Spinnova Plc’s Financial Statements Bulletin January–December 2021: Scaling accelerates and first technology sales materialise

Company releases 24.02.2022

SPINNOVA PLC COMPANY RELEASE 24 FEBRUARY, 2022 AT 8.45 A.M. EET Spinnova Plc’s Financial Statements Bulletin January–December 2021: Scaling accelerates and first technology sales materialise This release is a summary of Spinnova’s Financial Statements Bulletin for January to December 2021. The complete report is attached to this release and also available on the company’s website at https://spinnovagroup.com/reports/.

January to December 2021 (Audited)

• Revenue grew to EUR 6 063 thousand (EUR 254 thousand).
• Operating loss for the period was EUR 7 172 thousand (EUR 5 473 thousand loss)
• Total investments were EUR 4 366 thousand (EUR 3 673 thousand).
• The number of permanent employees at the end of the period grew to 58 (40).

July to December 2021

• Revenue grew to EUR 5 661 thousand (EUR 168 thousand).
• Operating loss for the period was EUR 4 079 thousand (EUR 3 480 thousand loss)
• Total investments were EUR 1 414 thousand (EUR 1 385 thousand).
• The number of permanent employees at the end of the period grew to 58 (40).

Significant events during H2 / 2021

• 1 July: The over-allotment option of Spinnova’s initial public offering was exercised, bringing the gross proceeds raised to approximately EUR 115 million.
• 13 August: Spinnova’s Sustainability Director Shahriare Mahmood was appointed Chief Sustainability Officer and member of the management team.
• 16 August: Spinnova and The North Face signed a development agreement to develop new, sustainable, high-performance textiles for the outdoor apparel category.
• 12 October: Spinnova and Icebreaker announced they are developing circular SPINNOVA®-merino wool blend products.
• 5 November: Spinnova decided on a new, estimated EUR 2.2 million investment in its R&D capabilities; an industrial scale in-house yarn spinning facility.
• 24 November: Spinnova made its debut in composites in partnership with ski manufacturer PUSU.
• 17 December: Spinnova completed the pilot production line for leather based SPINNOVA® fibre.
   

Key Figures

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 Janne Poranen’s review:

“Spinnova reached many big milestones in 2021 as we delivered against our strategy. In the second half our main scaling priority, building the first commercial scale factory for the Woodspin joint venture, proceeded according to plan. The factory construction in Finland is expected to be ready for technology installations by the end of the summer, and the factory to be completed by the end of the year.

The factory will include Spinnova’s and Suzano’s joint venture Woodspin’s fibre production, Suzano Finland’s micro-fibrillated cellulose refining, as well as Spinnova’s headquarters. What’s worth mentioning here is that this is Suzano’s first ever production investment outside of Brasil. This is a great step in the joint commitment with Suzano to reach one million tonnes of SPINNOVA® fibre annual production capacity within 10-12 years.

We also finished building a pilot production line in Finland in December as planned for Respin, our joint venture with ECCO’s leather partner KT Trading. Respin has now begun working towards commercializing the disruptively circular SPINNOVA® leather waste fibre. Respin will pay a total 2.5 million euros to Spinnova for the pilot production line and R&D services in the course of the proof-of-concept phase that is estimated to take one year.

Extending our technology to this waste-based raw material is a great example of the uniqueness of our innovation and technology. Spinnova is not just an incremental improvement to existing fibres, but a versatile technology platform. We produce the most natural man-made textile fibre out of many feedstocks, without harmful or complex chemical processes, with the touch and feel of natural fibres such as cotton and linen. To support the commercialization of SPINNOVA® fibres, we have decided to make an estimated 2.2-million-euro investment in an in-house yarn spinning facility for research and development purposes. This will streamline Spinnova’s commercial textile development, enhance brand collaborations, and further improve our market entry capabilities.

In September, we were proud to announce that The North Face became our brand partner, joining existing brand partners adidas, the H&M Group, Bergans, Bestseller, ECCO, Icebreaker and Marimekko, all paving the way to a joint commercial future in long-term collaboration. 

To expand outside the apparel and footwear sector, we entered the composites market in November. We introduced alpine skis made with SPINNOVA® fabric in collaboration with a Finnish woodcore ski manufacturer PUSU Skis. This limited but promising commercial edition is another important demonstration of the versatility of our material.

The initial public offering financing raised in the summer plays an important part in securing our growth plan. During 2021, we almost doubled our headcount compared with 2020, as we continue to invest in growth. We have been proud to attract top Finnish and global talent to contribute to our growth story! Our highly skilled, committed world class team performed incredibly well in 2021, achieving all key targets.

In 2022, our main focus is on completing the Woodspin factory on time, piloting with Respin and continuing our brand collaborations to introduce more commercial SPINNOVA® products. We have the building blocks in place to execute our strategy; commercialize the SPINNOVA® fibre and scale our production. Planning for our next scaleup, Woodspin's 50 thousand tonne factory, has already started. I’m looking forward to talking more about that soon!”
 

Significant events after the period

• 13 January, 2022: Spinnova joined the United Nations Global Compact
• 21 January, 2022: Sustainable PUSU X SPINNOVA premium skis received prestigious ISPO Award
• 10 February, 2022: Spinnova and adidas unveiled their first commercial product

Outlook for 2022

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.

The Board of Directors’ proposal for distributing profits
 

In the medium term, Spinnova focuses on growth and production scaling. The company does not expect to distribute a dividend in the short to medium term. The distributable unrestricted equity of Spinnova Plc on 31 December 2021 is EUR 105 262 thousand of which the loss of the period is EUR -15 206 thousand. The Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the financial year January-December 2021, and that the loss of the financial year is recorded in the retained earnings. 

In Jyväskylä, 24 February, 2022

Spinnova Plc
Board of Directors
 

Financial Statements Bulletin Webcast

Spinnova arranges a webcast event in conjunction with the Financial Statements Bulletin on Thursday, 24 February at 11.30 a.m. EET. Spinnova’s CEO and co-founder Janne Poranen and CFO Ben Selby will comment on the company’s July-December events and financial performance of 2021. In addition, there will be a guest appearance by COO Thomas Goegsig from ECCO.

A recording of the event will be available on the investor website within 24 hours.

A registration is required and can be done at:
https://spinnova.videosync.fi/fy2021-tulos

Upcoming financial disclosures

Spinnova’s Annual Report for 2021 will be published on week 14/2022. Spinnova’s Annual General Meeting will be held on 5 May, 2022. A separate invitation to the meeting will follow. Spinnova’s half-year financial report for January-June, 2022 will be published on 8 September, 2022.

More information:

Janne Poranen
Chief Executive Officer
Spinnova Plc
janne.poranen@spinnova.com
+358 400 138 711

Certified advisor:

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 technology for making textile fibre out of wood or waste, such as leather, textile or food waste, without harmful chemicals.

The patented 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 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 Helsinki First North Growth Market.

SPINNOVA® home: www.spinnova.com
Corporate & IR site: www.spinnovagroup.com

Attachments

• Spinnova Financial Statements Bulletin 2021 (pdf)