Shekel Brainweigh boosts revenue to US$13.1m as growth accelerates in Retail Innovation segment

Shekel Brainweigh SBW ASX revenue 2022
All sectors of Shekel Brainweigh’s business reported growth in H1 FY2022 compared to H1 FY2021.

Shekel Brainweigh (ASX: SBW) has boosted revenue for the half year ending June (H1 FY2022) by 23% to US$13.1 million (A$19.48 million) as growth in Retail Innovation segment accelerates.

This compares to the US$10.6 million (A$15.77 million) achieved in H1 FY2021.

Shekel chairman Arik Schor said the H1 FY2022 result was “really pleasing” and showed the progress the company had made despite COVID-19 challenges.

“All sectors of our business have reported growth compared to the same period in FY2021, with our Healthcare and Retail sectors posting strong double-digit revenue growth – underlining the innovation and technology that we provide and the depth and resilience of our business.”

Driving the growth was Shekel’s Healthcare segment which saw a 33% increase in revenue from US$4.1 million in H1 FY2021 to US$5.47 million in H1 FY2022.

The Retail division posted revenue of US$4.89 million, which was up 27% on the previous corresponding period.

Shekel general manager Nir Leshem said the company had achieved several “exciting and important” milestones during the period, which included delivering its technology to a variety of end-users and securing new major customers such as Atos.

Retail Innovation segment

Mr Leshem added the company was “especially excited” about the performance of its Retail Innovation division over H1 FY2022.

He said demand for the products within this division continues to increase each period and “bodes well for the future” of this side of the business.

In the Retail Innovation segment, growth was up 165% on H1 FY2021 levels.

Orders for the company’s smart fridges and autonomous stores rose from US$382,000 in H1 FY2021 to US$1.01 million in H1 FY2022.

Major highlights from this division were the opening of the first autonomous store Nourish + Bloom in the US, along with other stores in Germany and Israel.

The stores and smart fridges, include Shekel’s Product Aware Technology, which are essentially “smart shelves”.

Demand for the Hubz smart fridges picked up during the period, with an order for a further 40 units coming from Belgian.

Orders from the US have included more than 60 Hubz units, while a major retailer in the country has order two test units.

Meanwhile, Shekel also received its first major order for its Smart Cart application, with a strong indication a further order from another customer will come through.

Also in Belgium, the fourth largest IT integrator in the world Atos made its first purchase order for Shekel’s technology for an autonomous store in the country.

Other H1 FY2022 milestones

In Germany, GK Software is implementing Shekel’s Product Aware shelves to create GK Go contactless shopping.

Shekel noted several tier one retailers have expressed interest in a proof of concept of the store, with at least three retailers expected to place orders before the end of the year.

In Tel Aviv, a new autonomous store with Shekel’s technology is undergoing a soft launch.

And, back in the US, an order indication has been received for a second Nourish + Bloom autonomous store.

To fund its growth plans, Shekel raised $1.112 million at the start of the year and also has access to a US$3 million unsecured loan.

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