Interim report Pricer AB January-June 2018
Record high order intake, increased net sales, operating margin and cash flow
Second quarter 2018
- Net sales of SEK 222.0 M (206.7), an increase of 7 percent compared to the same period of last year
- Operating profit of SEK 20.1 M (11.0), corresponding to an operating margin of 9.0 percent (5.3)
- Order intake of SEK 520 M (218), an increase of 139 percent compared to the same period of last year
- The order backlog increased to SEK 445 M (114), most of which is expected to be invoiced before the end of 2018
- Profit for the period amounted to SEK 28.4 M (7.7)
- Earnings per share amounted to SEK 0.26 (0.07)
- Cash flow from operating activities was SEK 51.5 M (-38.2)
First half of the year 2018
- Net sales of SEK 402.0 M (381.0), an increase of 6 percent compared to the same period of last year
- Operating profit of SEK 29.1 M (18.3), corresponding to an operating margin of 7.2 percent (4.8)
- Order intake of SEK 708 M (406), an increase of 74 percent compared to the same period of last year
- Profit for the period amounted to SEK 34.2 M (11.8)
- Earnings per share amounted to SEK 0.31 (0.11)
- Cash flow from operating activities was SEK 78.3 M (-42.7)
Comments from Acting CEO Helena Holmgren
Order intake for the quarter of SEK 520 M is the highest-ever for Pricer in a single quarter. In addition to a major investment decision from the American retail chain Best Buy, order intake is a result of continued strong demand in several markets including France, Norway, Belgium and Italy. This development is in line with the increased activity we have experienced in the market over a long period. It is the result of our superior solution and the investments we make in the ability of the Pricer system to address store processes beyond price updates, something that meets the challenges facing retailers.
Sales for the quarter totaled SEK 222 M corresponding to growth of 7 percent compared with the second quarter last year. The high order intake in the second quarter only had a marginal impact on sales for the quarter, instead building up the order backlog for the coming quarters. Delivery dates are dictated by both the customer’s schedule for the store installation and Pricer’s delivery lead times which to some extent are volume dependent. Scalability in our supply chain is high, but large volume increases require some ramping period in order to meet component supply.
The order backlog of SEK 445 M is mostly planned for delivery and invoicing before the end of the current year. This means that production and delivery activity will be high during the third and fourth quarters with related temporary increase in tied up capital. Against the background of sales fluctuations between quarters due to major delivery projects, cash flow from operating activities should primarily be analyzed over time rather than for individual quarters.
It is gratifying to note that operating profit and operating margin also improved in the second quarter compared with the corresponding period in the previous year. Sales growth, an increase of gross margin and control of costs led to this improvement. In the coming quarters we expect pressure on the gross margin due to the mix in order backlog combined with higher prices for some off-the-shelf components following a recent sharp increase in demand for these components from several different industry verticals.
Our continual focus on product innovation to broaden our offering and thereby increase the system’s value for customers as well as end consumers permeates our entire operations and is one of the company’s main success factors. To meet rising demand, during the second quarter we built up our presence in several markets, including North America, an initiative that we intend to continue as we see an increase in the need for retail automation.
We have enjoyed a good start to the year and the high order backlog at the end of the quarter means that we can look forward to a continued strong 2018!
For further information, please contact:
Helena Holmgren, acting CEO, 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 person set out above, on July 20, 2018 at 08:30 CET.