Interim report for the third quarter of 2021:

Year-to-date revenue up 8 %, pipeline still growing, particularly within Vertical Farming

Today, LED iBond International’s (LED iBond) Board of Directors approved the interim report for the third quarter (Q3) of 2021. Highlights of the report include:

Business development

• Overall, new business opportunities are continually identified and validated, in particular within vertical farming, where the sales pipeline is constantly growing, and the first installations have been successfully delivered.

However, the COVID-19 pandemic and the global shortage of electronic components are slowing down execution and revenue generation.

• Vertical farming: In a test facility, LED iBond firmly demonstrated during Q3 that its vertical farming solution provides best-in-class lighting coverage of lettuce and other microgreen cultures, securing consistent production yields and optimal growth control. In parallel, the company increased the volume of pending offers for international vertical farming projects with expected delivery in 2022.
• Smart buildings: In Q3, LED iBond continued to develop its business relationship with Nobia. Under the collaboration with Bluetop Solar Parking ApS, LED iBond also received orders for lighting equipment for the first three charging stations of Gridserve’s “Electric Highway” in Britain. In the gas station segment, the widespread lack of third-party installers is slowing down the completion of orders.

During the quarter, LED iBond welcomed B2, a leading Korean lighting management and architectural lighting company, as distribution partner in Korea. Using Tracy® and The Plane®, B2 has developed a range of innovative lighting solutions which are now being introduced to the Korean market.

• Technology: In cooperation with sub-suppliers and potential customers, LED iBonds is preparing three demo-cases under the Energy Technology Development and Demonstration Program (EUDP), managed by the Danish Energy Agency. The demo-cases will showcase the benefits of integrating novel IoT sensor components and the Tracy concept.
• Business conditions: LED iBond’s commercial development is still impacted by the COVID-19 pandemic as travel restrictions limit sales activities. In addition, the global supply chain squeeze, especially within logistics and electronics components, including speciality LEDs, can potentially cause delays in LED iBond’s product deliveries.

Financial development

• In Q3, LED iBond generated revenues of TDKK 713, a drop of TDKK 1,551 or 69 % relative to Q3 of 2020, where revenues included sales to spin-offs of TDKK 1,695. Excluding revenue from spin-offs, LED iBonds core business delivered a year-over-year revenue increase in Q3 of 25 %.
• EBIT for Q3 amounted to a loss of TDKK 3,436, a deterioration of 24 % relative to the previous Q3, mainly caused by one-off expenses and depreciations. For Q1-Q3, EBIT came to a loss of TDKK 14,797 against a loss of TDKK 13,433 in Q1-Q3 of 2020, an increase of TDKK 1,364, mainly driven by higher staff cost and depreciations.
• The result before tax for Q3 was a loss of TDKK 3,594 against TDKK 2,903 in Q3 of 2020, the difference to be explained by higher staff cost and higher depreciations. The Q1-Q3 result before tax was a loss of TDKK 15,846 against a loss of TDKK 17,586 in Q1-Q3 of the year before.
• The total cash flow for Q3 shows an outflow of TDKK 10,940, against an outflow of TDKK 4,363 in Q3 of 2020. The total cash flow for Q1-Q3 of 2021 shows an inflow of TDKK 22,223 against a total inflow of TDKK 9,053 in the year-earlier Q1-Q3. The increased inflow is mainly explained by the capital raise in April 2021.
• On 30 September 2021, the company’s equity amounted to TDKK 80,216 against TDKK 44,193 at 31 December 2020, and net cash amounted to TDKK 32,084, compared to TDKK 9,861 on 31 December 2020.

Financial key figures for Q3 and the first 9 months of 2021

The full interim financial report for the third quarter of 2021 is available here:
https://ledibond.com/wp-content/uploads/2021/11/LED-iBond-International-Interim-Report-Q3-2021.pdf