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Jowell Global Ltd. Announces First Half 2024 Unaudited Financial Results

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2 years ago

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— First Half Revenue of $85.7 million, increase 1.5% year-over-year —

— First Half GMV of $107.3 million, down 7.0% year-over-year —

SHANGHAI, Dec. 19, 2024 /PRNewswire/ — Jowell Global Ltd. (“Jowell” or the “Company”) (NASDAQ: JWEL), one of the leading cosmetics, health and nutritional supplements, and household products e-commerce platforms in China, today announced its unaudited financial results for the six months ended June 30, 2024.

First Half 2024 Financial and Operational Highlights

Total revenues were $85.7 million, an increase of 1.5% from $84.4 million in the same period of 2023.Net loss was $3.8 million, a decrease of 47.1%, as compared to the net loss of $7.1 million in the same period of 2023.Total GMV (Gross Merchandise Value) transacted in our online shopping mall was $107.3 million, a decrease of 7.0% from $115.5 million in the same period of 2023.Total VIP members[1] as of June 30, 2024 were approximately 2.7 million, an increase of 8.5% compared to approximately 2.5 million as of June 30, 2023.Total LHH stores[2] as of June 30, 2024 were 26,795, an increase of 1.0% compared to 26,528 as of June 30, 2023.

[1] “Total VIP members” refers to the total number of members registered on Jowell’s platform as of June 30, 2024
and June 30, 2023.

[2] “LHH stores” refers to the brand name of “Love Home Store”. Authorized retailers may operate as independent
stores or store-in-shop (an integrated store), selling products they purchased through Jowell’s online platform
LHH Mall under their retailer accounts, which provides them with major discounts.

First Half 2024 Financial Results

Total Revenues

Total revenues for the first half 2024 were $85.7 million, representing an increase of 1.5% from $84.4 million in the same period of 2023. Our weighted average unit price was $5.16 per unit for the first half of 2024, which represented an increase of 4.2% as compared to $4.95 per unit for the same period of 2023.

Our health and nutritional supplements revenue for the first half of 2024 increased by about $11.1 million, or 182.1%, as compared to the same period of 2023. The increase in health and nutritional supplements revenue was mainly due to the increase in sales of premium brand health and nutritional supplements. We have stepped up our promotions on these items during the Chinese New Year holidays in the first half of 2024 in an attempt to offer more promotional discounts in response to the overall market downturn.

First Half Ended June 30

%

2024

2023

change

Revenues (in thousands, except for percentages)

US$

US$

YoY*

Product sales

•    Cosmetic products

19,768.5

29,495.5

(33.0 %)

•    Health and nutritional supplements

17,190.7

6,094.2

182.1 %

•    Household products

48,438.7

48,473.1

(0.1 %)

•    Others

286.4

343.4

(16.6 %)

Total

85,684.3

84,406.2

1.5 %

* YOY—year over year

Total cost and operating expenses were $89.6 million in the first half of 2024, a decrease of 1.5% from $91.0 million in the same period of 2023.

Costs of revenues were $84.8 million in the first half of 2024, an increase of 1.3% from $83.8 million in the same period of 2023, which including an increase of $11.1 million in health and nutritional supplements and partially offset by a decrease of $7.9 million in cosmetic products and $1.4 million in household products.Cost of revenues of health and nutritional supplements for the first half 2024 increased about 189.9% as compared to the same period of 2023. The increase was primarily due to a 65.7% increase in weighted average unit cost. The increase in weighted average unit costs for our health and nutritional supplements is mainly because we offered and sold more higher unit price products in the first half 2024 than the same period of 2023.The decrease in the cost of cosmetic products and household products was attributable to a decrease in the weighted average unit cost and a decrease in sales volume. The weighted average unit cost of cosmetic products decreased from $2.94 in the first half of 2023 to $2.47 in the first half of 2024, and weighted average unit cost of household products decreased from $8.18 in the first half of 2023 to $8.11 in the first half of 2024, both decreases mainly due to reduced customers discretionary spendings on premium brands and their preference to low cost, low price and necessity household products during the first half of 2024, as compared to the same period of 2023. The cosmetic products sales volume declined the most, with a decrease of 13.5% during the first half of 2024 comparing to the same period of 2023.Fulfillment expenses primarily consist of costs related to expenses paid for order preparing, packaging, outbound freight, and physical storage. Fulfillment expenses were $0.8 million in the first half of 2024, a decrease of 56.8% from the $1.9 million in the same period of 2023. Fulfillment expenses as a percentage of total revenues were 1% in the first half of 2024, down from 2.3% in the first half of 2023. The significant reduction in fulfillment costs are attributed to our cost reduction measures in logistics. Firstly, we reduced the rental area of warehouses and labor costs in the logistics process; Secondly, we switched to logistics service providers with lower cost to replace the original ones, significantly reducing express logistics costs.Marketing expenses primarily consist of targeted online advertising, and payroll and related expenses for personnel engaged in marketing and selling activities. Marketing expenses were $2.8 million in the first half of 2024, a decrease of 15.8% from the $3.3 million in the same period of 2023. The decrease was primarily due to a decrease in our marketing and promotion activities. Marketing expense as percentage of total revenues was 3.2% in the first half of 2024, down from 3.9% in the same period of 2023.General and administrative expenses mainly consist of payroll, depreciation, office supplies and upkeep. General and administration expenses were $1.2 million in the first half of 2024, a decrease of 40.1% from $2.0 million in the same period of 2023. General and administration expenses as percentage of total revenues was 1.4% in the first half of 2024, down from 2.3% in the same period of 2023.

Operating Loss

Operating loss was $4.0 million for the first half of 2024, compared with the operating loss of $6.6 million in the same period of 2023. The decrease in operating loss for the first half of 2024 was mainly due the decrease of marketing expenses, as well as reduction of operating expenses as discussed above.

