(Gothenburg, Sweden February 25,2022, at 08:40 CET)–Heliospectra AB (publ (Nasdaq First North Growth Market: HELIO), aworld leader in intelligent lighting technology for greenhouse and controlledplant growth environments, presents its’ Year-End Report for 2021.
Full report is enclosed to this press release and is alsouploaded at https://www.heliospectra.com/investor-relations/investor-relations.
SUMMARY OF REPORT:
Financial Performance forthe period October - December and January – December
Order intake during the periodOctober - December amounted to SEK 4,248 (9,440) thousand. For the full year,the corresponding value is SEK -37,786 (20,356) thousand. This value includescancellation of the order from Nectar Farms, Australia as announced in April2021. Excluding the cancellation, the order value in 2021 amounted to SEK33,876 (20,356) thousand.
Net sales during the period October - Decemberamounted to SEK 11,278 (11,296) thousand and operating profit amounted to SEK-27,895 (-9,481) thousand, implying a negative operating margin (negative).Profit after tax was SEK -27,892 (-9,485) thousand. For the full year, netsales amounted to SEK 35,221 (38,634) and operating profit amounted to SEK-59,975 (-40,241) thousand, implying a negative operating margin (negative).Profit after tax was SEK -59,976 (-40,233) thousand.
Operating cash flow for the period January - Decemberwas SEK -33 069 (3 260) thousand. Total cash flow was SEK -44 734 (1 214)thousand. Cash equivalents at the end of the period were SEK 10,723 thousand.
Beginning 2022, I took over the leadership role atHeliospectra. As a board member since May 2021, I was, of course, alreadyfamiliar with the important strategic topics of Heliospectra. However, fromJanuary 1st, I took a deep dive into the operations and used the first month tofamiliarize myself in detail with the organization and all pending projects. Inshort, Heliospectra has a very competent and motivatedteam, but in my view, too much focused on product development and too less on thecustomer and market. That is why I have created a helioCARE™ team under theresponsibility of the marketing manager and took sales and innovation directly under myresponsibility. The number one priority for the whole organization is to bringour innovative solutions as soon as possible to the market.
Commenting on our financial performance, we canconclude that sales did not live up to expectations during 2021. Although oursales team worked harder than ever to solidify our connections with growers, wecan't deny that the Covid pandemic has significantly impacted the company. TheNectar Farms order in Australia was cancelled following the company's voluntaryliquidation. The economic uncertainty mainly related to increasing energyprices and disruption in the worldwide supply chain has negatively affected thelevel of investments in lighting systems in the horticulture industry. We, andthe industry, are also struggling with a shortage of components resulting inincreased production costs and prolonged lead times, negatively impacting ourmargin and sales.
Heliospectra started adjusting and lowering itsoperating costs beginning of Q3 to mitigate the lower sales numbers andpressure on the margin. In the process of reducing structural our operationalcosts and product cost basis, the company has had significant non-recurringoperating expenses during the fourth quarter, including write-offs ofcomponents and intangible assets as well as other costs connected to changes inthe product and overall strategy of the company to a total of SEK 16,7million.
As previously announced, in Q3 the company discovered a faulty fuse in a limitedproduction series of the MITRA model. All reported supportcases, which represent half of the affected products, have been handled. AnotherSEK 4 million is carried to cover additional warranty and conversion costs,should they arise.
New strategic direction
2021 ended with the company announcing a strategicshift towards sustainable data-driven cultivation. As a result, the companyrepositions itself from being mainly a supplier of LED lights, targetinggreenhouse and indoor growers needing new lighting, to a system supplier withinSmart Farming. Combining sensors, controllable LED lighting, our helioCORE™light software, and the expertise of our helioCARE™ team, Heliospectra offers aunique solution for the high-tech horticulture industry.
With our wireless solutions, we can control eachindividual fixture in a greenhouse or indoor facility. When combined with ourAI solutions, we provide significant energy savings for our customers,maintaining target light quantity and quality compared with present lightsolutions in the market. With our knowledge, we will help customers choose theright light spectrum for their specific condition to maximize yield and/orquality and to speed up the learning curve growing with LED lights.
We move from a product-centric to acustomer-centric organization by placing the customer at the centre of all thatwe do. By identifying our customers' needs, challenges, and pain points relatedto lighting and energy consumption, building Smart solutions, and focusing onthe whole customer experience, Heliospectra will claim her position as a leaderin Smart Lighting.
Heliospectra was already in 2014 in the forefrontof Smart Lighting with the fully controllable ELIXIA platform. The company has had a strong, reliablebrand image within the AgTech and University segment, where precision andflexibility are critical for a trial's success. In the last couple of years,the need for control and automation has also reached the commercial greenhouseindustry. The driving forces behind these trends are the ambition for moresustainable, efficient, automated, and predictable crop production.
Heliospectra is continuously working with leadingUniversities and researchers to build on our expertise. In 2021 we joined twonew research projects; A new partnership with Carlton College, a privateCollege in Northfield, Minnesota, USA, was established as they upgraded theirgreenhouse and research facility for more control and flexibility. We alsostarted a new research project with LEDs Make it Resilient, a Belgian researchproject studying how light affects crop output and resilience, focusing onbumblebees and biocontrol agents.
Finalizing development projects
Our focus has always been on deliveringsustainable, innovative technology with tangible results for our growers. Aspreviously announced, 2022, will be a transitional year where we will finishnew functionalities in our present offer and will launch several new updatesand new partnerships to enhance the company's new data-driven and wirelesssolution offering. Including an updated version of the company's control systemhelioCORE™, a new generation of the MITRA LED lighting, and the AdelFi, aWIRELESS connector that enables MITRA integration with the helioCORE™ controlsystem and sensors. This will create promising opportunities in thepost-pandemic era.
Last, by not least, I want to mention our patentedBio-feedback sensor. In April, Heliospectra was awarded a research grant ofMSEK 1,750 from Vinnova, the Swedish Innovation Authority, for continueddevelopment of the company's patented Bio-feedback system. The project hascontinued through 2021, and the plan is to initiate field tests of thecompany's unique biosensor in 2022. With the feedback from the field trials andour customers, we will finetune the functionality and finalize our plan on howwe will bring this unique solution to the market.
In 2022, we look forward to furthering our missionto redefine nature's potential through our new strategic direction, focusing onsustainable Smart data-driven farming, innovation, technology, and meaningfulpartnerships coupled with our commitment to delivering operational excellenceto our growers.
CEO Heliospectra AB
For More Information:
Rebecca Nordin, Head of IR at Heliospectra | +46(0)72 536 8116 | firstname.lastname@example.org
Thisinformation is such which Heliospectra AB (publ) is obliged to make publicpursuant to the EU Market Abuse Regulation. The information was submitted forpublication, through the agency of the contact person set out above, at 08:40 CET, Februaryr 25th, 2022.
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, please visit https://www.heliospectra.com.
Company HELIO is listed at Nasdaq First North Growth Marketwith Redeye AB as Certified Adviser:
Certifiedadviser@redeye.se,+46 (0)8 121 576 90.