Renewcell ‘unlikely’ to break even this year
Swedish pulpmaker Renewcell, the developer of 100% recycled textile-based ingredient brand Circulose, has announced that lower-than-expected sales volumes to fibre producers “makes it unlikely” that it will break even on a cash flow basis by year’s end.
The company said it will publish its third-quarter earnings report on November 7.
Despite this slowed sales ramp-up, Renewcell underlined that it “continues to receive strong interest from a large number of brands”, who seek access to the product “in order fulfil [both] the demands of consumers and their sustainability goals”. The manufacturer had sold 14,400 tonnes of Circulose-branded cellulose dissolving pulp as of September 30.
Around one third of this amount has been sold on to producers, with the remainder being purchased by its sales agent pending final onward sale. Renewcell has so far been paid 70% of the latter two thirds' total value, it continued, meaning accounts receivable currently stand at $5 million or 55 million Swedish krona.
Image: Renewcell 1 facility in Sundsvall, Sweden. Credit: Henrik Bodin.
