AGTIRA AB In line with its ambitious growth plan,
Increasing production by 65% with new Greenfood deal
The LOI signed with Greenfood in 2022 covered up to 10 Greens systems, of which two have now started to take shape. One Greens system will be constructed in connection to ICA Maxi Haninge, whereas the recently announced cucumber deal refers to a system using excess heat from a server hall in Boden, which should strengthen the environmental profile even further. The larger size of the Greens-system in Boden will also mean an increase of Agtira’s production capacity by 65%.
While we still miss some of the pieces to fully incorporate this into our model, such as location and permits that have yet to be sorted out, we are encouraged by the forward movement from LOI towards establishing systems. The deal confirms Agtira’s Farming-as-a-Service business model as an attractive setup for major grocery companies.
The growing importance of food tech
Food tech continues to rise on the agenda world-wide, as evidenced by a recent article by the
With a continued supportive macro backdrop in favour of smarter agricultural solutions, food tech companies offering solutions for a more streamlined farming, like
Positive news flow to drive revaluation
In our valuation approach we have assumed a fixed contribution per InStore, Greens and Complete system, based on a pre-decided size and production capacity. But as the systems built under the Greenfood offtake deal will vary in size, we now find a higher degree of uncertainty in our forecast of 17 systems installed by 2024 translating to recurring revenues of
We now await more information about the Greenfood systems and maintain our fair value range intact at
Read the full report here https://www.emergers.se/agtira_m/
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