Net Loss 

Net loss was $3.8 million, a decrease of 47.1% compared with net loss of $7.1 million in the same period of 2023, which was mainly due the factors mentioned above.

Loss per Share 

The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). Each of the Company’s Preferred Share has voting rights equal to two Ordinary Shares of the Company and each Preferred Share is convertible into one Ordinary Share at any time. Except for voting rights and conversion rights, the Ordinary Shares and the Preferred Shares rank pari passu with one another and have the same rights, preferences, privileges and restrictions. For the first half ended June 30, 2024 and 2023, respectively, the Company had no potential ordinary shares outstanding that could potentially dilute EPS in the future.

Cash and Cash Equivalents

For the first half of 2024, the Company reported a net loss of $3.8 million, a negative operating cash flow of $41,012 and an accumulated deficit of approximately $29.8 million. The Company’s principal sources of liquidity are sales revenues, proceeds from a private placement and a registered direct offering. As of June 30, 2024, the Company had cash and restricted cash of approximately $0.8 million, held by the variable interest entity (VIE) Shanghai Juhao Information Technology Co., Ltd. (“Shanghai Juhao”) with banks and financial institutions inside China as the Company conducts its operations primarily through the consolidated VIE in China; the Company’s working capital as of June 30, 2024 was $13.4 million. Due to the uncertainty of the current market environment, management believes it is necessary to enhance the collection of its outstanding accounts receivable and other receivables, and to be cautious in terms of its operational decisions and project selections. As of October 31, 2024, approximately $1.8 million, or 62%, of its accounts receivable balance as of June 30, 2024 were collected, and approximately $9.9 million, or 93%, of its advances to supplier balance as of June 30, 2024 were utilized. In addition, the Company’s Form F-3 registration was declared effective on August 31, 2022, and the Company may also seek equity financing from outside investors if necessary.

Based on the latest business plan of the Company, Shanghai Juhao has reduced its promotion efforts and marketing expenditures since the second half of 2023, which reduced the cash used in operating activities. Management believes that the above-mentioned factors, including cash on hand of approximately $0.8 million, will provide sufficient liquidity for the Company to meet its future liquidity and capital requirements for at least the next twelve months.

About Jowell Global Ltd.

Jowell Global Ltd. (the “Company”) is one of the leading cosmetics, health and nutritional supplements and household products e-commerce platforms in China. We offer our own brand products to customers and also sell and distribute health and nutritional supplements, cosmetic products and certain household products from other companies on our platform. In addition, we allow third parties to open their own stores on our platform for a service fee based upon sale revenues generated from their online stores and we provide them with our unique and valuable information about market needs, enabling them to better manage their sales effort, as well as an effective platform to promote their brands. The Company also sells its products through authorized retail stores all across China, which operate under the brand names of “Love Home Store” or “LHH Store” and “Best Choice Store”. For more information, please visit http://ir.1juhao.com/.

Exchange Rate

The Company’s financial information is presented in U.S. dollars (“USD”). The functional currency of the Company is the Chinese Yuan, Renminbi (“RMB”), the currency of the PRC. Any transactions which are denominated in currencies other than RMB are translated into RMB at the exchange rate quoted by the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of operations as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”.

This press release contains translations of certain RMB amounts into U.S. dollars (“USD” or “$”) at specified rates solely for the convenience of the reader. The exchange rates in effect as of June 30, 2024 and December 31, 2023 were RMB1 for $0.1403 and $0.1412, respectively. The average exchange rates for the six months ended June 30, 2024 and 2023 were RMB1 for $0.1407 and $0.1444, respectively.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For investor and media inquiries, please contact:

Jowell Global Ltd.
Ms. Jessie Zhao
Email: IR@1juhao.com 

Jowell Global Ltd.

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,

December 31,

2024

2023

(Unaudited)

   ASSETS

   Current Assets:

Cash

$

805,344

$

1,250,281

Accounts receivable, net

2,344,481

2,401,056

Accounts receivable – related parties

–

47,040

Advance to suppliers

10,050,688

3,506,432

Advance to suppliers – related parties

12,493,792

9,874,545

Inventories

4,508,515

8,198,402

Prepaid expenses and other current assets

1,075,591

1,384,758

Total current assets

31,278,411

26,662,514

Long-term investment

3,709,340

3,888,377

Property and equipment, net

845,579

681,942

Intangible assets, net

532,810

634,655

Right of use lease assets, net

1,506,729

2,019,300

Other non-current asset

638,723

895,775

Deferred tax assets

512,175

515,364

Total Assets

$

39,023,767

$

35,297,927

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Short-term loan

$

210,473

$

423,567

Accounts payable

2,791,515

3,765,230

Accounts payable – related parties

280,530

194,818

Deferred revenue

11,691,812

2,309,957

Deferred revenue – related parties

40,000

47,059

Current portion of operating lease liabilities

1,475,947

942,989

Accrued expenses and other liabilities

975,072

782,048

Due to related parties

414,585

528,472

Taxes payable

1,487

58,233

Total current liabilities

17,881,421

9,052,373

Non-current portion of operating lease liabilities

–

1,032,235

Total liabilities

17,881,421

10,084,608

Commitments and contingencies

Equity

Common stock, $0.0016 par value, 450,000,000 shares authorized, 2,170,475 issued
     and outstanding at June 30, 2024 and December 31, 2023, respectively *

3,473

3,473

Preferred stock, $0.0016 par value, 50,000,000 shares authorized, 46,875 issued and
     outstanding at June 30, 2024 and December 31, 2023, respectively *

75

75

Additional paid-in capital

52,687,182

52,687,182

Statutory reserves

394,541

394,541

Accumulated deficit

(29,768,863)

