Swedish firm Renewcell's net sales at SEK 84.8 mn in Q2 FY23

29 Aug '23

2 min read

Pic: Renewcell

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Renewcell has posted a surge in net sales to SEK 84.8 million in Q2 FY23, up from SEK 29.7 million in Q1 FY23.
However, it still reported a net loss of SEK 105.4 million, albeit improved from SEK 125.4 million in the previous quarter.
EBITDA also improved but remained negative at minus SEK 59.3 million.
Earnings per share improved slightly to minus SEK 2.8.

Swedish textile recycling company Renewcell has reported net sales of SEK 84.8 million (approximately $7.73 million) in the second quarter of fiscal 2023 (Q2 FY23), compared to SEK 29.7 million in Q1 FY23. However, the operating profit before depreciation and amortisation (EBITDA) remained negative at minus SEK 59.3 million, albeit an improvement from minus SEK 80.3 million in the prior quarter. The net loss for Q2 stood at SEK 105.4 million, down from SEK 125.4 million in Q1.

Earnings per share for Q2 improved slightly, with both before and after dilution coming to minus SEK 2.8 compared to minus SEK 3.3 in Q1, Renewcell said in a press release.

The company's net debt at the end of the period reduced to SEK 833.6 million from SEK 1,006.5 million, and leasing debt was recorded at SEK 316.7 million.

During the quarter, Renewcell continued its ramp-up towards a production capacity of 60,000 tonnes per year.

For the period of January to June 2023 (H1 FY23), net sales amounted to SEK 114.5 million. The EBITDA for the period was SEK 139.6 million. Net loss for H1 FY23 came in at SEK 230.8 million. Cash flow from operating activities amounted to minus SEK 136.3 million, and cash flow from investing activities was minus SEK 69.7 million. Earnings per share for the first half, both before and after dilution, stood at minus SEK 6.2.

"The recovery is slower than expected in many sectors, including the textile and fashion industry, and the after-effects of the different crises in recent years are still present. But there are also clear signs of improvement, for energy, transport, and raw material costs. Despite this backdrop we see the interest in sustainable fashion continuing to grow and more and more brands setting clear targets for their businesses,” said Patrik Lundstrom, CEO.

Fibre2Fashion News Desk (DP)

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