Spinnova Plc’s Financial Statements Bulletin January-December 2024: Technology sales strategy and key partnerships progressed. Revenues and operating results are in line with guidance
SPINNOVA PLC, COMPANY RELEASE, 13 FEBRUARY 2025, 08:30 a.m. UCT+2
Spinnova Plc’s Financial Statements Bulletin January-December 2024: Technology sales strategy and key partnerships progressed. Revenues and operating results are in line with guidance
This release is a summary of Spinnova’s Financial Statements Bulletin January–December 2024. The complete report is attached to this release as a PDF file and is also available on the company website at https://spinnovagroup.com/reports/.
January-December 2024 Highlights
(Comparison figures in parentheses are for the same period in 2023 if nothing else is communicated)
- Revenue was EUR 762 thousand (EUR 10 640 thousand). Revenue decreased significantly as the technology project to Woodspin’s production facility was completed in 2023.
- Operating result for the period was EUR -18 349 thousand (EUR –20 926 thousand).
- Total investments were EUR 5 783 thousand (EUR 8 963 thousand).
- Net cash at the end of 2024 was EUR 40 881 thousand (EUR 54 426 thousand).
- The number of permanent employees at the end of the period was 57 (76).
- Spinnova announced its updated strategy, focusing on technology sales, in March 2024.
- In March 2024, to support the effective execution of the updated strategy and to achieve profitability targets, Spinnova started change negotiations for its personnel and also announced a change to the management team.
- Spinnova Plc and Suzano S.A. signed a non-binding Letter of Intent (LOI) regarding a potential new production facility for wood-based SPINNOVA® fibre. Reaching the targeted process metrics required to move to the next phase were not met during 2024, so the project did not proceed to the pre-engineering phase during 2024, as originally planned.
- Spinnova and Ecco signed a Letter of Intent regarding future plans for their joint venture company Respin.
- Spinnova and Valmet signed a Partnership Agreement regarding the delivery of process equipment for Spinnova’s customers.
- Spinnova’s joint venture Woodspin and PUMA entered a multi-year letter of intent to secure SPINNOVA® fibre volumes.
July- December 2024
- Revenue was EUR 400 thousand (EUR 1 820 thousand).
- Operating result for the period was EUR -8 443 thousand (EUR -9 931 thousand).
- Total investments were EUR 2 431 thousand (EUR 2 916 thousand).
GROUP KEY FIGURES1
| EUR (thousand) | 7-12/2024 | 7-12/2023 | 1-12/2024 | 1-12/2023 |
| Revenue (net sales) | 400 | 1 820 | 762 | 10 640 |
| Operating result (EBIT) | -8 443 | -9 931 | -18 349 | -20 926 |
| Profit for the period | -7 680 | -9 033 | -16 833 | -19 596 |
| Earnings per share (EUR, diluted and undiluted) 1) | -0.15 | -0.17 | -0.32 | -0.38 |
| Net cash | 40 881 | 54 426 | 40 881 | 54 426 |
| Equity ratio, % | 85% | 89% | 85% | 89% |
| Number of permanent employees, end of period | 57 | 76 | 57 | 76 |
| Number of permanent employees, average | 63 | 76 | 68 | 77 |
1) The company’s potential dilutive instruments consist of stock options and other share-based incentives. 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 BOARD OF DIRECTORS’ PROPOSAL FOR THE DISTRIBUTION OF PROFITS
In the medium term, Spinnova focuses on growth and the company does not expect to distribute a dividend in the short to medium term. The distributable unrestricted equity of the Parent company Spinnova Plc on 31 December 2024 was EUR 66 469 thousand, of which the result of the period was EUR -13 984 thousand. The Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the financial year January-December 2024, and that the loss of the financial year is recorded in the retained earnings.
OUTLOOK
Financial Guidance for 2025
At this time, Spinnova is not providing financial guidance for 2025, because the outlook is dependent on the ongoing planning with Suzano on the fastest way to validate end-to-end process efficiency metrics of the Spinnova technology. This validation is needed in order to move to the next phase of the scale-up of wood-based SPINNOVA® fibre production.
Our aim is to update financial guidance for 2025 in the coming months.
CEO TUOMAS OIJALA’S REVIEW ON YEAR 2024
Year 2024 was transformative for Spinnova. At the beginning of the year, we focused intensively on deepening our understanding of the market and our customers and updating our strategy in line with this. We met many key players in the market, and it was clear that the textile industry needs more sustainable materials and alternatives to natural fibres. Our mission is to change the raw material base of the textile industry. We decided that we will do this by helping the industry build production lines that take sustainably produced pulp and turn it into a natural cotton-like fibre. This solves existing fibre supply chain challenges, improves sustainability metrics of final products, and supports circular fibre supply chains.
The Capital Markets Day we held in March was a very important day for us, as we announced our updated strategy and targets. Our renewed strategy is centred on the best path to creating shareholder value by focusing on a capital-light model where we generate income from the value our fibre production technology adds to our customers. These revenues are expected to come from the planning and engineering of facilities, delivery of proprietary equipment, and licenses and service agreements to enable operations. Although our focus is no longer on fibre production and sales, we continue to be active in co-developing our fibre product with brands and textile suppliers, which demonstrates and grows the addressable market for the SPINNOVA® fibre.