(26,039,567)

Accumulated other comprehensive loss

(2,153,720)

(1,843,970)

Total Jowell Global Ltd. Stockholders’ Equity

21,162,688

25,201,734

Noncontrolling interest

(20,342)

11,585

Total Equity

21,142,346

25,213,319

Total Liabilities and Equity

$

39,023,767

$

35,297,927

* On October 25, 2023, the Company consolidated its ordinary shares at the ratio of one-for-sixteen (“Share
Consolidation”). Immediately following the Share Consolidation, the Company increased the authorized share
capital to $80,000 divided into shares of which (i) 450,000,000 shares are designated as ordinary shares with a
nominal or par value of $0.0016 per share, and (ii) 50,000,000 shares are designated as preferred shares with a
nominal or par value of $0.0016 per share. All shares and per share data for all the periods presented have been
retroactively restated.

 

 

Jowell Global Ltd.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

For the Six Months Ended
June 30,

2024

2023

Net Revenues

$

85,684,310

$

84,406,244

Cost and Operating Expenses:

Cost of revenues

(84,831,857)

(83,763,353)

Fulfillment expenses

(838,764)

(1,942,595)

Marketing expenses

(2,784,515)

(3,306,812)

General and administrative expenses

(1,186,747)

(1,981,967)

        Total cost and operating expenses

(89,641,883)

(90,994,727)

Loss From Operations

(3,957,573)

(6,588,483)

Other Income (Expenses), net

Interest expense

(23,997)

(39,388)

Investment loss

(170,352)

(483,214)

Other income (expense), net

385,341

(2,118)

        Other Income (expenses), net

190,992

(524,720)

Loss Before Income Taxes

(3,766,581)

(7,113,203)

Income Taxes Expense

51

2,761

Net Loss

(3,766,632)

(7,115,964)

Less: net loss attributable to noncontrolling interest

(37,336)

(26,083)

Net Loss Attributable to Ordinary Shareholders of Jowell Global Ltd.

$

(3,729,296)

$

(7,089,881)

Loss Per share – Basic and Diluted

$

(1.74)

$

(3.33)

Weighted Average Shares Outstanding – Basic and diluted*

2,170,260

2,135,574

Net Loss

$

(3,766,632)

$

(7,115,964)

Other Comprehensive Loss, net of tax

Foreign currency translation loss

(304,341)

(1,534,036)

Total Comprehensive Loss

(4,070,973)

(8,650,000)

Less: comprehensive income attributable to non-controlling interest

(31,927)

(25,637)

Comprehensive Loss Attributable to Ordinary Shareholders of Jowell Global
Ltd.

$

(4,039,046)

$

(8,624,363)

* On October 25, 2023, the Company consolidated its ordinary shares at the ratio of one-for-sixteen (“Share
Consolidation”). Immediately following the Share Consolidation, the Company increased the authorized share
capital to $80,000 divided into shares of which (i) 450,000,000 shares are designated as ordinary shares with a
nominal or par value of $0.0016 per share, and (ii) 50,000,000 shares are designated as preferred shares with a
nominal or par value of $0.0016 per share. All shares and per share data for all the periods presented have been
retroactively restated.

 

 

Jowell Global Ltd.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Unaudited)

Common Stock*

Preferred Stock*

Additional
Paid-in

Statutory

Retained
Earnings
(Accumulated

Accumulated
Other
Comprehensive

Total Jowell
Global Ltd.
Stockholders’

Noncontrolling

Total

Shares

Amount

Shares

Amount

Capital

Reserves

deficit)

Income (loss)

Equity

interest

Equity

Balance as of
    January 1,
    2023

2,132,788

$

3,413

46,875

$

75

$

52,557,552

$

394,541

$

(14,572,425)

$

(950,720)

$

37,432,436

$

33,471

$

37,465,907

Share-based
    compensation

3,093

$

5

–

–

129,685

–

–

–

129,690

–

129,690

Capital
    contributed
    by minority
    shareholder

–

–

–

–

–

–

–

–

–

36,105

36,105

Net loss for
    the period

–

–

–

–

–

–

(7,089,881)

–

(7,089, 881)

(26,083)

(7,115,964)

Foreign
    currency
    translation
    loss

–

–

–

–

–

–

–

(1,534,482)

(1,534,482)

446

(1,534,036)

Balance as of
    June 30,
    2023

2,135,881

$

3,418

46,875

$

75

52,687,237

$

394,541

$

(21,662,306)

$

(2,485,202)

$

28,937,763

$

43,939

$

28,981,702

Balance as of
    January 1,
    2024

2,170,475

$

3,473

46,875

$

75

$

52,687,182

$

394,541

$

(26,039,567)

$

(1,843,970)

$

25,201,734

$

11,585

$

25,213,319

Net loss for
    the period

–

–

–

–

–

–

(3,729,296)

–

(3,729,296)

(37,336)

(3,766,632)

Foreign
    currency
    translation
    loss

–

–

–

–

–

–

–

(309,750)

(309,750)

5,409

(304,341)

Balance as of June 30, 2024

2,170,475

$

3,473

46,875

$

75

$

52,687,182

$

394,541

$

(29,768,863)

$

(2,153,720)

$

21,162,688

$

(20,342)

$

21,142,346

* On October 25, 2023, the Company consolidated its ordinary shares at the ratio of one-for-sixteen (“Share
Consolidation”). Immediately following the Share Consolidation, the Company increased the authorized share
capital to $80,000 divided into shares of which (i) 450,000,000 shares are designated as ordinary shares with a
nominal or par value of $0.0016 per share, and (ii) 50,000,000 shares are designated as preferred shares with a
nominal or par value of $0.0016 per share. All shares and per share data for all the periods presented have been
retroactively restated.

