Solar Foods Oyj, company announcement 27 February 2025 at 12:30 EET
Solar Foods Oyj Financial Statements Release 1.1.-31.12.2024: Transformative year sets the foundation for the next strategy period
This announcement is a summary of Solar Foods Financial Statements Release 2024. The full Financial Statements Release 2024 is attached to this announcement and available at investors.solarfoods.com
January-December 2024 in brief
- Cash and cash equivalents at the end of the period EUR 13.4 million (16.4)
- Other operating income EUR 8.1 million (5.1)
- Operating loss EUR 8.9 million (6.8)
- Loss for the period EUR 11.0 million (9.0)
- Investments EUR 9.1 million (8.0)
- Loss per share EUR 0.46 (0.44)
July-December 2024 in brief
- Cash and cash equivalents at the end of the period EUR 13.4 million (16.4)
- Other operating income EUR 5.2 million (3.1)
- Operating loss EUR 4.6 million (3.4)
- Loss for the period EUR 5.3 million (4.9)
- Investments EUR 4.6 million (4.7)
- Loss per share EUR 0.21 (0.24)
Significant events in January-December 2024
- Start-up of Factory 01 and production of its first Solein batches. Launch of new headquarters, including Solein Kitchen and restaurant space intended for demonstration use.
- In April, Solar Foods became the first Finnish then private company to acquire Nasdaq Green Equity Designation - Private Company label from Nasdaq.
- Launch of Fazer's Taste the Future chocolate bar containing Solein in Singapore.
- Obtaining self-affirmed GRAS (Generally Recognized as Safe) status for Solein in the United States in September 2024. The company registered its Factory 01 production facility with the U.S. FDA and met all requirements for the commercialization of Solein in the United States, enabling the launch of commercial activities in November 2024.
- Listing on the Nasdaq First North Growth Market Finland marketplace on 10th September 2024.
- Launch of Solein-containing products by the Japanese Ajinomoto Group in Singapore: Atlr.72 Flowering Mooncakes and Ice Cream Sandwiches.
- International NASA Deep Space Food Challenge victory in the international category in the United States.
- Ilkka Saura, CFO, and Juan Manuel Benitez-Garcia, CCO, appointed to the Management Team in April. Troels Nørgaard, Chief Strategy Officer, and Benoit Formesyn, Project Director appointed to the Management Team in September. Petri Tervasmäki, CTO, appointed to the Management Team in December, while Vice President, Production Jouni Ahtinen and Project Director Benoit Formesyn left the Management Team.
- During autumn 2024, the company started a review to further define its strategy leading to the publication of the company's reviewed strategy in conjunction with the company's Capital Markets Day on 10th December. As part of the strategy process, new long-term financial targets were also published.
Significant events after the review period
- 30th January 2025, the company announced the appointment of Rami Jokela as the company's new Chief Executive Officer (CEO) and member of the Management Team, effective 1st April 2025.
- The Company addressed inquiries from the European Food Safety Authority (EFSA) regarding the scientific opinion on the safety of Solein, which brings the company one step closer to introducing Solein to the European market.
- KelpEat, the pioneering Italian food innovator dedicated to revolutionizing sustainable nutrition, introduced a Solein-powered high-protein snack in the Pitti Taste food fair in Florence 8th-10th February.
- The company entered into an Engineering & Procurement partnership agreement with Blue Projects and begun the pre-engineering of its first industrial-scale Solein® production facility, Factory 02.
- The Board of Directors proposed to Annual General Meeting 2025 on the composition and remuneration of the Board. The Annual General Meeting will be held 25th March 2025.
- Business Finland granted funding for Solar Foods amounting to EUR 10 million on 26 February 2025, related to the company's IPCEI (Important Projects of Common European Interest) notification approved by the European Commission, for the research, development and go-to-market for Solein protein.
Key figures
| MEUR | 7-12/2024 | 7-12/2023 | Change, % | 1-12/2024 | 1-12/2023 | Change, % |
| Revenue | 0 | 0 | 42 | 0 | 0 | 275 |
| Other operating income | 5.2 | 3.1 | 65 | 8.1 | 5.1 | 57 |
| Operating profit/loss | -4.6 | -3.4 | -32 | -8.9 | -6.8 | -31 |
| Profit/loss for the period | -5.3 | -4.9 | -7 | -11.0 | -9.0 | -23 |
| Equity ratio, % | 50 | 48 | 2 | |||
| Investments | 4.6 | 4.7 | -2 | 9.1 | 8.0 | 14 |
| Cash and cash equivalents at the end of the period | 13.4 | 16.4 | -18 | |||
| Basic and diluted earnings per share (EPS), EUR | -0.21 | -0.24 | 13 | -0.46 | -0.44 | -5 |
| Personnel at the end of the period | 53 | 31 | 71 |
CEO Pasi Vainikka: Foundation laid for transition to new strategy phase - Company enters international growth phase
The past year marks a historic milestone in Solar Foods' journey from vision to reality. With 2024, we successfully completed our first strategic period (2018-2024) and achieved its three main objectives. We delivered a new crop to humanity, Solein, which was approved as a novel food. We proved Solein's excellent usability in various food categories up to consumer product launches. In addition, the Factory 01 production facility demonstrated the scalability of our hydrogen fermentation technology.
