Spinnova Plc’s Half-Year Financial Report January-June 2022 (unaudited): Scaling and commercialization of production proceed according to plan
This release is a summary of Spinnova’s Half-Year Financial Report January-June 2022. The full report is attached to the release and is also available in the company’s online service at https://spinnovagroup.com/fi/katsaukset/.
January-June 2022
- Revenue increased to EUR 7,635 thousand (EUR 370 thousand)
- Operating loss for the review period was EUR 5,825 thousand (operating loss EUR 3,093 thousand)
- Total investments amounted to EUR 7,435 thousand (EUR 2,949 thousand)
- Net cash received EUR 95,059 thousand (EUR 98,354 thousand)
- The number of permanent employees increased to 69 (49) during the period.
Significant events in the six-month period 2022
- 10.2. The first commercial product made from SPINNOVA® blend was launched with adidas
- In May, the Management Team was strengthened by appointing Allan Andersen as Sales Director and Teemu Lindberg as Head of Production Scaling
- 2.6. Woodspin increased the private equity budget of the mill project by EUR 9 million to strengthen environmental and R&D capabilities and take into account cost inflation
- 3.6. Chief Product Officer Lotta Kopra resigned from her operative position to continue as advisor to the company
- 14.6. Kim Poulsen was appointed as spinnova’s new CEO, Janne Poranen as Chairman of the Board and Harri Sundvik as Vice Chairman as of 1.8.2022
Events after the reporting period
- Lasse Holopainen, General Counsel, was appointed as a member of the Management Team as of 1.9.2022
Unless otherwise stated, all figures in brackets in this Half-Year Financial Report refer to the corresponding period in the previous year. The information in the half-year financial report is unaudited. The data for the full year 2021 are based on the audited financial statements for 2021.
Outlook for 2022 (unchanged):
Spinnova’s medium-term business targets set in June 2021 are to achieve a production capacity of 150 thousand tons and a positive operating result, as well as to gain up to 20 brand partners. Spinnova is working towards these goals and will implement its strategy as planned in 2022. Its target market is growing, and the demand for sustainable textile materials is very strong. Spinnova expects to complete the Woodspin plant on schedule and start operations at the end of 2022. Spinnova expects to continue launching commercial product batches together with its brand partners.
During 2022, Spinnova’s net sales are expected to increase compared to 2021, mainly due to increased technology sales of projects delivered to Woodspin and Respin. As Spinnova will focus on investing in its growth and scaling of production in 2022, the company is not expected to make a positive profit.
Key figures
| EUR (thousand) | 1-6/ 2022 | 1-6/ 2021 | 1-12/ 2021 |
| Turnover | 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 |
| Average number of permanent employees | 65 | 43 | 49 |
1) The company’s potential dilutive instruments consist of options. As the company’s business has been unprofitable, the options would not have a dilutive effect on earnings per share calculated on the basis of the loss for the period and therefore have not been taken into account in the calculation of diluted earnings per share. Therefore, there is no difference between basic and diluted earnings per share. The number of shares in the historical figures is adjusted according to the two share splits that occurred first in May 2020, when the number of shares was multiplied by 10, and then in May 2021, when the number of shares was multiplied by 30.
From the CEO
The first six months of 2022 were a time of many exciting changes for Spinnova. I was honored to start as the CEO of Spinnova on 1.8., continuing the excellent work of co-founder Janne Poranen. Our ambitious goal is to scale and commercialize SPINNOVA® fiber technology and production with our dedicated and highly talented team.
The success of our strategy depends on our top-level international team. During the first half of the year, we recruited key personnel to implement our ambitious plan. The safety and well-being of our personnel is our number one priority at Spinnova, and we will continue to develop first-class processes to ensure them.
SPINNOVA® on ilmastopositiivinen tekstiilikuitu
Unique technology is a way for Spinnova to stand out. Carbon handprint calculations carried out at Spinnova’s first commercial factory in 2022 showed that the production value chain is expected to save more carbon dioxide emissions than it produces, making SPINNOVA® a climate-positive textile material. It is a huge advantage in the textile industry, where the transition to sustainable materials is accelerating.
Our brand partners launched the first commercial products
In the first half of 2022, we were excited to announce the first commercial products with our brand partners adidas and ARCET. These products are made from a mixture of SPINNOVA® fibre and cotton, which proves that SPINNOVA® is a first-class sustainable textile material and brand suitable for commercial use. We will continue our product development with many of our brand partners, with the goal of launching more commercial products during the year.
Scaling proceeds according to plan
The monetization and scaling strategy is progressing according to plan. The demand for sustainable fibres continues to grow in the global textile fibre market of nearly EUR 200 billion.
This year, our main focus has been on building the first commercial plant in Woodspin (a joint venture between Spinnova and Suzano in equal shares). Construction and technology deliveries are both on schedule and the plant is expected to be completed by the end of 2022. We want to have the best possible concept in place when Woodspin starts operations.
The Respin pilot plant, owned in equal shares by Spinnova and ECCO, has successfully operated this year and we are about to start planning the commercialization phase according to schedule. Spinnova is the exclusive technology supplier to Woodspin and Respin. The sale of technology to both companies has been carried out according to schedule, which is reflected in the increase in turnover.
The next step in scaling is Woodspin’s second plant, for which Woodspin has started feasibility planning. Spinnova, as an exclusive technology supplier, has started the technical preliminary design of the technology concept of the factory in question. Spinnova’s technology is ready to be scaled and I look forward to taking our growth strategy forward together with the whole team. I would like to thank our international team, partners, customers and investors for their continued support.