 

 

Jowell Global Ltd.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Six Months Ended
June 30,

2024

2023

Cash flows from operating activities:

Net loss

$

(3,766,632)

$

(7,115,964)

Adjustments to reconcile net loss to net cash provided by (used in) operating
activities:

      Depreciation and amortization

160,682

202,822

      Impairment loss from long-term investment

155,449

483,214

      Amortization of operating lease right-of-use assets

501,604

552,702

      Share-based compensation

–

129,690

Property and equipment written off

32,910

–

Changes in operating assets and liabilities:

      Accounts receivables

41,845

1,670,275

      Accounts receivable – related Parties

46,892

251,882

      Inventories

3,650,270

(4,785,784)

      Advance to suppliers

(6,586,006)

17,698,012

      Advance to suppliers – related parties

(2,688,537)

(180,791)

      Prepaid expenses and other current assets

301,516

(280,888)

      Accounts payables

(953,319)

(236,633)

      Accounts payables – related parties

87,183

(1,508,872)

      Deferred revenue

9,418,057

(15,828,565)

      Operating lease liabilities

(488,542)

(552,367)

      Taxes payable

(56,558)

13,098

      Accrued expenses and other liabilities

102,174

(429,988)

Net cash used in operating activities

(41,012)

(9,918,157)

Cash flows from investing activities:

      Due from affiliate

–

(3,177,354)

      Purchase of intangible assets

(2,276)

(4,950)

      Disposal of equipment

–

81,469

      Purchase of equipment

(9,190)

(12,260)

Net cash provided by (used in) investing activities

(11,466)

(3,113,095)

Cash flows from financing activities:

      Proceeds from short-term loans

–

649,913

      Repayment of short-term loans

(211,116)

(2,455,228)

      Proceeds from related party loans

(113,020)

205,846

Net cash used in financing activities

(324,136)

(1,599,469)

Effect of exchange rate changes on cash

(68,323)

(103,551)

Net decrease in cash

(444,937)

(14,734,272)

Cash, beginning of period

1,250,281

16,718,102

Cash, end of period

$

805,344

$

1,983,830

Supplemental disclosure information:

      Cash paid for income tax

$

51

$

2,761

      Cash paid for interest

$

23,997

$

39,388

Supplemental non-cash activities:

      Cash paid in prior year for purchase of intangible assets

$

(640,674)

$

–

      Right of use assets obtained in exchange for operating lease obligations

$

–

$

(98,320)

 

 

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SOURCE Jowell Global Ltd.

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Technology

UPM Half Year Financial Report 2026: Improved second quarter results in all businesses and portfolio change progressing

Published

8 minutes ago

on

July 23, 2026

By

UPM-Kymmene Corporation Stock Exchange Release (Half Year Financial Report) July 23, 2026 at 09:30 EEST

HELSINKI, July 23, 2026 /PRNewswire/ — 

UPM Half Year Financial Report 2026:
Improved second quarter results in all businesses and portfolio change progressing

Q2 2026 highlights, continuing operations

Sales totaled €2,355 million (2,341 million in Q2 2025)Comparable EBIT increased by 71% to €212 million, 9.0% of sales (124 million, 5.3%)All businesses improved their results from last yearUPM and Sappi signed a definitive agreement on the graphic paper Joint VentureThe Board approved a plan to demerge the Plywood business into a new listed company. The Extraordinary General Meeting to decide on the demerger plan will be held on August 31, 2026UPM achieved a Platinum rating from EcoVadis and an A score from CDP for its supplier engagement

H1 2026 highlights, continuing operations

Sales totaled €4,781 million (4,914 million in H1 2025)Comparable EBIT increased by 17% to €471 million, 9.8 % of sales (404 million, 8.2 %)Strong performance in Decarbonization solutions businesses (UPM Energy and UPM Biofuels)Robust sales growth and performance in Advanced materials businesses (UPM Adhesive Materials and UPM Specialty Materials)Operating cash flow was €225 million (468 million)1)The first installment of the dividend for the year 2025 was paid in April, totaling €395 millionNet debt was 3,313€ million at the end of June (3,310 million) and net debt to EBITDA ratio was 2.36 (2.12)1)

1)  Operating cash, net debt and net debt to EBITDA ratio include continuing and discontinued operations.

UPM Plywood is presented as discontinued operations due to the proposed demerger

On April 29, 2026, the Board of Directors of UPM approved a demerger plan for the separation of the Plywood business into an independent listed company. As a result of the proposed demerger, the Plywood business is presented as a discontinued operation in accordance with IFRS 5. Unless otherwise stated, the commentary in this report relates to UPM’s continuing operations. More information in Financial statement information Note 10 assets and liabilities classified as held for distribution to owners and discontinued operations.

Key figures, continuing operations

Q2/2026

Q2/2025

Q1/2026

Q1-Q2/2026

Q1-Q2/2025

Q1-Q4/2025

Sales, € million

2,355

2,341

2,425

4,781

4,914

9,392

Comparable EBITDA, € million

356

250

375

732

659

1,254

% of sales

15.1

10.7

15.5

15.3

13.4

13.4

Operating profit (loss), € million

208

105

245

453

296

719

Comparable EBIT, € million

212

124

259

471

404

883

% of sales

9.0

5.3

10.7

9.8

8.2

9.4

Profit (loss) before tax, € million

182

83

226

409

249

660

Comparable profit before tax, € million

186

103

240

426

359

825

Profit (loss) for the period, € million

163

70

195

358

208

466

Comparable profit for the period, € million

163

87

203

366

305

684

Earnings per share (EPS), €

0.29

0.13

0.36

0.65

0.38

0.86

Comparable EPS, €

0.29

0.16

0.38

0.67

0.56

1.27

Return on capital employed (ROCE), %

5.9

3.2

7.2

6.6

4.2

5.4

Comparable ROCE, %

6.0

3.7

7.6

6.9

5.7

6.5

Capital employed at the end of period, € million

13,954

14,213

14,186

13,954

14,213

13,948

Personnel at the end of period

13,665

14,764

13,347

13,665

14,764

13,676

UPM presents certain measures of performance, financial position and cash flows, which are alternative performance measures in accordance with the guidance issued by the European Securities and Markets Authority (ESMA). The definitions of alternative performance measures are presented in UPM’s  » Annual Report 2025

Key figures, discontinued operations

The financial information presented for the discontinued operations is not representative of the historical or future profitability of the UPM Plywood business area as a standalone business. Information on UPM Plywood’s performance is presented in the segment information.

