Interim Report January - September 2012
Slowdown in order entry and net sales
Stable development of the result
- Pricer won the largest project ever in the market – The estimated value expected to exceed SEK 300 M over three to five years
- One of the world’s leading retailers selected Pricer’s graphic e-paper labels for its stores – Initial order value of SEK 20 M
- Makro (Walmart) South Africa is rolling out Pricer
- New outlook for 2012: Net sales are expected to be lower than and operating profit in line with 2011. The earlier outlook was for higher levels in 2012 than in 2011
Order entry: SEK 112 M (144)
Net sales: SEK 121.8 M (166.1)
Gross margin: 30.9 percent (32.1)
Operating profit: SEK 16.9 M (26.1)
Operating margin: 13.9 percent (15.7)
Net profit: SEK 13.6 M (26.6)
Cash flow: SEK -29.3 M (-45.3)
Basic earnings per share: SEK 0.12 (0.25)
January - September
Order entry: SEK 436 M (500)
Net sales: SEK 405.0 M (421.1)
Gross margin: 32.4 percent (32.5)
Operating profit: SEK 58.2 M (50.2)
Operating margin: 14.4 percent (11.9)
Net profit: SEK 51.6 M (47.8)
Cash flow: SEK 13.9 M (-23.8)
Basic earnings per share: SEK 0.47 (0.45)
Comments from the CEO Fredrik Berglund
We have had a stable development of the result during the year despite the weak growth in Europe. The operating profit for the first nine months has improved but in the meantime the economic climate has negatively impacted net sales.
During the third quarter we have continued to win significant deals. We secured the largest project ever in the market with an estimated value expected to exceed SEK 300 M. One of the world’s leading retailers selected Pricer’s graphic e-paper labels for its stores with an initial order value of SEK 20 M. Pricer has also been granted a limited roll-out project from the world’s largest retail chain Walmart-subsidiary Makro in South Africa, will install Pricer’s electronic shelf labels in all of its 16 wine- and liquor stores. This complements the significant breakthrough in the Nordic region during the second quarter, worth SEK 90 M, with a food retail chain installing the Pricer solution in all its stores.
Altogether, however, we note that the economic decline in the euro-area is leading to extended sales processes. It is also taking longer to execute the roll-out projects we have won. The Carrefour project, for example, was deferred in 2012. On the other hand we can state that we have not lost any major deals. Furthermore, we note a number of on-going significant pilot projects being a good indicator of future revenue.
The combined picture for the year is unclear relating to the economic slowdown in Europe. For 2012, net sales are expected to be lower than and operating profit in line with 2011.