Eevia Health (EEVIA) Q4 2024 earnings summary

Executive summary

• 2024 was a challenging year due to industry-wide supply chain resets, inflation, and high interest rates, leading to a 63% drop in sales revenue to MEUR 1.8 from MEUR 4.8 in 2023, mainly from a halt in orders by the largest customer.

• Efforts to regain revenue through a "switch strategy" targeting large brands were unsuccessful, and new customer acquisition did not offset lost sales.

• A comprehensive turnaround plan was launched in Q4, shifting focus to high-value, proprietary health solutions, especially in gut, kidney, and urinary tract health.

• The company divested non-core assets and implemented cost-cutting measures, with a new business plan and board members to drive recovery.

Financial highlights

• Net sales for 2024 were KEUR 1,788, down 63% from KEUR 4,928 in 2023; Q4-24 net sales were KEUR 263, down from KEUR 317 in Q4-23.

• Gross profit for 2024 was KEUR 935, down from KEUR 2,870; gross margin for the year was 52%, but only 37% in Q4-24 due to inventory sell-off at lower prices.

• EBITDA for 2024 was KEUR -345 (including a non-recurring gain of KEUR 677 from asset sales); adjusted EBITDA was KEUR -1,022.

• Net result for 2024 was KEUR -1,995, deteriorating from KEUR -886 in 2023; Q4-24 net result was KEUR -119 (adjusted: KEUR -795).

• Operating cash flow for 2024 was KEUR -1,512, down from KEUR 1,252 in 2023.

Outlook and guidance

• The turnaround plan focuses on launching proprietary, scientifically substantiated products, with MaxBIOMETM planned for Q4-25.

• Cost reductions, divestments, and a new commercial strategy aim to restore profitability and revenue growth.

• A new rights issue and further restructuring are underway to secure funding and support the turnaround.