(Gothenburg, Sweden August 20th, 2021)– Heliospectra AB(publ (Nasdaq First North Growth Market:HELIO), a world leader in intelligentlighting technology for greenhouse and controlled plant growth environments,presents its’ Half Year Report for January-June 2021.
Fullreport is enclosed to this press release and is also uploaded at https://www.heliospectra.com/investor-relations/investor-relations.
SUMMARY OF REPORT:
Sales And Financial Performance, January–June
Order intake duringthe period April - June amounted to SEK -61,492 thousand. This figure includesthe order cancellation from Nectar Farms, Australia, which was announced inApril 2021. Excluding this cancellation, order intake during the periodamounted to SEK 10,171 (1,717) thousand. For the period January - June, thecorresponding figure is SEK 22,706 (4,181) thousand.
Net sales duringthe period April - June amounted to SEK 8,768 (4,674) thousand and operatingprofit amounted to SEK -9,230 (-13,185) thousand, implying a negative operatingmargin (negative). Profit after tax was SEK -9,230 (-13,137) thousand. For theperiod January - June, net sales amounted to SEK 18,728 (19,874) thousand andoperating profit amounted to SEK -16,532 (-22,242) thousand, implying anegative operating margin (negative). Profit after tax was SEK -16,537(-22,190) thousand.
Cash Flow, January – June
Operating cash flow was SEK -14 755 (-28 285)thousand. Total cash flow was SEK -20 320 (-28 371) thousand. Cash flow frominvestment activities mostly refers to capitalized work for own account in theform of product development.
Despiteexperiencing many of the same COVID driven challenges that most globalindustries have endured – such as supply chain issues, delayed investments, andeconomic uncertainty – we have made measurable progress during the firsthalf-year. If we isolate the effect of the order cancelation from Nectar Farms,we have received orders to date which outpace 2020 by 443% while our sales forthe half year drop by 6% compared to same period last year. The operating costhas been adjusted to cope with our current market situation which resulted inimproving EBITDA by 27,7% compared to the previous year. We have also madegreat strides in productizing our patented biosensor technology and we areincreasingly optimistic of our development of this revolutionary solution.
The Nectar Farmsorder cancellation was another byproduct of the uncontrollable circumstancescreated by COVID. Unfortunately, the customer was unable to raise an adequatelevel of funding in time. Although this was a bitter pill to swallow, ourorganization should feel proud that such a big client chose Heliospectra LEDgrow lights above all else after nearly three years of vigorous product andcompetitive analysis.
Looking ahead, weare excited about nearing the commercialization of our patented biosensortechnology. This is a game changer that will not only improve our position inthis space, but also solidify our reputation as a technologically innovativecompany. The patented biosensor technology will revolutionize the CEA(controlled environment agriculture) industry by allowing growers tocommunicate with their crops and dynamically adjust production requirements.For example, this technology will alert growers to the type of light the cropneeds at different stages of its growth. By being able to respond to the crop’s needs in “real time”, growerswill be able to cultivate higher quality crops at a faster rate with much lesscrop waste and thus significantly increase their profit. We have already passed the functionalvalidation of our solution and fielded a significant amount of commercial andresearch interest. As such, we will continue to focus on finalizing thisproduct and bringing it to market early next year.
In parallel, we arealso working hard to optimize our product offerings and expand our globalpresence in the marketplace. We are working on a comprehensive solution thatcombines our industry leading light fixtures with our control platform andbiosensor technology. By offering this packaged solution we hope to furthersupport and meet the expanding needs of both our existing and future customers.We have also been focused on expanding our global presence by strengthening oursales channels. Heliospectra has partnered with two new resellers. MineARCSystems, a global leader in manufacturing and supply of controlledenvironments, will represent Heliospectra’s products and solutions in theAustralian market. Harahara Inc., a long-term supplier of cultivationsolutions, will be doing the same for the controlled environment agricultureand PFALs markets in Japan. We will continue to expand our reseller network inthe coming months by partnering with locally trusted and capable resellers.
Looking forward,our goal is to elevate and re-set the technology standard in horticulture byproviding an integrated solution that focuses on crop and production yield. AsLED lights are increasingly viewed as a commodity, we will differentiateourselves and our products by focusing on practical innovations that will helpdefine the future of lighting in horticulture and bring value to our customers.In support of these goals, we will continuously review our strategy to ensurewe have the right balance between our commercial practices and R&D.
Additionally, as wecontinue to battle extraordinary societal and marketplace challenges, we willmaintain great relationships with our existing customers to ensure we are readyto accept and deliver their delayed, but forthcoming, orders as well as providea clear path to introducing our new, state-of-the-art biosensor technologysolution.
Thank you for yourcontinued support and we look forward to regularly updating you on our progressfor the remainder of year.
President & CEO
For More Information:
Rebecca Nordin, Head ofIR at Heliospectra | +46 (0)72 536 8116 | firstname.lastname@example.org
Heliospectra AB (publ) (Nasdaq First North GrowthMarket: HELIO) was founded in 2006 in Sweden by plant scientists andbiologists with one vision – to make crop production more intelligent andresource-efficient. Today, with customers across seven continents,Heliospectra is the global leader in innovative horticulture lightingtechnology, custom light control systems and specialized services forgreenhouse and controlled plant growth environments. Designed by growersfor growers, Heliospectra builds customized LED lighting strategies andcontrols to automate production schedules, forecast yields and monitor crophealth and performance with real-time data and response, to deliver the lightplants love and the consistent results growers need.
For more information, pleasevisit https://www.heliospectra.com.
Company HELIO is listed at NasdaqFirst North Growth Market with Redeye AB as Certified Adviser:
Certifiedadviser@redeye.se, +46 (0)8 121 576 90.
The statements in this press release constituteforward-looking statements within the meaning of federal securities laws. Suchstatements are based on our current beliefs and expectations and are inherentlysubject to significant business, economic and competitive uncertainties andcontingencies, many of which are beyond our control. In addition, suchforward-looking statements are subject to assumptions with respect to futurebusiness strategies and decisions that are subject to change. Potential risksand uncertainties include, but are not limited to, technical advances in theindustry as well as political and economic conditions present within theindustry. We do not take any obligation to update any forward-looking statementto reflect events or developments after a forward-looking statement was made.
This information was submittedfor publication at 08,30 CEST on the 20th of August, 2021.