Freemelt (FREEM) Q4 2021 earnings summary

Executive summary

• 2021 marked the transition to a listed commercial operation, with Freemelt ONE sales and development launched for an industrial electron-beam system; consolidated reporting covers 17 June–31 December following formation of the group.

• Pandemic disruption limited deliveries to one Freemelt ONE system for the year, but market activity and orders strengthened in Q4 and continued into 2022.

Financial highlights

• Consolidated net sales were SEK 302k for 17 June–31 December; capitalized own work was SEK 7.501m and other operating income SEK 697k.

• Operating loss was SEK 26.899m and net loss SEK 23.972m; income tax benefit was SEK 3.020m, including deferred tax benefit of SEK 3.022m.

• Cash and cash equivalents ended at SEK 56.904m; total assets were SEK 335.381m and equity SEK 325.067m.

• Operating cash flow was negative SEK 18.030m and investing cash flow negative SEK 8.151m; financing cash flow was positive SEK 83.035m.

Outlook and guidance

• Freemelt ONE sales accelerated from late 2021 into 2022, with a sales pace of ~1 system/month and three initial US orders alongside continued European sales.

• Two Freemelt ONE orders received in Q4 were scheduled for delivery in early 2022; subsequent orders and deliveries to Europe and the US followed plan after year-end.

• Industrial-system target markets include titanium orthopedic implants, copper products for e-mobility, and tungsten products for medical technology and energy production.

• Linköping production operations planned to move into permanent, production-optimized premises in spring 2022; sales expansion includes more agents and resellers in North America and Europe.