ALPHA MOS: 2022: technological and commercial development – Outlook for 2023: acceleration of growth – 2023/03/14 at 6:00 pm

Alpha MOS announces its 2022 annual turnover which stands at €5.8 million, up 4% compared to the published 2021 figure

5,570

• The Group made a correction to revenue, inventories and financial fixed assets at the beginning of the financial year ended December 31, 2021. This correction corresponds to the restatement of lease contracts in accordance with IFRS accounting standards. The 2021 turnover thus corrected stands at €5,699k against €5,570k initially published. In accordance with IAS 8, the adjustment following a correction of an error must be accounted for retrospectively as if the error had not occurred, i.e. by correcting the recognition, measurement as well as the information presented in the appendix (IAS 8-42 and 43).

• In fiscal 2022, instrument sales represented 74% of total revenue and service sales 26%. The Heracles electronic nose represents the majority (72%) of instrument sales. Globally, income breaks down as follows:

• US: 24% of annual turnover;

• EMEA: 30% of annual revenue;

Japan: 15% of annual turnover;

Asia Pacific: 31% of annual turnover.

The publication of the complete 2022 annual results of Alpha MOS will take place on April 28, 2023.

Strong acceleration of growth in H2 22:

After a first half marked by successive confinements in China and by a slowdown in investments linked to the war in Ukraine and inflation of raw materials, the second half saw the return of strong growth with revenue up by more than 40% compared to H1 22 and 30% compared to H2 21 published

.

Asia is once again becoming an engine of growth:

• By focusing its commercial activity on South East Asia in the first half of the year, then by accelerating strongly in China as soon as the confinements ended, Alpha MOS generated a significant increase in its revenue in the Asia region in 2022, supported by a marketing strategy agressive. The company recorded its first successes in the Philippines, and made significant progress in acquiring key accounts in China.

• A commercial dynamic based on 3 pillars:

• In 2022, Alpha MOS focused its commercial strategy on three major projects:
  

Growth of existing customer accounts (upselling) with repeat orders for sensory analysis instruments and services. This initiative accounted for 24% of instrument order intake in 2022, and contributed to the 19% growth in service order intake compared to 2021. The service offering has been expanded to include upgrade contracts provision of instruments with on-site or remote technical support.

The acquisition of new key accounts, with, for example, the signature of a framework contract for the equipment of electronic noses for a Chinese group that is the world leader in dairy products. HERACLES electronic noses are used to check the quality of milk from different producers, upon receipt in the Chinese group’s processing and packaging plants, the objective being to potentially equip more than 30 sites with one or more 3 years here. As of December 31, 2022, Alpha MOS solutions are present in 31 of the top 100 global agrifood groups.

• Deployment in production sites. Alpha MOS works with a world leader in non-alcoholic beverages to validate its HERACLES electronic noses for the quality control of finished products. The Alpha MOS solution is positioned as a complement to its client’s panels of testers. Alpha MOS’ artificial intelligence instruments and tools increase the human factor in the food production chain, and will allow its client to significantly increase its testing capacities.

• Commercial developments focused on promising markets:

• In addition to continuous investments in the technological development of hardware and software, the company has focused on the launch of new applications focused on high added value segments of the food industry. These applications are developed in partnership with major players in the industry and could open up significant commercial opportunities.

Detection of “cork taint”, an organoleptic defect that generates millions of euros in losses every year for the alcoholic beverages segment, but also for all the fresh/processed fruit industries.

Labeling of extra virgin olive oil, and in particular detection of organoleptic defects and fraud according to the criteria of the International Olive Oil Council. This solution could open up to Alpha MOS the market of olive oil producers as well as large distribution networks and analysis and control laboratories in Europe and the United States.

Development of an electronic nose device for exporters of fresh milk, which will allow real-time monitoring of the quality of raw milk during its transport in maritime containers over long distances.

Solid logistics performance that contributes to a high customer satisfaction rate:

Thanks to solid operating processes and continuous anticipation of supply tensions for electronic components, delivery times have been maintained at a good level in 2022: 30 days on average for a HERACLES electronic nose.

This operational performance contributes to the high satisfaction rate of the company’s customers. 90% of instrument customers and 91% of service users say they are satisfied or very satisfied (study carried out in the 3rd and 4th quarters of 2022).

Alpha MOS is in a position to absorb strong commercial growth in 2023 while maintaining the level of its operational performance.

Alpha MOS’ MedTech subsidiary, BOYDSense, was recognized for its technological advancements in the diabetes segment:

MedTech activity continued at a high pace with the continued development of a prototype non-invasive breath blood glucose sensor. A first tranche of €1.3 million in European funding was received in July 2022.

The clinical test campaign launched in partnership with the Toulouse University Hospital has been extended in order to accelerate the development of the calculation algorithm.

• In November 2022, the technology and the progress of the project were also rewarded by the expert jury of the DCB Open Innovation Challenge in the category “diabetes devices”. A total of 70 companies from 22 countries competed in this annual event.

• 2023: acceleration of growth

• For its Foodtech activity, Alpha MOS wants to maintain its growth momentum:

• Pursue its strategy of deploying instruments in the production sites of major agro-food manufacturers;

Support rapid and profitable growth by developing the recurring services sales model;

• Launch specific hardware and service offers in high value-added market segments;

• Maintain a double-digit growth rate and a very high customer satisfaction rate.

On the Medtech side, Alpha MOS wants:

Intensify the algorithm development work thanks to the conclusions of the clinical test campaign.

Continue to actively seek specialized investors who can support the development of the company.

About Alpha MOS

Alpha MOS (Euronext Paris, ISIN: FR0013421286 ALM, Mnemonic code: ALNEO) specialist in sensory analysis solutions, is the world leader in the manufacture of electronic noses, tongues and eyes for industrial use. Founded in 1993, Alpha MOS is an international company established in France, China and the United States. It has installed more than 1,300 instruments throughout the world, spread over the food-processing sectors, the beverage and packaging industries mainly. Alpha MOS continually invests in research and development to meet market needs and innovates to develop consumer sensory analysis markets.?

– Information on annual turnover

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