An important part of the refreshed strategy is our targets for the short, medium, and long term. We aim to achieve EBIT-positive results by the medium-term (2028-2030), and we expect to reach our set targets without raising additional external funding. During the first half of the year, we completed a difficult, but important, restructuring programme to ensure we can effectively implement our strategy and to ensure our cost base is in line with our strategic targets. I want to thank everyone for their leadership, collaboration, and resilience in making this happen. We now have a stronger and clearer organisation in place.
Throughout 2024, we reached several significant milestones. We signed a Letter of Intent in March with our long-term partner, Suzano. This agreement outlines Suzano’s plans to invest in Spinnova’s technology. Technology development of fibre spinning has progressed well in terms of increasing the output of the fibre drying units, and the main sub-processes have already been validated separately. However, validating process efficiency metrics at targeted capital and operating expenditure levels at the Woodspin factory for the entire process from pulp to fibre was not met during 2024, and therefore, the pre-engineering phase was delayed from the planned timetable at the end of 2024. Alternative plans are being pursued together with Suzano for the fastest way to validate end-to-end process efficiency metrics in order to move to the next phase of the project. Suzano is responsible for the MFC development, and Spinnova is responsible for the fibre-spinning development. It is important to note that based on brand and supply chain feedback, we have demonstrated that we can make good fibre, and our focus is now on ensuring efficiency and cost-competitiveness of future factories.
We formed a partnership with global technology supplier Valmet, which will supply the main equipment for future factories. This collaboration with Valmet accelerates our development, pairs us with an established industrial partner experienced in delivering similar projects and expands our technology sales to a pool of new customers. Another key achievement was the Letter of intent signed in July with Ecco, our joint venture partner, which further solidifies our commitment to scaling leather-based fibre production at Respin. Both parties aim to decide on scaling and commercialisation by the end of Q1 2025.
We continue to ensure our fibre product is visible in the end consumer market, and a very exciting development this year was the commercial launch of high-volume products featuring SPINNOVA® fibre. Bestseller, for example, launched t-shirts under their JACK & JONES brand in April, marking the first commercial product made with SPINNOVA® fibre produced at the Woodspin joint venture factory. In addition, JACK & JONES, Vero Moda, and Rukka produced Summer Olympics 2024 collections for Danish and Finnish athletes, including SPINNOVA® fibre.
Our collaborations extend beyond product launches to commitments to future fibre production volumes. We announced a collaboration with PUMA to develop products from SPINNOVA® fibre for future collections, particularly in products of PUMA’s Sportstyle category. The letter of intent was signed by Spinnova’s joint venture, Woodspin, to secure PUMA’s access to sustainable fibre volumes for several years. We also teamed up with ASK Scandinavia, a premium brand based in Helsinki, to create a limited-edition work tote bag inspired by Nordic design. Through these partnerships, we continue to make strides in raising consumers as well as brands awareness about sustainable fashion.
In recognition of our groundbreaking innovation, Business Finland granted Spinnova an R&D loan of up to EUR 12.7 million to support our ongoing research and development initiatives.
Financially, 2024 turned out as expected and in line with our financial guidance. Our revenues totalled EUR 0.76 million, and our operating result was EUR –18.3 million. We continued to invest in R&D, our own pilot, as well as in our joint ventures, Woodspin and Respin. Our net cash position remained strong, totalling EUR 40.9 million by year-end. Our ongoing cost savings programme, including personnel and external spending adjustments, has progressed according to plan, and the majority of the expected EUR 1.6 million annual run-rate savings have already been achieved.
I want to thank all our stakeholders for their support and trust. 2024 has been a year of hard work and many changes, but we are ready for the future and remain strongly committed to our strategic goals announced at our Capital markets day 20024. As we progress, we look forward to achieving even more significant milestones together.
Tuomas Oijala
CEO
Spinnova Financial Statements Bulletin 2024 -webcast
Spinnova arranges a webcast event on Thursday 13 February 2025, at 10.00 a.m. EET, during which Spinnova’s CEO Tuomas Oijala and CFO Ben Selby will discuss the company’s January-December 2024 events and financial performance.
The event is in English. Register and log in to the webcast via the web address below. Once the event starts, the event page will switch to the presentation mode automatically.
https://spinnova.videosync.fi/H2&FY2024/
The recording of the webcast will be available at https://spinnovagroup.com/reports/ within 24 hours.
Upcoming financial disclosures
- Annual Report (including Sustainability) week 11
- Spinnova’s Annual General Meeting will be held on Wednesday, 9 April 2025. The Board of Directors will convene the meeting separately
- Half-year financial report for 1 January – 30 June 2025 on Thursday 28 August 2025
Spinnova Plc
For further information, please contact:
Tuomas Oijala, CEO
Ben Selby, CFO and Deputy CEO
Sophie Jolly, Interim Head of Investor Relations and Communication
Tel. +358 20 703 2430
ir@spinnova.fi
Certified advisor:
Aktia Alexander Corporate Finance Oy
Tel. +358 50 520 4098
Distribution:
Nasdaq Helsinki
Major media
Spinnova – The textile material innovation
Spinnova technology transforms the way textiles are manufactured globally. Based in Finland, Spinnova has developed breakthrough patented technology for making textile fibre out of wood pulp or waste, such as leather, textile or agricultural cropping waste, without harmful dissolving chemicals.
Spinnova technology creates no side streams in the fibre production process, and SPINNOVA® fibre has minimal CO2 emissions and water use, as well as being biodegradable and recyclable. Spinnova technology uses a mechanical process, giving the fibre the look and feel of a natural cellulosic fibre such as cotton.
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