In September, we obtained self-affirmed GRAS (Generally recognized as safe) status for Solein in the United States and registered our Factory 01 with the U.S. Food and Drug Administration (FDA). This enabled the launch of Solein in the United States in November. The first taste of the future of food was experienced in collaboration with award-winning chef Greg Baxtrom at his prestigious Olmsted restaurant in New York. Entering the U.S. market is a major milestone for Solein as it's one of the largest protein-consuming markets in the world.
Consumers in Singapore were able to sample products containing Solein during the year. Fazer introduced the Solein-containing Taste the Future chocolate bar, and the Japanese Ajinomoto launched two test-marketing products in the autumn: Traditional Flowering Mooncakes and Ice Cream Sandwiches. The products were well received and became available again in December.
During the year, we also made significant progress in bioprocess productivity at our pilot plant. We plan to replicate these productivity improvements also at Factory 01. This will have an impact on the production cost of Solein.
Entering the commercial growth phase
Having achieved the objectives of our first strategy period, we look forward to the next phase, the details of which we announced at our Capital Markets Day in December. This new strategic phase will guide us until 2030 and will focus on commercializing Solein in the U.S. and scaling up production at both the existing Factory 01 and the upcoming Factory 02, which is currently in the pre-engineering stage.
Our commercialization strategy in the United States focuses on the Health & Performance Nutrition segment, which is one of the world's most important markets for high-protein products. In this segment, we are focusing on ready-to-mix powders, ready-to-drink beverages and protein bars. We are also moving from offering powder prototypes to a conceptual sales model where we will introduce finished products containing Solein. Over the winter, we will focus on customer work in the United States, especially with companies in the Health & Performance Nutrition sector. We will also be attending industry events.
To meet demand, we plan to expand the design capacity of Factory 01 from 160 tons to 230 tons in 2026. In connection with the strategy update, we also published a phased investment plan for Factory 02. This industrial-scale production facility will be the cornerstone of our international growth strategy. The pre-engineering phase for Factory 02 started in February 2025.
In January, we announced that Solar Foods had appointed Rami Jokela as its new CEO, effective 1st April 2025, to lead the company's international growth phase. This change in the company's leadership is a strategically important part of the Solar Foods story as the company moves from groundbreaking technological development to the implementation of its global business strategy.
In February, we took an important step towards the launch of Solein in Europe by responding to inquiries from the European Food Safety Authority (EFSA) for a scientific opinion on the safety of Solein. We have previously communicated that we expect to obtain EU novel food authorisation during 2026. In February, Italian food innovator KelpEat presented a Solein-containing protein snack at the Pitti Taste food event in Florence, and the company plans to bring the product to the US consumer market.
Our mission is ambitious: bring Solein to market globally, revolutionise sustainable food production and continue to deliver value to our shareholders, stakeholders and the planet, and we are now ready to enter the next phase on this journey. The dedication of our team and our successful listing on the Nasdaq First North Growth Market Finland have created a solid foundation for this global growth journey.
Assessment of future development
The company will focus on the go-to-market activities in the Health & Performance Nutrition segment, particularly in the U.S. market. The company plans to transition to a concept-based sales model, introduce higher-priced products, and expand the design capacity of Factory 01. Additionally, Solar Foods is preparing a phased investment plan for Factory 02 to achieve positive EBITDA during strategic period 2025-2030.
The management assesses the adequacy of the company's financing and the fulfillment of covenant terms from the perspective of business continuity and action planning using cash flow forecasts. Based on the information available, the company's financing is estimated to cover the business needs for at least the next 12 months, taking into account the risks associated with ongoing and upcoming projects. The fulfillment of covenant terms requires the liquidity forecasts to be realized as planned.
The company's existing financial targets continue to serve as its financial guidance. In accordance with Solar Food's disclosure policy, the company does not provide financial guidance for the current financial year but will assess the possibility of issuing it later during the financial year 2025.
Board of Directors' proposal for the distribution of profits
In the medium term, Solar Foods focuses on growth and the company does not expect to distribute a dividend in the short to medium term. The distributable unrestricted equity of Solar Foods on 31 December 2024 was EUR 19,179,599.86, of which the result of the period was EUR -11,021,649.65. The Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the financial year January-December 2024, and that the loss of the financial year is recorded in the retained earnings.
Webcast event
CEO Pasi Vainikka and CFO Ilkka Saura will present the main points of the release in a live webcast on 27 February 2025 at 14:00 EET. The event is in English and can be followed at https://solarfoods.videosync.fi/q4-2024
Participants can ask questions during the webcast via the chat function of the video platform. A recording of the event will be published afterward on the company's website at www.investors.solarfoods.com/en/
Further Information
CEO Pasi Vainikka. pasi@solarfoods.com, tel: +358 10 579 3286
Certified Advisor
Carnegie Investment Bank AB (publ)
About Solein®
Solein is an all-purpose protein grown with the air we breathe: The unique bioprocess takes a single microbe, one of the billion different ones found in nature, and grows it by fermenting it using air and electricity and thereby converting carbon dioxide to protein. Solein is a nutritionally rich and versatile ingredient which can replace protein virtually in any food. Solein can also be used as a fortifier to complement the nutritional profile of various foods: it can be a source of iron, fiber and B vitamins, and it can also bring different techno-functionalities into food products. www.solein.com.
About Solar Foods
Solar Foods produces Solein®, a protein created using carbon dioxide and electricity. This innovative production method is independent of weather and climate conditions, eliminating the need for traditional agriculture. Founded in Finland in 2017, Solar Foods is listed on the Nasdaq First North Growth Market Finland. Learn more at www.solarfoods.com and investors.solarfoods.com.
