From
January – March, group
(IFRS)
- Net sales during the period amounted to
SEK 29.7m - Operating profit before depreciation and amortization (EBITDA) during the period amounted to
SEK -80.3m - Net profit/loss for the period was
SEK -125.4m - Cash flow from operating activities amounted to
SEK -101.6m - Cash flow from investing activities amounted to
SEK -55.9m - Earnings per share, both before and after dilution, amounted to
-3.3 SEK per share - The company’s net debt at the end of the period was
SEK 1,006.5m of which leasing debt wasSEK 319.7m
January – March, parent company
(RFR2, compared to the same period last year)
- Net sales during the period amounted to
SEK 29.7m (2.0) - Operating profit before depreciation and amortization (EBITDA) during the period amounted to
SEK -86.0m (-46.3) - Net profit/loss for the period was
SEK -123.9m (-54.0) - Cash flow from operating activities amounted to
SEK -104.5m (-101.5) - Cash flow from investing activities amounted to
SEK -55.9m (-183.4) - Earnings per share, both before and after dilution, amounted to
-3.3 SEK per share (-1.8) - The company’s net debt at the end of the period was
SEK 686.9m (22.6)
Change in accounting principles
Re:NewCell AB reports fromJanuary 1 2023 as a group according to IFRS accounting principles. The parent company continues to report according to RFR2, in accordance with Swedish law, and the parent company’s figures are therefore reported separately above in order to allow comparison between periods. See note 2 for further details.
Events during the quarter
- The ramp up has continued during the quarter and the production of prime quality pulp has increased successively from approximately 500 tonnes in January, to approximately 650 tonnes in February and approximately 1,150 tonnes in March. Total production during the quarter amount to about 3,350 tonnes of which approximately 2,400 tonnes were prime quality. 2,061 tonnes were delivered to customers.
- On
March 22 a fire occurred at Renewcell’s textile recycling plant Renewcell 1 in Sundsvall. The fire occurred in a shredding unit and a filter unit in the shredding area at Renewcell 1. After a clean-up and repairs production was restarted onMarch 31 . - On
March 28 a Letter of Intent was signed withChina Textile Academy Green Fiber Co. Ltd. , an innovative Chinese lyocell fiber producer, concerning a long term commercial collaboration around man-made cellulosic fiber production. The agreement affirms the two companies’ intent to work together to supply lyocell textile fibers made using Circulose®, the 100% recycled textile pulp made by Renewcell, to global fashion brands in the coming years. - On
March 30 Renewcell and the leading Chinese viscose manufacturerTangshan Sanyou announced the next step in their partnership to make fashion circular that stretches back to 2018. The two companies’ new shared ambition is to offer manufacturers and brands Circulose® viscose fibers made from 100% recycled textiles in commercial quantities starting in 2024.
Events after the quarter
- During the month of April 1,600 metric tons of prime quality pulp were produced in Ortviken. Total production was 1,700 metric tons and 1,350 metric tons were delivered to customers.
- On
April 28 Renewcell’s lenders agreed to extend the company’s existing credit facility with an additional amount of up toSEK 75m to support the company during the ramp-up of Renewcell 1 in Ortviken.
CEO’s comments
Promoting the circular economy is an important challenge in all sectors and for many governments.
The ramp up of Renewcell 1 in Ortviken is continuing and we are successively increasing production in a controlled way every month. Using the experience we have built up in our Kristinehamn plant we can solve many issues quickly. We work systematically to steadily increase production every day. During Q1 we have been at an average capacity utilization of 22%. We are now aiming to increase production towards full capacity utilization at the end of the year. I do however have full respect for the complexity of a ramp-up such as ours, but we are well on the way.
The fire which occurred on
We have met with a number of customers during the quarter and I have personally been in
So far during 2023 we have launched with PVH feat.
During the quarter we have discussed with our lenders and during April we took up an increased credit facility of 75 MSEK as a complement to support the company during the ramp-up of Renewcell 1.
In summary I can state that the customer interest is still strong and our production and sales teams work systematically and are taking significant steps in the right direction. I believe that we are well positioned to be fully ramped up to the annual capacity level of 60,000 tonnes at the end of 2023 and can thereafter scale up further to 120,000 tonnes during 2024.
Patrik Lundström, CEO.
Invitation to presentation of Renewcell’s Q1 report
The presentation will be webcasted live by
The live webcast can be accessed at this link: https://youtube.com/live/dnTzieg33yk
The recorded webcast, report and presentation materials will be published on Renewcell’s website www.renewcell.com after the broadcast.
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