Q2/2026

Q2/2025

Q1/2026

Q1-Q2/2026

Q1-Q2/2025

Q1-Q4/2025

Sales, € million

84

59

80

164

132

264

Comparable EBITDA, € million

20

7

20

39

19

57

% of sales

23.3

11.9

24.8

24.0

14.8

21.5

Operating profit (loss), € million

9

2

10

20

9

30

Comparable EBIT, € million

18

2

15

33

9

38

% of sales

21.4

3.2

19.0

20.2

6.9

14.4

Profit (loss) before tax, € million

4

2

10

14

9

30

Comparable profit before tax, € million

18

2

15

33

9

38

Profit (loss) for the period, € million

3

1

5

9

7

24

Comparable profit for the period, € million

14

1

9

24

7

31

Return on capital employed (ROCE), %

21.7

3.9

22.0

21.9

9.8

16.4

Comparable ROCE, %

37.4

4.3

32.7

35.1

10.0

20.8

Capital employed at the end of period, € million

196

181

189

196

181

181

Personnel at the end of period

1,519

1,543

1,454

1,519

1,543

1,451

Key figures, UPM total

UPM total

Q2/2026

Q2/2025

Q1/2026

Q1-Q2/2026

Q1-Q2/2025

Q1-Q4/2025

Sales, € million

2,440

2,400

2,505

4,945

5,046

9,656

Comparable EBITDA, € million

376

257

395

771

678

1,311

% of sales

15.4

10.7

15.8

15.6

13.4

13.6

Operating profit (loss), € million

217

107

255

472

305

749

Comparable EBIT, € million

230

126

274

504

413

921

% of sales

9.4

5.2

10.9

10.2

8.2

9.5

Profit (loss) before tax, € million

186

85

236

422

258

690

Comparable profit before tax, € million

204

105

255

459

367

863

Profit (loss) for the period, € million

166

71

200

366

215

491

Comparable profit for the period, € million

177

89

213

390

312

714

Earnings per share (EPS), €

0.30

0.13

0.37

0.67

0.39

0.91

Comparable EPS, €

0.32

0.17

0.39

0.71

0.57

1.33

Return on equity (ROE), %

6.4

2.7

7.6

7.1

3.9

4.5

Comparable ROE, %

6.8

3.4

8.1

7.6

5.7

6.5

Return on capital employed (ROCE), %

6.1

3.2

7.4

6.8

4.3

5.5

Comparable ROCE, %

6.5

3.7

7.9

7.2

5.8

6.7

Operating cash flow, € million

136

179

89

225

468

1,405

Operating cash flow per share, €

0.26

0.34

0.17

0.43

0.88

2.66

Equity per share at the end of period, €

18.86

18.96

19.48

18.86

18.96

18.97

Capital employed at the end of period, € million

14,149

14,394

14,375

14,149

14,394

14,129

Net debt at the end of period, € million

3,313

3,310

2,962

3,313

3,310

3,004

Net debt to EBITDA (last 12 months)

2.36

2.12

2.30

2.36

2.12

2.29

Personnel at the end of period

15,184

16,307

14,801

15,184

16,307

15,127

Massimo Reynaudo, President and CEO, comments on the results:

“In the second quarter, we reached two important milestones in the transformation of UPM. We signed the definitive agreement to create the graphic paper joint venture with Sappi, and advanced the separation of the plywood business into the future WISA Group. Following these steps, UPM is positioned with stronger growth prospects and improved earnings quality.

During the quarter, all our businesses improved their results compared to the same period last year, with most also outperforming the previous quarter. Increased volumes, margin management and sustained efficiency measures supported our profitability in a business environment that turned inflationary.

In Q2, sales from our continuing operations were slightly up at €2,355 million, and comparable EBIT increased to €212 million, 71 percent higher than in the same period last year. Net debt at the end of the reporting period was €3,313 million, including both continuing and discontinued operations, and net debt to EBITDA ratio was 2.36.

In decarbonization solutions, UPM Biofuels recorded a strong quarter with good demand and healthy bio-premiums for advanced renewable fuels. Prices were further supported by higher fossil fuel reference prices. The ramp-up of our biorefinery in Leuna, Germany, continued. Customer deliveries of industrial sugars reached substantial volumes, and deliveries of renewable functional fillers and other lignin derivatives are expected to start during Q3. UPM Energy improved its results from last year, although the second quarter saw normal seasonality. Structurally, electricity consumption continued to grow year-on-year, and we are well positioned to create value by serving new large-scale consumers.

The markets for our advanced materials businesses, UPM Adhesive Materials and UPM Specialty Materials, showed robust growth in Europe and Asia. Both businesses succeeded in the markets, thanks to a focus on commercial excellence and product portfolio development, and sharpened competitiveness.

Our world-class pulp platform in Uruguay, UPM Fibres South, has consistently improved efficiency for several quarters in a row. In the second quarter, this helped us to fully offset the increases in logistics and other costs. Profitability was further improved by a moderate increase in pulp prices.

