Renewcell publishes interim report for the first quarter 2021
Q1 2021 in brief
Figures in parentheses refer to the year-earlier period.
New partnerships ensure a start in Sundsvall in line with project plan
January – March
- Net sales for the period amounted to SEK 601 thousand (24).
- The loss after financial items amounted to SEK 19,250 thousand (-15,956).
- Cash flow from operating activities following changes in working capital amounted to SEK -18,311 thousand (-9,510).
- Earnings per share, before and after dilution, amounted to SEK -0.6 (-0.8).
- On January 28, Renewcell signed a contract with Valmet for the supply and installation of production equipment at the company’s plant in Sundsvall. The value of the contract amounts to SEK 232 million.
- On March 5, Renewcell commenced recruitment for a new CFO to succeed Maria Vallejo.
- In the beginning of March, Renewcell was included as an Honoree in Fast Company’s 2021 World’s Most Innovative Companies list.
- On March 25, Hugo Petit assumed the role of Interim CFO at the company.
Significant events after the end of the interim period
- On April 15, the Västernorrland County Administrative Board decided that Renewcell’s application for an environmental permit for its operations in Sundsvall will be posted for public consultation. The posting was made on April 19, 2021.
- On May 4, Renewcell hired Kristina Elg Christoffersson as Chief Technology Officer. She will assume her position at the company in August 2021.
- Danish fashion house BESTSELLER launched its first garment made of Circulose® through the brands Vero Moda and Selected.
Following on the preparations for our listing on First North that dominated the end of 2020, the company has now fully shifted its focus toward execution. For us, 2021 will entail a determined effort to deliver according to the plan we went to the market with. In Kristinehamn, we are prioritizing the validation of raw materials, process parameters and product specifications ahead of the start-up in Ortviken. At the same time, we are building a team to be able to support rapid upscaling. I am pleased to note that we are on track.
The first quarter has in many ways been signified by partnerships. We have worked intensely to secure the necessary network of suppliers and consultants needed to deliver the Sundsvall project on time and within budget.
At the time of writing, around one hundred people are working at Renewcell and at our partners and suppliers with the Sundsvall project. Being part of driving the transition of the fashion industry inspires a sense of pride among not just our employees but also our partners. The level of enthusiasm and commitment for the project that I have seen from our partners is inspiring. With companies such as AFRY, Citec, Valmet, Xylem, SCA, Nordea and SEK involved in the project, we have all the necessary prerequisites for success.
There is also tangible enthusiasm for our scaling to be found among policymakers at the local, regional and national level. In March, our Site Manager at Ortviken, Henrik Dahlbom and myself had the honor of presenting Renewcell’s investment plans to Prime Minister Stefan Löfven during a virtual tour of the new site. The plant we are building at Ortviken in Sundsvall is fully aligned with the government’s priorities to transition Swedish industry and engage in a green restart following the coronavirus pandemic.
With a vaccination campaign that is beginning to gain momentum, the world is starting to sense an end to the pandemic. Rising demand for dissolving pulp is noticeable in our niche as is accelerated activity in a fashion industry,which has experienced a difficult 2020. The restart has a clear theme; brand after brand across the globe is now making the transition to sustainability and circularity their highest priorities. We are making this transition possible with our new plant in Ortviken.
Stockholm, May 2021
Patrik Lundström — CEO