Eevia Health Plc Interim Report Quarter 4 - 2021

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.

Significant events after December 31, 2021:

  • A new Chief Manufacturing Officer, Harri Salo, commenced a new management position in the production organization at the beginning of January, Q1-21. Harri Salo has a strong track record as an operational manager in several companies last 18 years. We communicated the new hire in a press release on January 10, 2022.
  • Eevia doubled its chromatography capacity on February 20th, by adding two new chromatography columns with a total of 1600 liter resin capacity. Eevia now holds a resin capacity of 4.000 liters and six columns. The added chromatography capacity will support both yield improvement and throughput (productivity through increased capacity)

Proposal for the distribution of the result:

The Board of Directors proposes that the result for 2021 is carried forward to 2022. Accordingly, the Board of Directors proposes that no dividend is distributed for the financial    year 2021

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 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 are organically certified. Our portfolio includes vital products such as Feno-Myrtillus® 36 Organic (high concentrate bilberry extracts with 36% anthocyanins) and Fenoprolic® 70 Organic (pine bark extracts with 70% oligomeric proanthocyanidins).  

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 2021, with the short name EEVIA.

To learn more, please visit  www.eeviahealth.com or follow Eevia Health on LinkedIn @EeviaHealth. 

Comments from our CEO

In two to three years, I expect that we will look back at 2021 as the year of adolescence for Eevia Health.

2021 came with significant milestones for the Company in organizational development, production capacity, business systems, and information technology. In addition, it made considerable leaps in customer size, quality, and incoming prospects; and, importantly, it was a year of vital improvements in professionalism and reporting.

In 2021, we almost tripled our workforce; in certain areas, we tripled production capacity (as the picture to the right illustrates). Furthermore, we implemented new advanced business systems, such as ERP and business intelligence systems. We strengthened our capability for preventive maintenance through new routines and the implementation of a modern surveillance and control system (Spotilla.fi). Finally, we added our first large multi-year contract, worth c. MSEK 100 in revenue, and we listed the Company's shares on Spotlight Stock Market.

We often recognize adolescence by the excitement of fast growth and disruption, growth pains, unexpected challenges, and sometimes frustration. Eevia Health certainly experienced all of these during the year, with the fourth quarter of 2021 being no exception.

Firstly, in Q4-21, it became even more evident that Eevia Health faces significant market opportunities in the next few years. We saw a surge in requests for quotes and sales contracts from leads, prospects, and customers during the quarter despite meager marketing efforts. The high level of interest demonstrates the position Eevia Health is moving into and the depth of the nutraceutical market.

We still have a significant sales order backlog. Due to the production disruptions experienced during the year, Eevia needed to delay deliveries to customers. The delays have forced us to remain cautious in accepting new orders, carefully managing the incoming demand from customers, and increasing inquiries. In November, we visited customers in the USA. The trip provided encouraging confirmations about the strength of the market for nutraceuticals and our market position. We expect the US market to remain a strong driver of our growth in the next few years.

On the other hand, Q4 served us specific unexpected production challenges too. While the start of Q4 showed improvements in production volumes compared to Q3, productivity and yields remained a challenge throughout the quarter. These challenges were further amplified by discrepancies between internationally accepted measurement method standards for expressing the amount of bioactive in a key product manufactured by Eevia. Analytical issues led to delays in shipments of products produced during the quarter, and hence a delay in realized sales.

Strong investigative efforts by Eevia experts resolved the misalignment in the measurement method. The Company is looking to recover the economic effects of the misalignment in 2022 and propose improvements to the United States Pharmacopeia monograph for these methods.

Following the installation of new equipment, lower productivity rates resulting from a natural learning curve are to be expected. The Eevia-team identified the root causes of the manufacturing challenges in late Q4, and we are implementing a plan for mitigating these causes. We continue to show improvements in our manufacturing processes as we speak and expect to improve both yields (margins) and productivity during the first half-year of 2022.

All in all, 2021 was a transformational year. Eevia Health was a very different company exiting 2021 than entering it. I expect 2022 to be the first year of young adulthood for Eevia Health, with new competitive advantages and continued rapid growth.

