Shekel Brainweigh continues growth momentum as Retail Innovation division increasingly adds to revenue mix

Shekel Brainweigh (ASX: SBW) has continued its growth momentum as its Retail Innovation division products continue to rapidly add to its revenue mix and demand accelerates globally.

The company revealed its revenue increased 23% in the six months ending June 2022 (H1 FY2022) to US$13.1 million – up from US$10.6 million in H1 FY2021.

Gross profit was also higher – rising 17% to US$4.7 million in H1 FY2022, compared to US$3.9 million in the previous corresponding period.

Contributing to the higher gross profit was a reduction in cash burn to US$1.7 million for the period. This equated to US$283,000 per month compared to US$403,000 per month in H1 FY2021.

“Our ability to deliver continued revenue growth demonstrates that our business is on the right path, and we are continuing to gain sales momentum,” Shekel general manager Nir Leshem said.

“This is particularly true for our Retail Innovation products, where demand is growing fast.”

He added the company also experienced “solid growth” across its other Healthcare and Industrial segments during the period.

“At the same time, we have achieved a significant decrease in our cash expenses despite the resources needed to achieve revenue growth and ongoing material and logistic price increases.”

Mr Leshem said the decrease in cash burn was a result of optimisation measures – resulting in a “more sustainable business in the long-term”.

Retail Innovation division

Product sales from Shekel’s Retail Innovation division rocketed 165% from US$382,000 in H1 FY2021 to US$1.01 million in H1 FY2022.

Propelling the growth was an increase in orders for the company’s smart fridges and autonomous stores.

Shekel chairman Arik Schor said the company was now beginning to reap the rewards for the investment in its Retail Innovation products.

In the US during H1 FY2022, Shekel received an order for more than 60 of its Hubz smart fridges, including an order for two test units from a major retailer in the country.

Also during the period, Shekel debuted its first US autonomous store at Nourish + Bloom and a second store is scheduled to be launched in the current half.

In Belgium, the company collared its first order from Atos for an autonomous store. Atos is the world’s fourth largest IT integrator.

Shekel continued participating in major exhibitions globally during H1 FY2022 to build recognition of its products.

As H2 FY2022 advances, Shekel will continue commercialising its Retail Innovation products, which it expects will also boost revenue.