Interim Report Pricer AB January – March 2016

Highest quarterly order intake and strengthened operating result

First quarter 2016

  • Net sales of SEK 155.4 M (142.9), an increase of 9 percent compared to last year
  • Operating profit of SEK 2.2 M (0.9) and profit for the period of SEK 1.1 M (1.3)
  • Cash flow from operating activities decreased to SEK 20.8 M (42.0)
  • Order intake of SEK 304 M (269), an increase of 13 percent compared to last year
  • The backlog[1] is approximately SEK 206 M (226), whereof the majority is expected to be invoiced in the second and third quarter of 2016
Amounts in SEK M unless otherwise stated Q1 2016
Q1 2015 FY 2015
Order intake 304 269 792
Net sales* 155.4 142.9 864.8
Gross margin* 25.4% 22.5% 21.8%
Operating profit
2.2 0.9 47.8
Operating margin 1.4% 0.6% 5.5%
Cash flow from operating activities 20.8 42.0 101.4
Profit for the period 1.1 1.3 37.0
Earnings per share (SEK) 0.01 0.01 0.34

* See Note 1 in the complete version of the interim report.
  

Comments from the CEO, Jonas Vestin
Pricer started 2016 with an order intake of over SEK 300 M, which is the highest ever for a single quarter. Net sales were up by 9% compared to the same quarter of last year and gross margin strengthened gradually for the third consecutive quarter. Operating profit also improved year-on-year and it is highly satisfying that despite dramatic fluctuations in sales between quarters, Pricer is able to report its fifth consecutive quarter with a positive operating result.

The high order intake is mainly attributable to major orders from French chains Carrefour in the grocery retail trade and Castorama in the DIY sector. Norwegian grocery retailers also contributed sizeable orders based on previously communicated contracts. Delivery of these orders will take place mainly in the second and third quarters. The French franchise sector showed a continued strong order intake in the first quarter and the new framework agreement that was signed with the leading French food grocer Système U underlines that this trend will carry into the coming quarter. In a longer perspective, this could reduce Pricer’s dependency on individual large projects.

In view of the high order intake and resulting strong order backlog at the end of the first quarter, we anticipate substantial delivery activity in the second quarter. The rollout of major projects has historically had a significant impact on the gross margin for individual quarters, but given the existing product and contract mix and the changes that have been made in logistics and supply chain, we expect more stable gross margin going forward.

The combined effects of price-based competition and new competitors entering the market are still being felt, but at the same time signals are that market growth is gaining momentum. With our advanced and difficult-to-copy technical platform, Pricer has a unique capacity to meet the needs of retailers that demand true automation and active pricing. Pricer is continuing to win business in the market where there are clear requirements on the solution’s speed, robustness and scalability, and in those contracts where the customer has an explicit digital strategy.
   

For further information, please contact:
Jonas Vestin, CEO, or Helena Holmgren, CFO, Pricer AB: +46 8 505 582 00.
    

In its capacity as issuer, Pricer AB publishes the information in this interim report in accordance with the Securities Markets Act (2007:528). The information was issued to the media for publication on Thursday, 28 April 2016 at 8:30 am CEST.

[1] The order backlog consists of binding orders and call-offs under frame agreements. Expected future value of frame agreements is not included.

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