Improved order intake, net sales and margin in fourth quarter
- Board proposes to double the dividend to 0.50 SEK per share
Fourth quarter 2016
- Net sales of SEK 188.0 M (178.2), an increase of 6 percent compared to the same period last year
- Operating profit of SEK 16.6 M (7.4) and profit for the period of SEK 18.0 M (7.9)
- Cash flow from operating activities was SEK 63.3 M (92.7)
- Order intake of SEK 180 M (108), an increase of 66 percent compared to the same period last year
- The backlog is approximately SEK 95 M (63), of which the majority is expected to be invoiced in the first quarter of 2017
Full year 2016
- Net sales of SEK 757.6 M (864.8), a decrease of 12 percent compared to the same period last year
- Operating profit of SEK 64.1 M (47.8) and profit for the period of SEK 57.3 M (37.0)
- Cash flow from operating activities was SEK 174.0 M (101.4)
- Order intake of SEK 783 M (792), a decrease of 1 percent compared to the same period last year
- The Board proposes to the Annual General Meeting a dividend of SEK 0.5 (0.25) per share for 2016
Subsequent events
- Andreas Renulf joined Pricer AB as President and CEO on January 9, 2017.
| Amounts in SEK M unless otherwise stated | Q 4 | Q 4 | Full year | Full year |
| 2016 | 2015 | 2016 | 2015 | |
| Order intake | 180 | 108 | 783 | 792 |
| Net sales* | 188,0 | 178,2 | 757,6 | 864,8 |
| Gross margin* | 29,3% | 25,5% | 28,1% | 21,8% |
| Operating profit | 16,6 | 7,4 | 64,1 | 47,8 |
| Operating margin | 8,8% | 4,2% | 8,5% | 5,5% |
| Cash flow from operating activities | 63,3 | 92,7 | 174,0 | 101,4 |
| Profit for the period | 18,0 | 7,9 | 57,3 | 37,0 |
| Earnings per share (SEK) | 0,16 | 0,07 | 0,52 | 0,34 |
* See Note 1 in the complete version of the year-end report.
Comments from CEO, Andreas Renulf
As I joined Pricer in January 2017, it is encouraging in my first report to note that Pricer finished the last quarter of 2016 with an order intake that was up by 66% over the same quarter of last year while sales were up by 6%. This resulted in an increased order backlog compared to 2015. Gross margin held steady at the third quarter’s high level throughout the fourth quarter, leading operating profit to more than double year-on-year for the same quarter.
Although net sales for the full year 2016 were lower than in 2015, operating margin for the full year improved to 8.5% (5.5%). Pricer’s cash flow increased further and our financial strength is demonstrated by net cash of more than SEK 260 M at the end of the year.
Order intake in the fourth quarter came mainly from Pricer’s established markets and existing customers that have increased the number of stores with Electronic Shelf Labelling (ESL) solutions. It is a strength that our order intake comes from many different customers. At the same time there were no large individual orders during the quarter. Sales during the quarter were attributable to France and Norway, of which Norway accounted for a higher share of sales than in earlier quarters.
Pricer thus has a strong position in its established markets and is now a financially stable and profitable company following focused efforts to optimize the logistics and production processes.
The challenge now is to improve the growth even outside the established markets. I and the management will devote all our energy to this task and I have reason to come back to what this will entail in terms of developing solutions, our market organization and potential acquisitions that could strengthen our position. Pricer has a solid operating and financial platform from which to move forward.
For further information, please contact:
Andreas Renulf, CEO, or Helena Holmgren, CFO, Pricer AB: +46 8 505 582 00.
This information is information that Pricer AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency by the contact persons set out above, at 8:30 CET on February 10, 2017.
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