Spinnova Plc’s Half-Year Report January–June 2022 (unaudited): Production scaling strategy and commercialisation proceeding according to plan
SPINNOVA PLC COMPANY RELEASE 8 SEPTEMBER 2022 AT 8:45 A.M. EEST
Spinnova Plc’s Half-Year Report January–June 2022 (unaudited):
Production scaling strategy and commercialisation proceeding according to plan
This release is a summary of Spinnova’s Half-Year Report for January to June 2022. The complete report is attached to this release and also available on the company’s website at https://spinnovagroup.com/reports/.
January to June 2022
- Revenue grew to EUR 7 635 thousand (EUR 370 thousand)
- Operating loss for the period was EUR 5 825 thousand (EUR 3 093 thousand loss)
- Total investments were EUR 7 435 thousand (EUR 2 949 thousand)
- Net cash was EUR 95 059 thousand (EUR 98 354 thousand)
- The number of permanent employees at the end of the period grew to 69 (49)
Significant events during H1 / 2022
- 10 February: First commercial product made with a SPINNOVA® blend launched with adidas
- In May the management team was strengthened by appointing Allan Andersen as Chief Sales Officer and Teemu Lindberg Executive Vice President, Production Scaling
- 2 June: Woodspin increased its capital investment budget by EUR 9 million to enhance sustainability and R&D capabilities and account for cost inflation.
- 3 June: Chief Product Officer Lotta Kopra resigned from her operative role continuing as an Advisor
- 14 June: Kim Poulsen was appointed as the new CEO of Spinnova and Janne Poranen was appointed Chair and Harri Sundvik as Deputy Chair of Spinnova Board of Directors, as of 1 August 2022
Significant events after the period
- 1 September: General Counsel Lasse Holopainen was appointed to the management team
Unless otherwise specified, all figures presented in this Half-Year Report in brackets refer to the corresponding period of the previous year. The information in the half-year report is unaudited. Information concerning the full year 2021 is based on the audited financial statements for 2021.
Outlook for 2022 (unchanged):
The medium-term business targets Spinnova has set in June 2021 are to achieve 150 thousand tonnes of production capacity, to be EBIT positive and have up to 20 brand partners. Spinnova will continue to work towards these targets and execute its strategy according to plan in 2022. Its target market is growing, and the demand for sustainable textile materials is very strong. Spinnova expects to complete the building of the first Woodspin factory on time and for it to be operational at the end of 2022. Spinnova expects to continue to launch commercial editions of products with its brand partners.
During 2022, Spinnova’s revenues are expected to grow in comparison to 2021, driven primarily by higher technology sales of the project deliveries to Woodspin and Respin. During 2022, whilst Spinnova focuses on investing in growth and production scaling, the company is not expected to be profitable.
Spinnova Plc’s key figures
| EUR (thousand) | 1-6/ 2022 |
1-6/ 2021 |
1-12/ 2021 |
| Revenue | 7 635 | 370 | 6 063 |
| Operating profit / loss | -5 825 | -3 093 | -7 172 |
| Earnings per share (EUR, diluted and undiluted) 1) | -0.15 | -0.30 | -0.36 |
| Net debt | -95 059 | -98 354 | -100 093 |
| Equity ratio, % | 87% | 90% | 92% |
| Number of permanent employees at the end of the period | 69 | 49 | 58 |
| Number of permanent employees, average | 65 | 43 | 49 |
1) The company’s potential dilutive instruments consist of stock options. As the company’s business has been unprofitable, stock options would have an anti-dilutive effect and therefore they are not taken into account in measuring the dilutive loss per share. Thus, there is no difference between the undiluted and diluted loss per share. The number of shares in the historical figures is adjusted with the two share splits that took place first in May 2020 in which the number of shares was multiplied by 10 and then in May 2021 in which the number of shares was multiplied by 30.
CEO’s review
The first half of 2022 was a time of many exciting changes for Spinnova. I was humbled and honoured to start as Spinnova’s CEO on August 1st continuing the outstanding work of co-founder Janne Poranen. Our ambitious goal is to scale and commercialise SPINNOVA® fibre technology and production with our highly dedicated and talented team.
