Heliospectra (publ) Half Year Report January-June 2021

GOTHENBURG, Sweden, Aug. 20, 2021 /PRNewswire/ -- Heliospectra AB (publ) (Nasdaq First North Growth Market: HELIO), a world leader in intelligent lighting technology for greenhouse and controlled plant growth environments, presents its' Half Year Report for January-June 2021. 

Full report 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 during the period April - June amounted to SEK -61,492 thousand. This figure includes the order cancellation from Nectar Farms, Australia, which was announced in April 2021. Excluding this cancellation, order intake during the period amounted to SEK 10,171 (1,717) thousand. For the period January - June, the corresponding figure is SEK 22,706 (4,181) thousand.

Net sales during the period April - June amounted to SEK 8,768 (4,674) thousand and operating profit amounted to SEK -9,230 (-13,185) thousand, implying a negative operating margin (negative). Profit after tax was SEK -9,230 (-13,137) thousand. For the period January - June, net sales amounted to SEK 18,728 (19,874) thousand and operating profit amounted to SEK -16,532 (-22,242) thousand, implying a negative 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 from investment activities mostly refers to capitalized work for own account in the form of product development.

CEO COMMENT

Dear Heliospectra AB (publ) Shareholder,

Despite experiencing many of the same COVID driven challenges that most global industries have endured – such as supply chain issues, delayed investments, and economic uncertainty – we have made measurable progress during the first half-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 for the half year drop by 6% compared to same period last year. The operating cost has been adjusted to cope with our current market situation which resulted in improving EBITDA by 27,7% compared to the previous year. We have also made great strides in productizing our patented biosensor technology and we are increasingly optimistic of our development of this revolutionary solution.

The Nectar Farms order cancellation was another byproduct of the uncontrollable circumstances created by COVID. Unfortunately, the customer was unable to raise an adequate level of funding in time. Although this was a bitter pill to swallow, our organization should feel proud that such a big client chose Heliospectra LED grow lights above all else after nearly three years of vigorous product and competitive analysis.

Looking ahead, we are excited about nearing the commercialization of our patented biosensor technology. This is a game changer that will not only improve our position in this space, but also solidify our reputation as a technologically innovative company. The patented biosensor technology will revolutionize the CEA (controlled environment agriculture) industry by allowing growers to communicate with their crops and dynamically adjust production requirements. For example, this technology will alert growers to the type of light the crop needs at different stages of its growth.  By being able to respond to the crop's needs in "real time", growers will be able to cultivate higher quality crops at a faster rate with much less crop waste and thus significantly increase their profit.  We have already passed the functional validation of our solution and fielded a significant amount of commercial and research interest. As such, we will continue to focus on finalizing this product and bringing it to market early next year. 

In parallel, we are also working hard to optimize our product offerings and expand our global presence in the marketplace. We are working on a comprehensive solution that combines our industry leading light fixtures with our control platform and biosensor technology. By offering this packaged solution we hope to further support and meet the expanding needs of both our existing and future customers. We have also been focused on expanding our global presence by strengthening our sales channels. Heliospectra has partnered with two new resellers. MineARC Systems, a global leader in manufacturing and supply of controlled environments, will represent Heliospectra's products and solutions in the Australian market. Harahara Inc., a long-term supplier of cultivation solutions, will be doing the same for the controlled environment agriculture and PFALs markets in Japan. We will continue to expand our reseller network in the 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 by providing an integrated solution that focuses on crop and production yield. As LED lights are increasingly viewed as a commodity, we will differentiate ourselves and our products by focusing on practical innovations that will help define the future of lighting in horticulture and bring value to our customers. In support of these goals, we will continuously review our strategy to ensure we have the right balance between our commercial practices and R&D. 

Additionally, as we continue to battle extraordinary societal and marketplace challenges, we will maintain great relationships with our existing customers to ensure we are ready to accept and deliver their delayed, but forthcoming, orders as well as provide a clear path to introducing our new, state-of-the-art biosensor technology solution.

Thank you for your continued support and we look forward to regularly updating you on our progress for the remainder of year.

Ali Ahmadian, 
President & CEO 

For More Information:

Rebecca Nordin, Head of IR at Heliospectra | +46 (0)72 536 8116 | [email protected]

http://www.heliospectra.com

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SOURCE Heliospectra