• Net sales amounted to SEK 621.9 M (575.5), an increase of 8.1 percent compared to the same period last year.
• Of net sales, SEK 16.6 M (11.4) refers to recurring revenue.
• Gross margin amounted to 18.1 percent (16.6).
• Operating profit (EBIT) amounted to SEK 12.0 M (9.7), which corresponds to an operating margin of 1.9 percent (1.7).
• Order intake was SEK 523 M (546), a decrease of 4.2 percent compared to the same period last year.
• Order backlog amounted to SEK 534 M (538), of which the majority is expected to be delivered in Q4 2023.
• Profit for the period was SEK –8.9 M (4.4).
• Earnings per share (basic) were SEK –0.05 (0.04). Earnings per share (diluted) were SEK –0.05 (0.04).
• Cash flow from operating activities was SEK –83.0 M (23.3).
• Completed new share issue strengthens the balance sheet by approximately SEK 300 million before issue costs.
• Net sales amounted to SEK 1,880.6 M (1,571.7), an increase of 19.7 percent compared to the same period last year.
• Gross margin amounted to 16.6 percent (17.0).
• Operating profit (EBIT) amounted to SEK –4.7 M (–6.8), which corresponds to an operating margin of –0.3 percent (–0.4).
• Order intake was SEK 1,908 M (1,678), an increase of 13,7 percent compared to the same period last year.
• Profit for the period was SEK –51.8 M (–8.5).
• Earnings per share (basic) were SEK –0.38 (–0.08). Earnings per share (diluted) were SEK –0.38 (–0.08).
• Cash flow from operating activities was SEK –161.1 M (52.5).
Comments from President and CEO Magnus Larsson
The third quarter of the year shows increased sales, increased margins and new strategic contracts that are expected to generate good order intake for many quarters going forward at the same time as order intake during the quarter is lower than expected. This decrease is related to specific transactions and is not a general market trend, where we are noting, as previously, that customer interest and a willingness to invest remain at a high level.
Net sales for the quarter are SEK 622 M, which corresponds to an increase of 8.1 percent compared to the third quarter last year. France is posting a strong quarter that is not only driven by Carrefour but also a number of other chains in the retail and DIY trades. More good news is that Pricer’s deliveries in Eastern Europe are rising sharply.
Both net sales and order intake for the quarter are impacted by project delays at two of the company’s large customers, where none of the delays are due to a change in budget or changed investment plans. In addition to this, we are seeing in Scandinavia that macroeconomic uncertainty is currently having an impact on investments, but in the longer term there is still strong confidence in store digitalization investments.
Order intake amounted to SEK 523 M, which is just under last year’s third quarter and a decrease of 4.2 percent. Order intake comes from a large number of markets, where Italy, Latin America and Spain, among others, are growing rapidly compared to the third quarter last year. On the Spanish market, we are noting that our framework agreement with Carrefour combined with successful pilot installations in June has laid the basis for the orders we have now received for delivery before the end of the year.
In September, Finnish S Group chose Pricer to be its digital label systems vendor with an ambition to equip 300 stores with Pricer Plaza and digital labels in the next few years. Installation will roll out in seventeen stores already in 2023. US-based Associated Food Stores showed its confidence in Pricer when it announced in July that it had chosen Pricer as its preferred vendor. We are naturally proud of the contracts and partnerships with these leading retailers, which, through strict requirements, have developed a digitalization solution for their members.
The gross margin increased to 18.1 percent compared to 16.6 percent in the second quarter, which is a clear improvement and in line with previous communication. The improvement is a result of reduced component costs and targeted efforts to improve the company’s margins by, in part, negotiating prices with both suppliers and customers. We see continued improvement in our margins in the short term and the longer term, and improvement work within a number of different areas is ongoing.
Operating profit improved and amounted to SEK 12 M compared to SEK –2.8 M in the third quarter and SEK 9.7 M in the corresponding quarter in 2022. We are continuing to work actively to balance our operating costs and during the quarter initiated a project that aims to reduce our operating costs with minimal impact on planned growth and thereby our ability to develop, produce, sell and deliver.
Four-color labels and Digital Signage are still generating great interest, resulting in increased order intake and new customers. In line with this, a large European retail chain recently informed its franchises that it recommends four-color labels as the chain's first choice, which benefits Pricer since we are the leading alternative on the market in this segment.
Finally, the previously announced rights issue was completed in August, and Pricer thus received a capital contribution of SEK 257 M. I would like to thank everyone who participated in the issue for your confidence and investment in Pricer. We have strong customer relationships, fantastic employees, and a strong offer in a growing market. Our vision to be retail’s first choice in in-store digitalization is an important part of our continued success, and now, thanks to an improved cash position, we have every reason to be optimistic about the future.
President and CEO
For further information, please contact:
Magnus Larsson, President and CEO, +46 704 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 26, 2023.
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 30 years 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