Eevia Health Plc Interim Report Q2 - 2024

The Board and CEO of Eevia Health Plc present the Interim Financial Report for quarter 2, 2024.

Financial developments and significant events in  the second quarter of 2024

•  Net sales1 decreased to KEUR 410 in Q2-24 from KEUR 671 in Q1-24 or 39%. Compared to Q2-23, net sales were down by KEUR 1 575 from KEUR 1 985, or 79%. Note that net sales for Q1-24 (and Q4-23) in the Q1-24 was restated in June from originally reported KEUR 407 for Q1-24. The restatement was after recognition of certain revenues was moved from December to January due to a mid-shipment change of delivery terms.
•    Gross profit in Q2-24 was KEUR 311, a decrease of 16% from KEUR 372 in Q1-24 and 77% from KEUR 1 352 in Q2-23. The gross margin was 76% in Q2-24, up from 55% in Q1-24 and up from 58% in Q2-23. The improvement since Q1-24 is due to a beneficial product mix.
•    EBITDA in Q2-24 was KEUR—198, compared to KEUR—103 in Q1-24 and positive KEUR 639 in Q2-23. The KEUR 95 reduction in EBITDA between Q1-24 and Q2-24 mainly stemmed from lower revenues in Q2-24 compared to the previous quarter. Prior to the Q1-24 restatement, EBITDA for Q1-24 was KEUR -212.
•    Financial expenses peaked at KEUR 132 due to significant costs related to short-term loans and bridge loans.
•    The net result for Q1-24 was negative, with KEUR - 558 compared to KEUR - 387 in Q1-24 and a net profit of KEUR 414 in Q2-23.
•    Cash flow from operations was negative, with KEUR – 269 in Q2-24 compared to KEUR - 254 in Q1-24 and a positive cash flow of KEUR 331 in Q2-23. The decrease in operating cash flow stems primarily from changes in working capital during the period and negative EBITDA.
•    Eevia secured a short-term loan from a Danish fund of KEUR 627, which inter alia was used to repay a credit line of KEUR 304 that was taken up in Q1-24.
•    Eevia successfully secured a total subscription of SEK 17,2 million before fees in a rights issue in June.
•    We are now working on clinical substantiation in the new Condition Specific Extract product group. A global partner is preparing a clinical trial, which they will fund, on one of our product lines. We are applying for national non-dilutive research funding to undertake one clinical study ourselves.
•    The large US customer representing most of sales revenues in 2022 and 2023, but currently on hold, visited and audited the Company in Finland in May as preparation for future restart of commercial orders.
•    Eevia is still negotiating with a local food producer about contract manufacturing of a custom-made extract in 2025. The process has taken longer than anticipated, but we expect to finalize discussions during H2.
•    Eevia was accepted as partner in VALIO’s FOOD 2.0 VETURI PROGRAM

 

For further information, please contact:

Stein Ulve, CEO, Eevia Health Plc                          

Email: [email protected]                      

Telephone: +358 400 22 5967                         

This disclosure contains information that EEVIA HEALTH PLC must make public according to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication through the contact person’s agency on August 21, 2024, at 14:10 CET.

 

 

  

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, and these global brands utilize the ingredients in their consumer product formulas.

Eevia Health manufactures 100% organically certified plant extracts. Our commitment to sustainable and organic manufacturing practices, such as wild harvesting our raw materials and operating a modern green chemistry production facility, ensures the highest quality products for our customers.

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. In June 2021, Eevia listed its shares on the Spotlight Stock Market in Sweden under the short name EEVIA.

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