On January 29th, Eevia Health Plc (publ) (“Eevia”) announced ten new sales orders for products totaling EUR 66k from various European and US customers, one of which is a new customer.
Analyst Group’s View of the New Orders and Customer
The repeat orders from ten customers, including a new Latvian client, reflect strong demand for Eevia’s high-quality, organically certified plant extracts, supplied B2B to global dietary supplement and food brands. These orders are particularly encouraging as Eevia progresses with the divestment of its berry-based extract manufacturing assets to Baccas Salus Oy for EUR 2.5–3.0m, reinforcing demand for premium plant extracts.
A key highlight is that, except for the tart cherry extract, Feno-Ceraus 5, all products are currently in stock, positively impacting working capital and cash flow. Given Eevia’s recent liquidity challenges, the reduction in inventory is expected to strengthen the company’s financial position.
Additionally, Eevia’s ability to attract new customers is noteworthy, particularly as the company currently lacks the resources to invest in dedicated sales and marketing staff. This suggests that new customer acquisition may be driven organically through distributors efforts and word-of-mouth, further reinforcing the strong reputation of Eevia’s high-quality plant extracts.
The Sales Orders
During the past week, Eevia secured sales orders totaling EUR 66k, equivalent to SEK 763k, from ten customers, including one new client. Notable orders included EUR 11k from a French partner and EUR 8k from a European customer for the bilberry extract Feno-Myrtillus 25. The European customer, utilizing bilberry extracts in animal feed applications, represents a promising high-volume opportunity. Additionally, a Finnish customer placed an order worth EUR 10k for bilberry products, while Select Ingredients submitted an order for a bilberry product intended for a U.S.-based organic brand.
Moreover, a Finnish customer ordered EUR 7k of Fenoprolic 70 Organic, while a German customer placed a EUR 10k order for the same product via distributor Breko. Additional orders included Feno-Chaga Organic in the U.S. through NutriOriginal, a small initial U.S. order for Feno-Ceraus 5 Organic (tart cherry extract), and a EUR 3k bilberry extract order from a new Latvian customer.
The majority of these orders were placed via distributors, supporting end-customers in developing high-quality natural brands. With the exception of Feno-Ceraus 5, all products are currently in stock, enabling immediate fulfillment without requiring additional raw material purchases, thereby positively impacting cash flow. Eevia also holds sufficient raw material for Feno-Ceraus 5, allowing for swift production. As these are primarily repeat orders, Eevia anticipates additional future orders from these customers.
In summary, we view the new sales orders as a positive step forward. With the planned divestment of berry extract manufacturing assets, these orders further validate the strong demand for Eevia’s high-quality plant extracts, highlighting the potential to unlock significant underlying value upon successful completion of the divestment.
How Analyst Group views Eevia Health as an investment
In Q4-24, Eevia launched a transformational restructuring plan to become a specialized provider of high-margin, science-backed health solutions, focusing on gut, kidney, and urinary health. By divesting assets related to Retinari™ and berry extract manufacturing, Eevia aims to streamline operations, enhance profitability, and adopt a capital-light business model, leveraging the Company’s expertise in bioactive compounds. This turnaround plan allows investors to retain exposure to former operations without the financial risks of plant extract production. With a clear strategy set by the new and experienced board, Eevia is well-positioned to capitalize on the expanding gut health market and recover to profitable growth, thereby unlocking the underlying value within the Company. Overall, Analyst Group believes the ongoing rights issue presents an attractive entry point for investors at a Pre-Money valuation of SEK 6.0m.