Succeeding in our strategy is dependent on our world class people. During the first half of the year, we have completed recruitments of key personnel in order to implement our ambitious plan. For Spinnova, safety and well-being of employees is our number one priority, and we continue to develop first class processes.
SPINNOVA® is a climate positive textile fibre
Our breakthrough technology sets Spinnova apart. Carbon handprint calculations made for the first Spinnova commercial factory in 2022 showed that the production value chain is expected to save more CO2 emissions than it emits, making SPINNOVA® fibre a climate positive textile material. This is a huge advantage in the textile market where the shift to sustainable materials is speeding up.
First commercial products launched by brand partners
In the first half of 2022, we were excited to announce the first commercial products with our brand partners adidas and ARKET. These products are made with a SPINNOVA® fibre and cotton blend, demonstrating SPINNOVA® as a sustainable premium textile ingredient brand suitable for commercial use. Product development continues with our many brand partners, and we aim to continue introducing new commercial products throughout the year.
Scaling proceeding as planned
The commercialisation and scaling strategy is proceeding according to plan. The demand for sustainable fibre continues to increase in the nearly EUR 200 billion annual revenue global textile fibre market.
This year our main focus has been building our first commercial factory for Woodspin (50/50 JV between Spinnova and Suzano). The construction and technology deliveries are both on track to be completed by the end of 2022. In order to enhance sustainability and R&D capabilities of the factory as well as to account for cost inflation, Woodspin decided to increase the capital investment budget for Woodspin by EUR 9 million. We want to have the best possible concept in place when Woodspin starts operating.
Respin’s (50/50 JV between Spinnova and Ecco) pilot factory has been running successfully during the current year and we are starting to plan the commercialisation phase according to schedule. Spinnova is the exclusive technology provider for Woodspin and Respin. Technology sales to both companies have realized according to the timetable, which can be seen in our sales growth.
The next phase of scaling is Woodspin's second factory for which Woodspin has started feasibility planning. Spinnova as exclusive technology provider has started the pre-engineering work for the technology concept for this factory.
Spinnova’s technology is ready to scale and I look forward to executing our growth strategy further together with the whole team. I would like to thank our world class team, partners, customers and investors for their continuous support.
Kim Poulsen
CEO
In Jyväskylä, 8 September 2022
Spinnova Plc
Board of Directors
Half-Year Report Webcast
Spinnova arranges a half-year webcast event in conjunction with the Half-Year Report Thursday, 8 September at 11.00 a.m. EEST where Spinnova’s CEO Kim Poulsen and CFO Ben Selby will discuss the company’s January-June events and financial performance.
The webcast language is English and a Finnish subtitled recording will be available the following day on the investor website. The event is open to all investors and media representatives.
For webcast registration please visit:
https://spinnova.videosync.fi/half-year-results-2022/
More information:
Kim Poulsen
Chief Executive Officer
Spinnova Plc
+358 20 703 2430
Certified advisor:
Aktia Alexander Corporate Finance Oy
+358 50 520 4098
Distribution:
Nasdaq Helsinki
Key media
Spinnova – Sustainable textile materials, naturally
Spinnova transforms the way textiles are manufactured globally. Based in Finland, Spinnova has developed breakthrough patented technology for making textile fibre out of wood or waste, such as leather, textile or agricultural waste, without harmful chemicals.
The SPINNOVA® fibre creates zero waste and side streams or microplastics, and its CO2 emissions and water use are minimal. SPINNOVA® materials are quickly biodegradable and circular. Spinnova is committed to using only sustainable raw materials such as FSC certified wood and waste. SPINNOVA® fibre is produced without harmful or complex chemical processes, and has the touch and feel of natural fibres such as cotton and linen.
Spinnova has received awards from e.g. the Fast Company, ISPO, Scandinavian Outdoor, ANDAM, Monocle and Marie Claire UK.
Spinnova’s shares (SPINN) are listed on the Nasdaq First North Growth Market Finland.
SPINNOVA® home: www.spinnova.com
Corporate & IR site: www.spinnovagroup.com