For the Fibres North platform in Finland, the business environment is challenging. Even though pulpwood prices have decreased, profitability remains low. The second quarter earnings were also impacted by the maintenance shutdown at the UPM Pietarsaari mill. We are planning temporary shutdowns of the UPM Kaukas pulp mill and potentially the UPM Pietarsaari pulp mill, to optimize production and wood sourcing, and ensure profitability.

UPM Communication Papers’ business performance was broadly stable, with slightly improved margins. Preparations for the planned graphic paper Joint Venture continued. In late May we signed the definitive agreement with Sappi, and secured financing arrangements for the Joint Venture. The EU merger control process moved to Phase II, with final resolutions expected by the end of 2026.

UPM Plywood continued to perform well as the business prepared for separation into an independent listed company, WISA Group. In April, the Board of Directors approved the demerger plan. Subject to the decision of the Extraordinary General Meeting, trading in the shares of WISA Group on Nasdaq Helsinki is currently expected to commence in early November. By separating the plywood business onto its own growth path, we are strengthening its future prospects and streamlining UPM’s business portfolio.

Following the planned graphic paper joint venture and plywood separation, UPM operates in structurally growing markets. The ongoing reshaping of UPM’s portfolio highlights our position in businesses with stronger growth characteristics, and our direction going forward is towards higher value-added products and lower cyclicality.”

Profit guidance, continuing operations

UPM’s comparable EBIT in H2 2026 from continuing operations is expected to be approximately in the range of €375-575 million (€479 million in H2 2025, and €471 million in H1 2026). These figures exclude UPM Plywood, which is classified as discontinued operations.

Outlook

There continue to be significant uncertainties in geopolitics and trade.

In H2 2026, compared with H1 2026, UPM’s performance is expected to be supported by moderately higher sales prices. Variable costs are expected to increase moderately. Energy refunds are expected to support UPM Communication Papers’ result in Q4. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs.

In H2 2026, compared with H2 2025, UPM’s performance is expected to benefit from higher sales prices. Variable costs are expected to increase moderately. Fair value change of forest assets is expected to have a significantly smaller impact on comparable EBIT in H2 2026 than in H2 2025 (€131 million). The energy refunds to be booked in UPM Communication Papers in Q4 are anticipated to have a somewhat smaller positive impact than in 2025. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs.

Sensitivity to pulp and electricity prices

UPM’s comparable EBIT is sensitive to pulp and electricity prices. The figures below represent group earnings sensitivities on annual level.

UPM is a large producer and consumer of chemical pulp. A €50/tonne change in average pulp price would impact annual comparable EBIT by approximately €180 million (net impact: assuming no correlation between pulp and paper prices) to approximately €270 million (gross impact: assuming paper pricing would match changes in pulp costs).

UPM is a large producer and consumer of electricity in Finland and separately hedges part of its electricity sales and purchases. Based on UPM’s estimated unhedged net electricity sales position in Finland in 2026, a €10/MWh change in average electricity market price in Finland would impact annual comparable EBIT by approximately €40 million.

Foreign exchange exposure

Fluctuations in monetary policies and economic conditions can significantly impact the value of various currencies, which in turn may affect UPM. Additionally, the escalation of global trade tensions could influence currency exchange rates. These currency fluctuations could impact UPM’s cash flow, earnings, or balance sheet, and may also affect the relative competitiveness between different currency regions.

The Group’s policy is to hedge an average of 50% of its estimated net currency cash flows on a rolling basis over the next 12-month period. At the end of Q2 2026, UPM’s estimated net currency cash flows for the next 12 months totaled approximately €1.5 billion. USD was the largest exposure at approximately €1.4 billion, followed by UYU, GBP, CNY and JPY. In addition, the earnings of UPM’s foreign subsidiaries are translated to euros in reporting. UPM has significant foreign subsidiaries in Uruguay, the U.S. and China. Foreign exchange risks are discussed in UPM’s Annual Report 2025 on pages 313-314.

Invitation to UPM’s webcast on the half-year financial report 2026

A webcast and a conference call for analysts and investors will start at 13:15 EEST. The 2026 half-year financial report will be presented in English by President and CEO Massimo Reynaudo and CFO Tapio Korpeinen. Participants can follow the webcast online via this link.

Participants wishing to ask questions after the presentation must register for the conference call. To participate in the conference call, please register here. After registering, you will be provided with telephone numbers, a user ID and a conference ID to access the conference. To ask a question, press *5 on your telephone keypad to join the queue.

The webcast will be available on the company website for 12 months after the call.

*

It should be noted that certain statements herein, which are not historical facts, including, without limitation, those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar expressions, are forward-looking statements. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein including the availability and cost of production inputs, continued success of product development, acceptance of new products or services by the Group’s targeted customers, success of the existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the Group’s patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the Group’s products and the pricing pressures thereto, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group’s principal geographic markets or fluctuations in exchange and interest rates. The main earnings sensitivities and the group’s cost structure are presented on page 276 of the Annual Report 2025. Risks and opportunities are discussed on pages 31-33, and risks and risk management are presented on pages 128-132.

