Interim Report 01/01/2019 – 31/03/2019

Summary of quarter Q1 2019

The following summary refers to the period 01/01/2019 – 31/03/2019, 
compared to 01/01/2018 – 31/03/2018

  • Net sales for this period totaled to SEK 333,620 (SEK 0) 
  • Operating result for the period of SEK -1,980,615 (SEK -2,192,873)
  • Cash and bank balance SEK 3,701,727 (SEK 13,605,765)
  • Capitalized development costs of SEK 338,053 (SEK 404,996)
  • Average number of registered shares 9,877,264 (9,877,264 shares)
  • Result per share* SEK –0.20 (SEK -0.22)
  • Equity Ratio 74.8% (93.8%)

*Result per share is calculated on the average number of registered shares during the period.

CEO comments

The quarter that has been a major breakthrough for OptiFreeze!

In 2017 OptiFreeze established a strategy to focus mainly on the OptiFlower segment during the year of 2018. Now we see the results of the strategy. The first result of this strategy is that we have signed an extensive agreement with Syngenta Flowers. The second result of the strategy is that we have delivered our first complete system to Kenya Cuttings, Syngenta Flowers. The above result means that OptiFreeze has taken the strategic and important step from Research and Development phase to commercial phase. 

Syngenta Agreement

On February 19, OptiFreeze announced that the company signed a collaboration agreement with Syngenta Flowers, one of the world’s leading flower companies. The announcement was perceived as big and good news both in Sweden and in the flower industry globally. 

OptiFreeze and Syngenta Flowers have agreed not to apply any exclusivity to Syngenta, meaning that OptiFreeze is free to market the technology to anyone. According to the agreement, the business model is built on royalties per treated plant. This is a common way to work in the industry and Syngenta’s experience in this field will be crucial and will have a strong impact on OptiFreeze’s future expansion. The market for flower cuttings is huge, more than 2.5 billion flower cuttings are being produced every year.

Syngenta Flower is a leading global company in the pot- and bedding plants market. They produce seeds, cuttings and young plants that fulfil growers’ and retailers’ needs. Our collaboration with Syngenta covers all the treatments of the input material for instance cuttings, cut flowers, young plants and seeds.

First OptiCeptTMdelivery - to Kenya

We completed the full OptiCeptTM system for Syngenta Flowers within a four months period and had the system ready for shipment in the middle of January. Extensive paperwork and custom clearance in Kenya unfortunately delayed the shipment until the end of February. It feels good that the first OptiCeptTM processing system now is on site in Nairobi, since the beginning of May, at Kenya Cuttings!

Updated financial targets

By the end of March 2019, the board of OptiFreeze announced that the financial targets of the company had been updated as a result of the collaboration agreement with Syngenta Flowers.

The updated financial targets decided by the board are:

  • Five-year annual revenue growthrate is expected to exceed 150%in average
  • The gross margin(including both machinery sales and royalties) is expected to exceed 65%within five years
  • The company is expected to be cash flow positive during 2020.

Focus areas – OptiFlower, OptiDry and OptiFresh

We will have continued focus on the OptiFlower segment during 2019 with the aim of increasing sales and expanding the product portfolio. We are currently working on producing new recipes for new products at the same time as we are beginning the method development for cut flowers which is very exciting. The installation and trials at Kenya Cuttings will also take some focusing and work. 

OptiFreeze is taking cautious steps in the OptiDry segment. During last year’s trials we observed that the customers within the OptiDry segment have a need for very high capacity. Due to this the PEF system needs to be upscaled to catch up with industrial standard capacities. The customers in this segment is also quite conservative and it takes significantly longer time for them to understand the full potential of the OptiFreeze application. Therefore, OptiFreeze will produce a new PEF chamber with an increased capacity that better fit the OptiDry customers and their wishes.

We have also decided to focus on the OptiFresh segment during 2019. After communicating with the European authorities and the Swedish Livsmedelsverket regarding the natural additives that we use in the process, we have learnt that the treatment is allowed to use in the fruits and vegetables industry. We will continue our communication with Livsmedelsverket in order to be able to help and assist potential customers with questions related to legislations and rules in food. 

Financial situation

During 2019 OptiFreeze will continue the transition from a company focusing on commercialisation to a company focusing on sales. This will take some hard work and financing of the business. OptiFreeze is currently investigating different ways to ensure that the company has sufficient funds to stand strong when entering the next phase. With the collaboration agreement with Syngenta Flowers in place, OptiFreeze has the conditions needed to do so. OptiFreeze has a moderate burn rate and there are no dramatic changes in the burn rate over the next quarters. After the end of first quarter 2019, OptiFreeze has received the remaining payment from Syngenta Flowers for OptiCeptTMsystem which has had a positive impact on our financial situation. 

Together with our partner Syngenta Flowers, we will work on making the OptiCeptTMline a standard processing step in the flower industry. Other than that, I believe that 2019 will be the year of transition for OptiFreeze. From focusing on commercialization to sales! 


I am proud of our work and that we as a company has been able to land such a large and great contract! I am convinced that when we look back in the future, we will comment that this was the turning point for us. It is with great enthusiasm, and big expectations that we continue our work. 

his information is such information as OptiFreeze AB (publ) is obliged to disclose under the EU Market Abuse Regulation.
The information was provided, through the contact of the following contact person, for publication on May 23rd, 2019.

Lund, May 23, 2019

Eda Demir Westman, CEO 


Documents & Links