SPINNOVA PLC, COMPANY RELEASE, 28 AUGUST 2025, 08:30 A.M. UCT+2
Release category: Half-Year Financial Report
Spinnova Plc's Half-Year Report January-June 2025: Focus on reviewing strategy and product development - the result was burdened by an impairment loss
This release is a summary of Spinnova's Half-Year Report for January-June 2025. The complete report (PDF) is attached to this release and available on the company's website at https://spinnovagroup.com/reports/.
Spinnova Plc's Half-Year Report January-June 2025 (unaudited)
In January-June 2025, Spinnova focused on reviewing its strategy and product development. The result was burdened by an impairment loss on Spinnova's share of the joint venture Woodspin.
JANUARY-JUNE 2025
(Comparison figures in parentheses are for the same period in 2024 if nothing else is communicated)
Financial
- Revenue was EUR 100 thousand (EUR 362 thousand).
- Operating result for the period was EUR -26 873 thousand (EUR -9 906 thousand). The result was negatively affected by an impairment loss totalling EUR -18 433 thousand on Spinnova's share of the joint venture Woodspin.
- Total investments were EUR 972 thousand (EUR 3 353 thousand).
- Net cash at the end of the period was EUR 33 269 thousand (EUR 46 601 thousand).
- The number of permanent employees at the end of the period was 51 (74).
Operational & strategic
- A strategic review of the joint venture Woodspin was initiated in February 2025. The outcome, a non-binding term sheet was announced in June, and the final agreement was signed in August.
- Spinnova announced its own updated strategy on 10 June 2025.
Management & personnel
- Spinnova's CEO, Tuomas Oijala, informed on 12 March that he will leave the Company.
- Spinnova's Board of Directors appointed Janne Poranen as CEO effective 20 March 2025. He also continued as Chair of the Board.
- During the period, Spinnova made changes in its Management Team to align roles better according to the current development stage.
- Spinnova adjusted its organisational structure to the company's current development stage and the changed operating environment, targeting an annual savings of EUR 1.6 million.
SIGNIFICANT EVENTS AFTER THE PERIOD
The strategic review of Spinnova's joint venture was finalised
As a result of Suzano's withdrawal from investments into the next steps of the collaboration with Spinnova, a strategic review of Spinnova's and Suzano's joint venture Woodspin was started in the spring of 2025. Following the strategic review, Spinnova Oyj and Suzano S.A. signed a non-binding term sheet in June and the final agreement on 27 August 2025.
Spinnova Oyj buys all Woodspin Oy and Suzano Finland Oy shares from Suzano S.A. for a total of EUR 2 (two euros). This grants Spinnova full ownership of the producer and distributor Woodspin, as well as the provider of raw material, Suzano Finland Oy, for manufacturing wood-based SPINNOVA® fibre. Suzano will also make a capital contribution of EUR 5 million in total to Woodspin and Suzano Finland.
Spinnova's and Suzano's joint venture agreement will be terminated, enabling Spinnova to license its technology freely. Operations at Woodspin have ceased until further notice while alternatives for continued operations are being looked for.
According to the agreement, Spinnova gets full ownership of the only large demo facility, with the needed infrastructure and utilities in place to produce SPINNOVA® fibre from pulp to bale.
In the short term, the transactions will not have a negative cash flow impact on Spinnova; however, they will have a negative net effect on Spinnova's results in 2025.
GROUP KEY FIGURES1
EUR (thousand) | 1-6/2025 | 1-6/2024 | 1-12/2024 |
Revenue (net sales) | 100 | 362 | 762 |
Impairment loss of joint ventures | -18 433 | - | - |
Operating result (EBIT) | -26 873 | -9 906 | -18 349 |
Profit for the period | -26 291 | -9 153 | -16 833 |
Earnings per share (EUR, diluted and undiluted)1 | -0.50 | -0.18 | -0.32 |
Net cash | 33 269 | 46 601 | 40 881 |
Equity ratio, % | 79% | 88% | 85% |
Number of permanent employees, end of period | 51 | 74 | 57 |
Number of permanent employees, average | 54 | 74 | 68 |
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 considered in measuring the dilutive loss per share. Thus, there is no difference between the undiluted and diluted loss per share.