UPM, Media relations
Mon-Fri 9:00-16:00 EEST
tel. +358 40 588 3284
media@upm.com

UPM
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. Our performance in sustainability has been recognized by third parties, including EcoVadis and the Dow Jones Sustainability Indices. We operate globally and employ approximately 15,100 people worldwide, with annual sales of approximately €9.7 billion. Our shares are listed on Nasdaq Helsinki Ltd.
UPM – we renew the everyday
Read more: upm.com 

Follow us on LinkedIn | YouTube | Instagram | #UPM #materialsolutions #WeRenewTheEveryday 

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Acrab Unveils GΞLIX 1 SoC and Agent Box, Bringing State-of-the-Art AI to the Edge

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8 minutes ago

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July 23, 2026

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Built on a 5-nanometer process, the new SoC is designed to support models in the 100 billion parameter class, with full-stack software for private and responsive AI agents at the edge

SINGAPORE, July 23, 2026 /PRNewswire/ — Acrab, a technology company building agentic AI compute infrastructure for the next generation of intelligent systems, today unveiled GΞLIX 1, its first-generation edge AI system-on-chip (SoC), together with Agent Box, a personal edge AI system powered by the company’s full-stack computing platform.

As AI moves from generating answers to completing tasks, agents increasingly need to understand context, remember preferences and coordinate tools and devices in real time. Running these capabilities locally can produce faster responses, keep sensitive information under the user’s control and maintain core functions when cloud connectivity is limited.

For years, models in the 100 billion parameter class have required cloud infrastructure. GΞLIX 1 is designed to bring state-of-the-art AI models at this scale into locally operated edge systems. Powered by GΞLIX, Acrab’s Agent Box is a high-performance personal edge AI center designed to put AI agents into action in a more personal and customized way, with local large model inference, persistent memory, multimodal interactions and agent orchestration capabilities.

By replacing cloud AI’s recurring token-fees per use, Agent Box is a one-time investment with long-term value, hence relieving users’ token anxiety, and allowing AI to move from an occasional tool into an always-available assistant woven into everyday work and life.

“Generative AI helped people find answers. Agentic AI will help them get things done,” said Dr. Ken Phua, CEO of Acrab. “Running models in the 100 billion parameter class on a system small enough to sit on a desk presents a significant computing challenge. GΞLIX 1 is designed to deliver the performance, memory bandwidth and responsive local inference required, while Agent Box shows how that capability can become a complete user experience.”

A private AI center built for everyday life

Agent Box is designed as a private, always-on AI center for personal workspaces and homes. It keeps intelligence close to the people, information and physical environments it serves, while showing how device makers can turn Acrab’s computing platform into complete agentic AI experiences.

For decades, personal computing advanced in predictable steps: faster processors, larger screens, more storage. Agent Box represents something else entirely—the first system designed not to run programs, but to host intelligence.

Agent Box brings together local language and vision model inference, multimodal interaction, persistent memory and an orchestration layer that can understand goals, break tasks into steps and coordinate action across agents, systems and connected devices. Users’ data and memories remain private and stored locally on the device, while the system grows more capable and customized as the context deepens and memories accumulate. Acrab designed the compute architecture from the ground up to achieve optimal local AI performance, usability, cost efficiency, and power efficiency within one device.

A purpose-designed SoC for large model inference at the edge

GΞLIX 1 is built on a 5-nanometer process and is Acrab’s first SoC designed specifically for edge AI. Rather than relying on separate compute components, it integrates CPU, GPU and NPU resources with a unified memory architecture engineered for large AI models and agentic workloads.

The SoC features a 20-core Arm CPU, multicore NPU acceleration and 273 GB/s of unified memory bandwidth. It is designed to support local deployment of open-source models in up to the 100 billion parameter class, with coordinated execution across CPU, GPU and NPU resources. Supporting models at this scale locally places substantial demands on computing performance, memory bandwidth and power efficiency.

GΞLIX 1 is engineered for rapid responses at power levels suitable for systems that remain active throughout the day. A central design goal was reducing the delay before a model begins to respond, particularly with long prompts and large context windows.

In company testing, GΞLIX 1 achieved a prefill rate of 1416.8 tokens per second under a Gemma 26B A4B configuration with a 40K KV cache and a 10K token input, compared with 188.9 tokens per second on Mac Mini M4 Pro, representing up to 7.5X faster prefill performance. These capabilities turn a single chip into a versatile supercomputing platform for a wide range of applications.

A full-stack platform, from silicon to applications

Beyond the SoC, Acrab has built the software and system layers needed to turn local model inference into working agentic products. These include an optimized runtime and developer toolchain, agent operating system capabilities, reference designs and applications that help devices understand context, retain memory and coordinate real-world action.

Agent Box is the first expression of Acrab’s broader ambition to provide a horizontal computing foundation for agentic AI across a wide range of edge devices and intelligent systems.

Processing a substantial share of AI workloads locally can reduce dependence on metered cloud inference, lower recurring processing and data transfer costs, and avoid the delay involved in sending every interaction to a remote service. Cloud resources can still be used when a task requires them, allowing developers to choose the right balance between local and cloud execution.

Building a broader edge AI device ecosystem

Acrab plans to work with device manufacturers and developers to bring its computing platform into products including AI NAS systems, AI PCs, smart vehicles, and industrial and service robots.

Agent Box demonstrates how Acrab’s silicon and software can be integrated into a complete product experience. The company aims to provide a complete set of compute platform and agent-native infrastructure for the next generation of AI transformation across industries. By combining custom AI silicon, full-stack software, and reference designs of agents for use scenarios, Acrab enables industry partners and developers to bring intelligent AI products to market faster.

“Our goal is to give device makers and developers the foundation to bring agentic intelligence into many different products and environments,” Dr. Phua said. “Agent Box demonstrates what the technology can do today, while GΞLIX 1 and our full-stack platform are designed to support a much broader ecosystem of devices and applications.”

Product Launch Event Video Replay:

https://www.acrab.ai/https://www.youtube.com/watch?v=WdojjwucdTQhttps://www.linkedin.com/events/7484797078045401088/

About Acrab

Acrab is a technology company building agentic AI compute infrastructure for the next generation of intelligent systems. Founded in 2024, the company develops high-performance AI compute architecture and integrated software platforms designed to bring AI agents into action, providing personalized assistance and real-time execution across a range of edge environments.

