Retail

Shekel Brainweigh reports 3% revenue drop in 2020

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February 26, 2021

Shekel Brainweigh Ltd., an Israel-based weighing technology provider that has introduced AI-powered self-checkout technology for retailers, reported a 3% revenue decline from $18.8 million in 2019 to $18.3 million for the 12 months ending Dec. 31, 2020, as well as a net loss after tax of $4.5 million compared to a loss of $3.3 million in the previous 12-month period, according to a press release.

"Shekel continued to operate its business profitably posting a gross profit of $7 million as well as launching new products in both divisions and winning new clients in new sectors," Arik Schor, chairman and CEO, said in the release. "Pleasingly, the retail innovation division has started to generate revenue."

The company's micro market capsule, "Black Box," launched in France, Schor said, and the second generation of micro coolers and "hubz," a joint product with Parlevel Systems, a U.S. based vending software provider, and Imbera Cooling launched in the U.S.

In the retail market, the demand for self-checkout technology fell by 10% due to a change in the ordering policy of one of the company's OEM customers. There was also a 6% increase in sales in medical OEM markets in the U.S. and Europe.

The impact of COVID on hospitals and medical centers reduced the demand for medical devices across the company's Healthweigh product line by 45%. This was partially offset by higher sales in the Israeli market across all segments.

In the healthcare market, orders for the company's proprietary incubator sensor weighing technology rose by 6% following increased orders from Atom and GE Healthcare.

While COVID disrupted the distribution of HealthWeigh products, healthcare orders rebounded in the second half, mainly due to a return of distributor activity.

For an update on how the coronavirus pandemic is affecting convenience services, click here.