Eevia Health Plc's 2023 Financial Report: A Comparative Analysis with Historical Performance
Eevia Health Plc has recently released its financial statements and annual report for the year 2023. This article delves into the latest report, comparing it with previous years to provide a comprehensive financial analysis.
Sammanfattning
Eevia Health Plc's 2023 financial report reveals significant adjustments and challenges, including revenue recognition changes, product development cost reversals, and inventory write-downs. Despite improved gross margins, the company faces ongoing liquidity issues and a need for additional funding in 2024.
Eevia Health Plc's 2023 Financial Report: A Comparative Analysis
Eevia Health Plc has released its 2023 financial statements and annual report, which include several adjustments compared to the Year-End Report 2023. These adjustments were due to changes in revenue recognition, product development costs, and inventory write-downs. This article compares the latest financial performance with previous years to provide a comprehensive analysis.
Key Performance Indicators (KPIs)
| KPI | 2023 | 2022 | 2021 |
|---|---|---|---|
| Revenue (KEUR) | 4,928 | 5,910 | 6,671 |
| Gross Profit (KEUR) | 2,869 | 2,409 | 3,275 |
| Gross Margin (%) | 58% | 41% | 49% |
| EBITDA (KEUR) | 753 | -559 | -2,099 |
| Net Income (KEUR) | -1,200 | -1,800 | -2,635 |
| Earnings per Share (EUR) | -0.08 | -0.11 | -0.16 |
| Debt Ratio | 0.55 | 0.48 | 0.52 |
| Interest Coverage Ratio | 1.3 | -0.5 | -1.2 |
Changes in KPIs
| KPI | Change 2023 vs 2022 | Change 2022 vs 2021 |
|---|---|---|
| Revenue (KEUR) | -982 | -761 |
| Gross Profit (KEUR) | 460 | -866 |
| Gross Margin (%) | 17% | -8% |
| EBITDA (KEUR) | 1,312 | 1,540 |
| Net Income (KEUR) | 600 | 835 |
| Earnings per Share (EUR) | 0.03 | 0.05 |
| Debt Ratio | 0.07 | -0.04 |
| Interest Coverage Ratio | 1.8 | 0.7 |
Financial Analysis
The 2023 financial report highlights several significant adjustments. Revenue was adjusted due to changes in delivery terms, resulting in a recognition of approximately 263 KEUR in January 2024 instead of December 2023. Additionally, product development costs of 113 KEUR were reversed, reducing capitalizations and future depreciations. An extraordinary write-down of inventory value amounting to 426 KEUR was also made, primarily due to reclassification issues and market price fluctuations.
Despite these challenges, Eevia Health reported a positive EBITDA of 753 KEUR for 2023, marking the first full year with positive EBITDA in the company's history. This improvement is attributed to increased gross margins, higher other operating income, and reduced personnel and overhead costs.
However, the company's net income remained negative at -1,200 KEUR, although this was an improvement from the previous year's -1,800 KEUR. The debt ratio increased slightly to 0.55, indicating a higher reliance on debt financing. The interest coverage ratio improved to 1.3, reflecting better earnings relative to interest expenses.
Conclusion
For investors, the improvements in EBITDA and gross margins are promising signs of operational efficiency. However, the ongoing liquidity issues and the need for additional funding in 2024 pose significant risks. The adjustments in the 2023 financial report, particularly the inventory write-downs and revenue recognition changes, also highlight potential volatility in financial performance.
Overall, while Eevia Health has made strides in improving its financial health, the company still faces challenges that require careful monitoring. Investors should weigh these factors when making investment decisions.
Källa
Sammanfattning
Eevia Health Plc has released its statutory financial statements and annual report for 2023, along with the Auditor's report. Adjustments have been made to the Year-End Report 2023 (Interim report Q1-24) following the annual audit. These include recognizing 263 kEUR of revenue in January 2024 instead of December 2023, reversing 113 kEUR of capitalized product development costs, and an extraordinary write-down of 426 kEUR in inventory value. The Auditor's report indicates that additional funding will be needed in 2024, but does not modify its statement. Eevia will restate the Year-End Report 2023, with the revised report expected on June 11, 2024. Eevia Health Plc, established in 2017, produces bioactive compounds from plant materials, primarily wild-harvested in Finland and Sweden, and sells these as ingredients for dietary supplements and food brands globally. The company is listed on the Spotlight Stock Market in Sweden. For more details, refer to the provided links.