By combining purpose-designed silicon, advanced edge AI models, full-stack software and system orchestration, Acrab provides the computing foundation for AI agent systems across everyday life, bringing assistance, creativity, utility and value.

In June 2026, Acrab announced that it had received over US$350 million in cumulative financing from global venture capital firms and strategic industry investors, including early backers Vertex Ventures Southeast Asia & India, Vertex Growth, and K3.

For more information about Acrab, please visit https://www.acrab.ai/.

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IDnow Appoints Philippe Morel as Chief Executive Officer

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8 minutes ago

on

July 23, 2026

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Philippe Morel brings over 30 years of financial services and technology leadership experience, with a track record of scaling regulated platform businesses in partnership with private equity.

MUNICH, July 23, 2026 /PRNewswire/ — IDnow, Europe’s leader in digital identity and fraud prevention, today announces the appointment of Philippe Morel as Chief Executive Officer, effective today. Philippe succeeds Andreas Bodczek, who steps down after more than seven years of leadership that transformed IDnow into a leading European provider of digital identity and fraud prevention.

The IDnow Trust Platform: From KYC to Continuous Trust

In June 2026, IDnow launched the IDnow Trust Platform, marking the company’s expansion beyond traditional identity verification. Designed to help regulated organisations move from Know Your Customer (KYC) to Trust Your Customer (TYC), the platform orchestrates identity verification, fraud prevention, biometric authentication and qualified digital trust services across the full customer lifecycle. Through four modular services — Identify, Authenticate, Protect and Trust — and its Orchestrate, Observe and Decide capabilities, customers can configure workflows, monitor risk signals in real time and automate decisions through a single integration. The platform is built to help organisations adapt to the evolving European regulatory landscape, including AMLR, eIDAS 2.0 and the emergence of EU Digital Identity Wallets, while addressing increasingly sophisticated AI-driven fraud.

A New Chapter for IDnow

Philippe Morel brings more than 30 years of leadership experience spanning financial services, technology platforms and regulated environments, with a consistent track record of strategic transformation and value creation in partnership with private equity.

Most recently, Philippe served as Chief Executive Officer of Railsr, a payments and embedded finance platform, where he led strategic repositioning and commercial rebuilding before the merger with Equals Money.

Prior to that, Philippe served as CEO of SETL, a blockchain-based financial market infrastructure provider, where he repositioned the business into payments and digital settlement networks, launched the Regulated Liability Network (RLN) tested with the New York Federal Reserve, and delivered tokenisation projects for tier-one financial institutions.

Before his executive career, Philippe worked at Boston Consulting Group, rising to Senior Partner and Managing Director. He led BCG’s Global Capital Markets practice and its Private Equity EMEA business, advising boards and CEOs of major financial institutions on strategy, transformation, M&A and growth across Europe, the US and Asia. He also served for nine years as Chair of BCG’s Global Audit and Risk Committee.

Philippe holds an MBA from Harvard Business School and a degree in Finance from HEC Paris.

Board Statement

Martin McCourt, Chair of IDnow, said: “We are delighted to welcome Philippe to IDnow at a pivotal moment. IDnow has recently launched its Trust Platform, expanding beyond traditional identity verification to help regulated organisations orchestrate identity, fraud prevention and compliance across the full customer lifecycle. Philippe’s background — combining deep strategic expertise with hands-on leadership of regulated technology and financial services platforms — is ideally suited to the opportunity ahead. We are confident that he will lead IDnow into its next phase of growth.”

Philippe Morel Statement

“IDnow is a genuinely exceptional business — a European-born leader in digital identity and fraud prevention at a moment when regulation, digital identity wallets and increasingly sophisticated fraud are reshaping the market. The newly launched IDnow Trust Platform is designed to help customers move beyond one-time verification towards continuous trust across the full customer lifecycle. I am energised by what this team has achieved and by the opportunity ahead. My first priority is to listen: to our customers, our colleagues and our partners. From there, we will define and execute IDnow’s next phase of growth together.”

A Tribute to Andreas Bodczek

The Board also takes this opportunity to express its deep gratitude to Andreas Bodczek, who has led IDnow with extraordinary vision and commitment since 2018. A seasoned technology entrepreneur with a Diplom Kaufmann from LMU München, Andreas brought to IDnow the experience of building and scaling digital businesses: as co-founder and CEO of Fyber, which he grew into a globally recognised mobile technology platform, a board partner at Point Nine Capital, and chairman at JTL Software.

At IDnow, his impact was transformative. He led the company through a pivotal transition from founder-led to PE-backed under Corsair’s ownership, providing the foundation for sustained growth. He drove the acquisitions of identity Trust Management AG and ARIADNEXT — the French market leader in remote identity verification — which significantly expanded IDnow’s capabilities, brought the Rennes engineering hub into the group, and established IDnow’s presence across Europe. Most recently, he oversaw the launch of the IDnow Trust Platform, marking the company’s expansion beyond traditional identity verification and creating a unified platform for identity, fraud prevention, authentication and qualified digital trust services across the customer lifecycle. His leadership has positioned IDnow well for its next chapter, and we wish him every success in what comes next.

About IDnow

IDnow is Europe’s leader in digital identity and fraud prevention, with a mission to transform trust into a powerful asset in the digital world. Through its broad portfolio of AI-driven, SaaS-based identity and fraud prevention solutions, IDnow establishes, maintains and enriches trust throughout the customer journey, enabling businesses to operate securely while driving growth and scalability. The IDnow Trust Platform provides unified access to identity verification, fraud prevention, biometric authentication and qualified digital trust services. IDnow has offices in Germany, the United Kingdom, Romania and France and is backed by Corsair Capital.

For more information, visit idnow.io. 

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