- Shekel Brainweigh (SBW) reports a record 26 per cent year-on-year increase in revenue for the 2021 calendar year, however saw a net loss of US$6.4 million (A$8.9 million)
- For the year ending December 21, 2021, the company noted a shortage in electronic devices which it says drove cost increases for raw materials and slowed manufacturing
- A high percentage of its workforce were impacted by the Omicron outbreak, however SBW says it was able to carry-on with operations with no significant on performance
- Shekel attributes the net loss to one-off financial expenses from accounting rules, a loan revaluation and exchange rate differences
- Shares have ended the day 3.02 per cent lower at 16 cents
Shekel Brainweigh (SBW) has announced a 26 per cent year-on-year increase in revenue across 2021, however saw a net loss of US$6.4 million (A$8.9 million).
For the full year ending December 31, 2021, the weighing technology firm and artificial
intelligence innovator booked a record group revenue result of US$23.1 million (A$32.1 million) up from the 2020 result of US$18.3 million (A$25.49 million).
Shekel’s scales business division which provides weighing solutions to the retail, industrial and healthcare markets made up most of the revenue, bringing in US$22.2 million (A$30.9 million).
Meanwhile, the company’s retail innovation division, which is a new technology venture delivering artificial intelligence based solutions for the retail micro market segment, saw a staggering 244 per cent growth in revenue to US$921,000 (A$1.28 million).
While the market looked towards more “contactless” shopping experiences as COVID-19 continued to overwhelm the retail sector, Shekel struggled with increased costs for raw materials as well as reduced manufacturing.
The company said it was required to increase prices to maintain its margins and sought alternative microchips to open additional procurement channels to ensure it could meet growing demand.
Shekel reported its workforce was impacted by the Omicron outbreak with a high rate of employees infected. However, it said it managed to maintain operations with no significant impact on the deliverables or performance of the company.
At the end of the period, SBW’s gross profit sat at US$9.03 million (A$12.58 million), marking an almost 30 per cent increase on the 2020 result of US$6.97 million (A$9.7 million).
Due to cash expenses including fundraising costs and non-cash expenses such as impairment of an intangible asset and granting restricted share units to employees, the company’s operating loss was US$4.07 million (A$5.6 million), an increase of US$343,000 (A$477,849) from the prior period.
Net loss also grew to US$6.46 million (A$8.9 million), up from US$4.45 million (A$6.19 million) which Shekel attributes to one-off financial expenses from accounting rules, a loan revaluation and exchange rate differences.
Shekel Brainweigh ended the period with US$1.9 million (A$2.6 million) in cash and equivalents.
Shares were trading 3.02 per cent lower at market close to end the day off at 16 cents.