Renewcell publishes interim report for the first quarter 2021

Q2 2021 in brief

Full financing and necessary permits in place in line with project plan


Financial information

  • Net sales for the period amounted to SEK 228 thousand (868).
  • The loss after financial items amounted to SEK -23,417 thousand (-15,819).
  • Cash flow from operating activities amounted to SEK -10,527 thousand (-15,772).
  • Cash flow from investing activities was SEK -40,663 thousand (-333).
  • Earnings per share, before and after dilution, amounted to SEK -0.8 (-0.8).
  • The net cash position equaled SEK 588,958 thousand (23,779).

Significant events during the interim period

  • On 15 April, the Västernorrland County Administrative Board decided that the environmental permit application for Renewcell’s operations in Sundsvall was completeand could proceed to public consultation. The decision was published on 19 April.
  • In April, the Danish fashion house BESTSELLER launched its first garments made with Circulose® through the Vero Moda and Selected brands.
  • On May 19, the company’s Annual General Meeting was held.
  • In June, the company signed an agreement with the Spanish fashion house INDITEX, one of the world’s largest fashion houses and owner of brands such as Zara, Masso Dutti, Bershka and Pull and Bear, for a pilot project for closed loop textile production.
  • On June 30, the loan agreement of up to SEK 311 million was signed with the EIB.


Financial information

  • Net sales for the period amounted to SEK 829 thousand (893).
  • The loss after financial items amounted to SEK -42,667 thousand (-31,775).
  • Cash flow from operating activities amounted to SEK -33,532 thousand (-25,374).
  • Cash flow from investing activities was SEK -87,780 thousand (-333).
  • Earnings per share, before and after dilution, amounted to SEK -1.4 (-1.6).

Significant events after the interim period

  • On July 2, Renewcell received an approved environmental permit for the planned operations in Ortviken in Sundsvall. The permit is valid with immediate effect.
  • On August 4, the shareholders were called to an Extraordinary General Meeting to be held on September 3, 2021.

CEO’s comments

During the past quarter, two crucial pieces have fallen into place in our work to make the fashion industry circular. By signing our loan agreement with the EIB, we have secured full financing until cash flow positivity in under the company’s current financial plan. During the first week of July, we also received a positive verdict for an environmental permit application with immediate effect from the Västernorrland County Administrative Board, meaning that the establishment in Sundsvall can proceed without delay.

Before choosing a place of establishment, many variables are considered. One of the most important is the conditions for a smooth and fair collaboration with local permitting authorities.

It is not uncommon that surprises and delays in environmental permit processes cause major problems for growing companies. I am therefore very pleased that our careful and determined work in combination with a open and efficient handling at the County Administrative Board in Västernorrland paved the way for process that reached conclusion in less than five weeks from submission of a complete application and less than seven months from initial consultation. Sundsvall is the right place for Renewcell.

In the second quarter, we have increased investments in line with the progress of the establishment in Sundsvall. The dismantling of the paper machine that previously stood in the machine hall has been completed and Renewcell has now formally taken over responsibility for the business area. We have also continued to develop the organization. Among other things, Hugo Petit became a permanent CFO and Kristina Elg Christoffersson was hired in the role of Chief Technology Officer. The Company is now expanding its organisation in connection with the builing of our new plant resulting in an increase of our workforce by 19 employees compared with the previous quarter. With continued strong demand for Circulose®, it is the production rate at our facility in Kristinehamn that determines the sales volume. In the time leading up to the start of the plant in Sundsvall, however, we prioritize process and product optimization over volume in sales.

We have continued to support our partner brands in launches of garments made with Circulose®, both during the period and in preparation for autumn collections. I am particularly pleased that during the period Renewcell signed an agreement on a pilot project with Inditex, a collaboration that provides further proof of the industry’s confidence in our technology and that the transition to circular material flows is a top priority.

Looking outside the company, recent extreme weather has reminded us all of the importance of accelerating societal change to reach the 1.5-degree goal. The EU presented its Fit for 55 plan, which in Sweden has created a debate about the view of the forest as a natural resource. Regardless of which side one takes in the discussion about the future of our forest resources, it is clear to everyone that circular alternatives must be scaled up. Renewcell is well positioned to help the world get there.

Stockholm, August 2021
Patrik Lundström – CEO

Telephone conference in connection with the publication of the interim report

In connection with the publication of the interim report for January – June 2021, Patrik Lundström (CEO) and Hugo Petit (CFO) will hold a conference call on 27 August 2021 at 11:00 CET. The presentation is held in English. To participate, please call +46 8 505 583 68 or visit

The interim report and presentation are available at Renewcell’s website: