(Gothenburg, Sweden October 22, 2021, at 08:30 CEST)– Heliospectra AB(publ (Nasdaq First North Growth Market: HELIO), a world leader inintelligent lighting technology for greenhouse and controlled plant growthenvironments, presents its’ Interim Report for July - September 2021.
Full report is enclosed tothis press release and is also uploaded at https://www.heliospectra.com/investor-relations/investor-relations.
SUMMARY OF REPORT:
SalesAnd Financial Performance for the period July - September and January –September
Order intake during theperiod July - September amounted to SEK 6,923 thousand. For the period January- September, the corresponding figure is SEK -42,034 (10,916) thousand. Thisfigure includes cancellation of orders from Nectar Farms, Australia, which wasannounced in April 2021. Excluding this cancellation, order bookings during theperiod January - September amounted to SEK 29,628 (10,916) thousand.
Net sales during the periodJuly - September amounted to 5,215 (7,464) and operating profit amounted to SEK-15,549 (-8,518) thousand, implying a negative operating margin (negative).Profit after tax was SEK -15,547 (-8,557) thousand. For the period January -September, net sales amounted to SEK 23,943 (27,338) and operating profitamounted to SEK -32,081 (-30,759) thousand, implying a negative operatingmargin (negative). Profit after tax was SEK -32,084 (-30,747). As communicatedon 7 October, operating profit includes a provision of SEK 5.4 million to coverany additional warranty and conversion costs that might arise in the future.
CashFlow, January – September
Operating cash flow was SEK-25,294 (-35,442) thousand. Total cash flow amounted to SEK -32,993 (-35,743) thousand.Cash flow from investing activities mostly refers to capitalized work for ownaccount in the form of product development.
During the third quarter,we – and many other industries – experienced the ongoing impact from COVID,primarily supply chain issues, market uncertainty, and client constructiondelays. These systemic challenges prevented us from achieving our targets forthis year. The North American cannabis industry, which currently represents asizeable portion of our sales pipeline, has been affected by delays inlicensing and permits and increased construction costs. The current uncertaintyin the cannabis market strengthens our strategic direction taken at thebeginning of the year to focus more on food growers and greenhouseinstallations. These segments typically have a longer sales cycle but willyield a steadier pipeline and larger sales volumes.
As previously announced, inQ3 of this year Heliospectra identified a faulty fuse in a limited productionseries of the MITRA model. Not only has this issue been resolved, but we alsoproactively worked with the customer to replace the affected fixtures. Still,the failure rates of our products fall well within the industry standard. TheHeliospectra brand has always been associated with quality and reliability andwe have taken strict measures to avoid problems like this from happening in thefuture.
This year we have allocatedmost of our development resources towards the development of our bio-sensortechnology. Since Heliospectra’s inception in 2006, the founder’s vision was todevelop plant lighting based on biofeedback systems. They wanted to use sensorsto measure the health of the plant, and then adapt the lighting to optimizegrowth and quality. By outsourcing the majority of our product development to afew reputable consultancy firms in Sweden, we have been able to fast-track ourtime to market and are finally starting to see that vision become a reality.
Heliospectra’s patentedbiosensor technology works by measuring fluorescence (light given off by aplant that is not used for photosynthesis or converted into heat) from theplants' foliage. By measuring the fluorescence, the biosensor can interpret thesignals using software and tell the grower how the plants are doing. Combiningthat with a control system and automatic adjustments can be made to optimizethe light environment. Heliospectra is also developing two new modules for thehelioCORETM control system to complement this new biosensor technology: GrowthTracking Control and Optimal Light Control. Allowing us to sell the newtechnology as a complete solution together with our LED lights and controlsystem, or as a stand-alone solution compatible with most installations on themarket, creating a new business opportunity with great potential.
Today,food loss or waste is a huge problem and occurs throughout the food system –during production, processing, distribution, retail, and consumption. Thisproblem not only amounts to a major squandering of precious resources,including water, land, energy, labor, and capital but also needless productionof greenhouse gas emissions, contributing to global warming and climate change.With our new sensor technology, growers will be able to detect stress, quicklyidentify problems, and closely measure plant growth. The result is improvedquality, greater precision and more control over their crops, reduced waste,and an improved cultivation economy.
The launch of the new biosensor is the start of acompletely new and exciting phase for Heliospectra as a company. We arefinalizing our product development, and starting next year, we will begininstallation trials to measure the economic value of our technology, helping tomake the value proposition more transparent for growers.
Heliospectra continues toprovide innovative technology and operational excellence to our growers whileat the same time making cultivation more sustainable and resource efficient. Bylaunching our biosensor technology on the market, we are now taking the nextstep in realizing the founders’ vision of revolutionizing the cultivationindustry and highlighting the importance of data-driven production.
As always, I thank you foryour steadfast support and continued commitment to the Heliospectra vision.
President & CEO
For More Information:
Rebecca Nordin, Head ofIR at Heliospectra | +46 (0)72 536 8116 | email@example.com
Heliospectra AB (publ) (Nasdaq First North Growth Market:HELIO) was founded in 2006 in Sweden by plant scientists and biologistswith 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,please visit https://www.heliospectra.com.
Company HELIO is listed atNasdaq First North Growth Market with Redeye AB as Certified Adviser:
Certifiedadviser@redeye.se,+46 (0)8 121 576 90.
The statements in this press release constitute forward-looking statementswithin the meaning of federal securities laws. Such statements are based on ourcurrent beliefs and expectations and are inherently subject to significantbusiness, economic and competitive uncertainties and contingencies, many ofwhich are beyond our control. In addition, such forward-looking statements aresubject to assumptions with respect to future business strategies and decisionsthat are subject to change. Potential risks and uncertainties include, but arenot limited to, technical advances in the industry as well as political andeconomic conditions present within the industry. We do not take any obligationto update any forward-looking statement to reflect events or developments aftera forward-looking statement was made.
This information is such which HeliospectraAB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation.The information was submitted for publication, through the agency of thecontact person set out above, at 08:30 CEST, October 22nd, 2021.