This January-June half-year report was prepared according to the requirements in IAS 34 (Interim Financial Reporting) standard. The information for the entire financial year 2024 is based on the published audited IFRS financial statements for 2024.
OUTLOOK
Financial Guidance for 2025 and 2026
Spinnova will not give financial guidance for the years 2025 and 2026.
CEO JANNE PORANEN'S COMMENTS ON THE PERIOD UNDER REVIEW
The year 2025 started well and operationally according to our plans, until Suzano announced its decision in February. According to the decision, they would not continue with already planned development investments. This changed our daily operations and has influenced our recent choices.
The first half of the year was busy for Spinnova. We completed both Woodspin joint venture's as well as Spinnova's own strategy work, continued discussions with Suzano, and adjusted the organisation. At the same time, we continued our good cooperation with our brand partners, and we received positive feedback on the functionality of our fibre. We have developed our own MFC concept (microfibrillated cellulose), of which the implementation is near completion. The importance of this is emphasised in our new situation.
In our development work, we will now especially focus on reducing production and investment costs, as the fibre production costs are still too high. Positive is the confirmation received from the textile operators that Spinnova's fibre properties are already sufficient for selected commercial applications and that our brand partners want to use the fibre in their products, as already mentioned.
It is important that we can accelerate the scaling of the Spinnova concept, and we are currently actively looking for partners for this collaboration, with the goal of building an international business consortium. Our consortium project has attracted widespread interest in our discussions with both domestic and international companies, and we continue these discussions with confidence.
Considering the company's current development stage and changes in the operating environment, we had to adapt our organisation so that it better suits our current situation.
In August, we entered into a final agreement about the joint venture Woodspin with Suzano. Spinnova will fully own Woodspin, as well as the raw material provider for wood-based SPINNOVA® fibre, Suzano Finland, for a consideration of two euros. In addition, the joint venture agreement and all related exclusivity rights are to be terminated, which enables us to sell and license technology to, including wood-based raw materials, to the parties we want.
Suzano will also make a capital contribution of EUR 5 million, in total, to Woodspin and Suzano Finland. This is important, as it means that in the short term, the planned transactions will not have a negative cashflow impact on Spinnova, and it allows us to look for alternatives to continue our work. The operations at Woodspin and Suzano Finland have been stopped until further notice.
In summary, it can be said that the first half of the year was tough, operationally and mentally, with big decisions made. However, the outcomes of these decisions give confidence that we are on the right track, with a realistic plan. Our strategy for 2025 and 2026 focuses on, among other things, improving the cost-efficiency of the production process, building and implementing an international consortium of companies, and advancing the commercialisation goals of the leather waste-based fibre of the Respin joint venture owned with ECCO. We will work persistently towards our strategic goals.
I want to thank Suzano for their willingness to find a workable solution to end our cooperation, our stakeholders, especially brands, for their support and confidence, and mostly our employees at Spinnova for their good spirit and understanding during this tough period. Now we look confidently to the future, and we will continue to work to achieve our goals.
Janne Poranen
CEO
Spinnova Plc
For further information, please contact:
Janne Poranen, CEO
Sophie Jolly, Interim Head of Investor Relations and Communications
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
H1 2025 Webcast
A webcast event in Finnish will be held on Thursday, 28 August 2025, at 10.00 a.m. UCT+2, where Spinnova's CEO Janne Poranen will comment on the company's January-June 2025 events and financial performance. After the webcast, an interactive PDF will be available on the company's Reports page (http://www.spinnovagroup.com/reports/), where questions can be submitted until 4.00 p.m. local time on the same day.
A recording of the event will be available on the investor website within 24 hours.
The webcast can be watched through the link: https://spinnova.events.inderes.com/q2-2025
Upcoming financial disclosures
- 12 February 2026, Financial statements bulletin for 1 January - 31 December 2025
- 25 August 2026, Half-year financial report for 1 January - 30 June 2026
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