I am sincere in my conviction that we are in the process of building a unique and competitive international ingredients business. We are committed to delivering over MEUR 25 in turnover in 2024, with over 40% gross margin and EBITDA above 15% of turnover. I thank all colleagues, customers, and shareholders for your trust and patience, and I look forward to enjoying a positive development in 2022.

Sincerely yours,

Stein Ulve

CEO

Key ratios

The table below shows the critical ratios for January to December 2021 and 2020:

 

 1 January  - 31 December

 

2021

2020

     

NET sales, KEUR

6 671

2 866

EBITDA, KEUR

-2 099

-694

Net result of the period, KEUR

-2 635

-1 023

Earnings per share, EUR*

-0,16

-0,06

Shareholders' equity per share, EUR*

0,22

0,03

Average number of employees

28

9

     

Share related key ratios 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

The total current number of shares amounts to 15,973,356 shares. Eevia has only one share series.

At the Annual General Meeting in June 2021, the shareholders resolved to authorize the Board of Directors to decide on the issuance of options to key employees. The AGM approved a maximum number of 706,000 shares for this option program. Based on this authorization, the Board has distributed 200,000 share options so far.

Annual general meeting 2022 and Financial Statement for 2021

The Board is arranging for the Annual General Meeting 2022 on June 21, 2022, and the Financial Statement for the year 2021 will be published on the Company's website (www.eeviahealth.com) 3 weeks before the meeting at the latest.

Future Reports

   

Interim report January - March 2022 (Q1-22)     May 27, 2022

Annual General Meeting 2022                              June 21, 2022

 

Interim report April - June 2022 (Q2-22)             August 22, 2022

 
   

For further information, please contact:

Stein Ulve, CEO, Eevia Health Plc                       Kim Nurmi-Aro, CFO, Eevia Health Plc

Email: [email protected]                      [email protected]

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 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. 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 2021, with the short name EEVIA.

To learn more, please visit www.eeviahealth.com or follow Eevia Health on LinkedIn @EeviaHealth.

Nerladdningsbara filer

Eevia Health Plc receives a 230 KSEK/21 KEUR starting sales order for a new Lingonberry product to a new customer

Eevia Health Plc, ("Eevia" or "The Company"), has received a 21 KEUR sales order from its Australian distributor Ingredients Plus for a new product made from Lingonberry, after a new customer has decided to launch a new product with the Lingonberry ingredient as a key component.


Eevia Health Plc has secured a credit line of SEK 8 million for working capital purposes to finance continued growth

Eevia Health Plc, ("Eevia" or "The Company"), has entered into an agreement whereby Exelity AB, Sweden will provide a credit line for Eevia of up to SEK 8 million, giving the Company increased working capital flexibility to finance its continued growth.


Communique from the Annual General Meeting in Eevia Health Plc

The Annual General Meeting of Shareholders of Eevia Health Plc, corp. reg. no 2825194-4 (the "Company") was held on June 21, 2022 in Seinäjoki, Finland, whereby the shareholders primarily resolved the following matters:


Eevia Health Plc receives a 2,3 MSEK/0,23 MEUR sales order for organic bilberry extract

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.


Notice of the Annual General Meeting of Shareholders 2022

The shareholders of Eevia Health Abp, company registration number 2825194-4 in Finland, are hereby called for the Annual General Meeting (AGM) to be held on June 21st 2022.


Eevia Health Plc publishes Financial Statements for 2021

Eevia Health Plc's (''Eevia'' or ''the Company'') Financial Statements for 2021 together with the Auditors' report have been published today.



Eevia Health Plc successfully participates at Vitafoods trade show in Geneva

Eevia Health Plc, ("Eevia" or "The Company"), is taking part in the trade show "Vitafoods" in Geneva this week (10-12 May 2022).


Eevia Health Plc receives a 3,3 MSEK/0,33 MEUR sales order for bilberry extract

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 appoints a Shareholders' Nomination Committee

Eevia Health Plc, ("Eevia" or "The Company") has appointed a Shareholders' Nomination Committee


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