise proceeds of approximately SEK 21.6 million before deducting costs related to the Rights Issue. No guaranteed commitments have been utilized.  

Eevia Health Plc secured a short-term loan of NOK 2 million

To timely secure raw materials for its recent order intake of large quantities of bilberry products, Eevia Health Plc ("Eevia" or "The Company") has secured a short-term loan of NOK 2 million from its largest shareholder, Betulum AS (Norway).

Eevia Health Plc received its first sales order for its new cognitive health ingredient product, Feno-Cerasus™, made from the tart cherry of SEK 223k

Following a successful exhibition at the Supply Side West trade show in Las Vegas, US, last week, Eevia Health received a start order for its new cognitive health product, the Feno-Cerasus™, for SEK 223k. The new product was launched last week and is a standardized anthocyanin extract from tart cherry (Prunus Cerasus). Eevia Health focuses on the cognitive effects of the latest product, including sleep quality and quantity, memory, stress, and cortisol levels.

Eevia Health Plc received new sales order for Feno-Sambucus™ for the equivalent of c. SEK 34.4 million

Following a successful exhibition at the Supply Side West trade show in Las Vegas, US, last week, Eevia Health ("Eevia" or "The Company") received an order for the Feno-Sambucus™ equaling a revenue of SEK 34.4 million. The order is a new contractual volume section related to a five-year Sales Agreement with a US brand owner. The new section has adjusted prices and terms.

Eevia Health Plc launches a new dietary supplement ingredient, Feno-Cerasus™, for cognitive health at a key industry trade show, Supply Side West in Las Vegas, US

Eevia Health has developed a new plant extract with product benefits for cognitive health and improved sleep. The new product, Feno-Cerasus™, is launched today at a major trade show in Las Vegas, US, the Supply Side West. The new ingredient is a standardized anthocyanin extract from tart cherry (Prunus Cerasus). Eevia Health focuses on the cognitive effects of the new products, including sleep quality and quantity, memory, as well as stress, and cortisol levels.

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