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STOCKHOLM, SWEDEN / ACCESSWIRE / May 4, 2022 / Re:NewCell AB (publ) (FRA:6QP)(STO:RENEW)
Strong customer interest - Letters of intent and customer agreements amount to 143% of the 60,000 metric tons planned to be established in Renewcell 1.
January - March
Financial information
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Net sales during the period amounted to SEK 2,033 (601) thousand.
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Operating profit before depreciation and amortization (EBITDA) during the period amounted to SEK -46,301 (-17,827) thousand.
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Profit after tax amounted to SEK -54,014 (-19,250) thousand.
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Cash flow from operating activities SEK -101,504 (-23,147) thousand.
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Cash flow from investing activities SEK -183,488 (-46,974) thousand.
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Earnings per share, before and after dilution, amounted to SEK -1.8 (-0.8).
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Net debt* at the end of the period amounted to SEK 22,632 (-641,607) thousand. The company's cash totaled SEK 415,712 (648,274) thousand.
Significant events during the interim period
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Based on increased customer interest, the Board decided the 16th February to initiate an expansion of Renewcell 1 production capacity from 60,000 to 120,000 metric tons about two years ahead of original plan. The company has also initiated an evaluation of the possibility of further raising its operational objectives. The company has hired BNP Paribas and Carnegie to investigate the possibility of financing an increase of the operational objectives.
Other events
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In January 2022, Levi's released its new version of the classic 501 with the name "Levi's 501® Original Designed for Circularity".
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In collaboration with the leading Chinese manufacturer of viscose filament yarns Yibin Hiest Fiber, Renewcell has successfully used 100 percent Circulose® pulp for the production of viscose filament yarns on an industrial scale, which opens up additional product segments for 100 percent Circulose® fibers among sportswear, as a replacement for polyester filaments and among luxury goods as a substitute for silk.
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In March 2022, Renewcell signed a Letter of Intent with Birla Cellulose, the pulp and fibre business of Grasim Industries Ltd., a flagship company of the Aditya Birla Group and one of the world's largest man-made cellulosic fibre producers, concerning a long-term commercial collaboration for man-made cellulosic fiber production. The agreement affirms the two companies' intent to work together to supply high quality Liva Reviva textile fibers made using Circulose®, Renewcell's 100% recycled textile raw material, to global fashion brands and textile industry in the coming years. The shared ambition is to use 30,000 metric tons of Circulose® per year.
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The company has also in March 2022 signed a Letter of Intent with Daiwabo Rayon Co. Ltd., a leading Japanese cellulosic 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 textile fibers made using Circulose®, Renewcell's 100% recycled textile raw material, to global fashion brands in the coming years.