Interim report January–September 2022 – Pricer AB (publ)
High growth during the third quarter with an increase in order intake of 77.9% and net sales of 16.0%
· Net sales amounted to SEK 575.5 M (496.0), an increase of 16 percent compared to the same period last year.
· Of net sales, SEK 11.4 M (8.0) refers to recurring revenue, an increase of 42.4 percent compared to the same period last year.
· Operating profit amounted to SEK 9.7 M (40.1), which corresponds to an operating margin of 1.7 percent (8.1).
· Order intake was SEK 546 M (307), an increase of 78 percent compared to the same period last year.
· Order backlog amounted to SEK 538 M (396), of which the majority is expected to be delivered in 2022.
· Profit for the period was SEK 4.4 M (32.0).
· Earnings per share (basic and diluted) were SEK -0.04 (0.29).
· Cash flow from operating activities was SEK 23.3 M (-94.5).
· Net sales amounted to SEK 1,571.7 M (1,277.9), an increase of 23 percent compared to the same period last year.
· Of net sales, SEK 32.0 M (23.7) refers to recurring revenue, an increase of 34.9 percent compared to the same period last year.
· Operating profit amounted to SEK -6.8 M (80.1), which corresponds to an operating margin of -0.4 percent (6.3).
· Order intake was SEK 1,678 M (1,157), an increase of 45 percent compared to the same period last year.
· Profit for the period was SEK -8.5 M (64.9).
· Earnings per share (basic) were SEK -0.08 (0.59). Earnings per share (diluted) were SEK -0.08 (0.58).
· Cash flow from operating activities was SEK 52.5 M (-175,3).
Comments from acting CEO Magnus Larsson
The third quarter of the year showed a strong increase in order intake compared to the corresponding period in 2021. Order intake amounted to SEK 546 M, which corresponds to an increase of 78 percent. For the first nine months of the year, order intake thus totaled SEK 1,678 M, which means that we have already surpassed last year’s total order intake of SEK 1,610 M. Net sales amounted to SEK 576 M, which corresponds to an increase of 16 percent year on year. We are extremely pleased to note that our efforts to strengthen the sales organization, combined with underlying market trends, are generating clear results in line with our growth plans.
A continued high cost level on electronic components, raw materials and transports are putting pressure on profitability, but our efforts to implement profitability-enhancing measures and strict cost control have begun to generate results, and we have gone from a loss during the first six months of the year to a profit in the third quarter of the year. Operating profit for the quarter amounted to SEK 9.7 M compared to SEK -7 M in Q2 2022 and SEK 40 M in the corresponding period in 2021. Efforts to implement profitability-enhancing measures are being intensified, and we expect to see a continued positive impact in 2023.
Our goal is to grow faster than the market by marketing innovative and unique solutions within the automation of store shelves and in-store communication. For example, digital signage — digital advertisements in stores — creates entirely new business opportunities and thus increased revenue from store campaigns and advertisements. In the fourth quarter, we will launch an innovative solution that combines digital price labels and digital signage. The solution was very well received at its sneak premier in conjunction with Paris Retail Week in September.
The launch of four-color labels during the year creates entirely new possibilities for Pricer. Four-color labels make it possible to create more appealing and creative store campaigns, and many retailers have not wanted to invest in digital price labels until the four-color labels were available. We are seeing strong interest that has now generated a number of pilot installations with new, influential customers in the retail trade. During the quarter, we also won one of the market’s first large commercial store installations of four-color labels and started the pilot installation in the first store for a brand-new customer.
We are optimistic about the future. Our products and solutions enable communication and streamlining, which increases our customers’ sales, lowers their costs, and creates an improved customer experience in their stores. Pricer is working actively to contribute to strengthening the attraction of the physical store, which generates a clear customer benefit and satisfied customers. I look forward to following up with you in the future.
For further information, please contact:
Magnus Larsson, Acting CEO, +46704 316851
Susanna Zethelius, CFO, +46 704 440 092
This information is information that Pricer AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:30 CET on October 27, 2022.
Every care has been taken in the translation of this document. In the event of discrepancies, the Swedish original will supersede the English translation.
Pricer is a leading global technology company serving the rapidly growing smart retail market with in-store digital solutions that enhance both store performance and the shopping experience. Through electronic shelf labels, advanced technology, such as optical wireless communication and AI, and continuous innovation, Pricer offers the foundation for in-store communication and efficiency. The industry-leading Pricer platform delivers benefits from 30years of deployment experience and is fast, robust, interconnectable and scalable. Pricer was founded in Sweden in 1991 and is listed on Nasdaq Stockholm. For further information, please visit www.pricer.com.