Spinnova’s revenue for the first half year declined to 362 thousand euros, while operating result was negative 9906 thousand euros.
As a part of its cost restructuring program, the company made changes to its management team.
Commenting on the restructuring plan to improve profitability, Spinnova CEO Tuomas Oijala said in a statement: As part of the strategy review, we set new strategy targets for the short, medium and long term and streamlined our organisational structure to support effective strategy execution. We aim to be EBIT positive in the medium term and we expect not to need to raise additional external funding to reach our strategy targets.”
“We had to say goodbye to many talented people, but as an organisation we have emerged stronger with clearer roles and responsibilities. The annual run-rate savings from the change negotiations and management team changes are approximately 1.6 million euros and the majority of the run-rate savings will be effective by the beginning of 2025,” added Oijala.
In 2024, the company projects revenues to be lower than in 2023, while the operating result is expected to improve but to continue to be negative.
During the period under review, Spinnova and Suzano signed a letter of intent regarding a potential new production facility for wood-based Spinnova fibre and the company’s R&D yarn spinning line was inaugurated in Tearfil’s mill in Portugal.
