OptiCept enters agreement with Cooperativa La Salud regarding two OliveCept systems

On Monday, April 8th, OptiCept announced that the company has entered into an agreement with a customer in Spain, Cooperativa La Salud, concerning two OliveCept systems. In order for the company to reach our estimates within the FoodTech segment for the current year, OptiCept needs to secure some additional 2-3 similar-sized agreements, but we view the news as positive.

The machines are planned to be installed in September

The total value of the agreement amounts to 0.3 MEUR (approximately 3.1 MSEK). It is not explicitly specified which machines are included, but judging by the sales price, which is lower than the company's previous listed price for a Balder (approximately SEK 3.2 million), we assume it refers to machines with lower capacity, possibly Odin or Thor. The machines are scheduled for installation before the upcoming season in September, contingent upon La Salud receiving EU grants.

An agreement of both economic and strategic nature

The olive oil industry is currently navigating challenging conditions characterized by poor harvests, climate change, and recession. Consequently, some producers in the industry have resorted to shortcuts to maximize extraction, albeit at the expense of quality. However, in this environment, we believe there should be a greater willingness among high-quality olive oil producers to embrace OptiCept's technology as a solution to these challenges, a sentiment that we believe is reflected in this order.

Furthermore, we recognize the strategic importance of introducing OptiCept's technology within a cooperative setting. We feel Cooperative structures, characterized by multiple companies with equal influence, offer good opportunities for scalability once the technology is successfully integrated. Moreover, by establishing the technology with a customer in Andalusia, a central hub for the world's olive oil production, OptiCept gains a valuable reference customer ahead of the upcoming olive season.

However, it is important to note that the contract is contingent upon La Salud receiving EU grants. Taking this into account, and that we have already factored in sales of OliveCept machines into our estimates, we make no changes to our estimates or recommendation at this point. Our current estimates include some 13 MSEK through new agreements within the FoodTech segment in 2024. The announced order supports our growth estimates, but in order for the company to reach these estimates OptiCept needs to secure 2-3 similar-sized orders, in addition to the agreements already in place (the FPS order in January 2024 and this recent one). It is important to note that our total revenue estimates for the year amount to 27 MSEK, including contributions from the PlantTech segment. Failure to meet our expectations within PlantTech would necessitate additional orders within FoodTech to achieve our full-year estimates.