Evolva Holding S.A.

Evolva reported total revenue of CHF4.5 million and product-related revenue of CHF4.3 million in H1 2023. Management said core product revenue grew 11% excluding Vanillin and EverSweet, while gross contribution margin rose to 30.4% from 10.9% a year ago. Adjusted EBITDA improved by CHF1.2 million to minus CHF6.3 million. Cash was CHF4.4 million at June 30, with CHF5.2 million of available financing lines; additional financing lines of CHF6.75 million are contingent on trading volumes and market-cap levels. For 2023, revenue is expected in the range of lower double-digit millions of Swiss francs, with further improvement in EBITDA and cash flow; midterm, management reiterated an ambition for EBITDA and cash breakeven in 2025, assuming going concern can be secured, and said revenues are expected to be slightly lower, around up to CHF45 million, at a higher profitability level than in the midterm plan.

Christian Wichert framed the quarter as one of operational progress under difficult conditions, highlighting profitable growth in Valencene, Nootkatone and Resveratrol, plus a higher gross contribution margin and a growing sales pipeline. He repeatedly stressed that the Nice & Green financing issue forced strict cash management and pushed several business activities into 2024. His tone was guarded but still constructive, emphasizing customer support, expected acceleration in H2, and confidence that the strategic review would find a solution by year-end.

Carsten Daweritz focused on the financial improvement in margins and cash discipline. He cited CHF4.5 million of revenue, CHF4.3 million of product revenue, a 30.4% gross contribution margin, and adjusted EBITDA of minus CHF6.3 million, while noting recurring operating expenses fell by CHF2.1 million. He also said total assets fell to CHF53 million from CHF131 million because of an extraordinary impairment charge of CHF68.3 million, including a full CHF40 million goodwill write-off, and that inventory declined by another CHF2.5 million. On liquidity, he reiterated cash of CHF4.4 million and available financing lines of CHF5.2 million, with additional funding potentially available under the Nice & Green structure.

Analysts focused mainly on cash usage, the financing lines tied to Nice & Green, and the timing of Vanillin. Management said second-half cash consumption should be higher than the first half due to capex for the new CMO contract, around CHF6 million to CHF7 million, and explained that extra Nice & Green funding depends first on shares they can sell and later on market-cap thresholds. On Vanillin, Christian Wichert said production would likely move into Q1 2024 because preserving cash now and producing at lower cost next year made more sense. He also said customers were largely understanding and supportive despite the disruption, though some projects are taking longer because of uncertainty.