Interim report Pricer AB January-March 2018

Improved net sales, operating margin and cash flow

First quarter 2018

  • Net sales of SEK 180.0 M (174.2), an increase of 3 percent compared to the same period of last year 
  • Operating profit of SEK 9.0 M (7.2), corresponding to an operating margin of 5.0 percent (4.2) 
  • Order intake of SEK 189 M (189), in parity to the same period last year 
  • The order backlog increased to SEK 143 M (103), most of which is expected to be invoiced in the next quarter 
  • Profit for the period amounted to SEK 5.8 M (4.0) 
  • Earnings per share amounted to SEK 0.05 (0.04) 
  • Cash flow from operating activities was SEK 26.8 M (-4.5)
       

Comments from acting CEO Helena Holmgren

Sales growth for the first quarter of 2018 was 3 percent compared to the corresponding period last year. Order intake in the first quarter was at the same level as in the first quarter of 2017 and is divided among a large flow of small orders from several customers, primarily in France, Italy and Norway. As a result, the order backlog increased during the quarter and amounted to SEK 143 M at March 31, compared to SEK 103 M on the same date last year. As mentioned previously, the timing of deliveries and invoice terms affect the allocation of sales between the quarters.

The operating profit of SEK 9.0 M (7.2) was an improvement compared to the corresponding period in the last year. The product and contract mix has maintained gross margins at the same level as last year. This, combined with favorable currency conditions, contributed to improved profitability.

During the first quarter we continued to build up Pricer’s organization with the aim of further improving our customer offering. With a strong product management team responsible for the product portfolio and business development, we ensure that our long-term innovative strengths are maintained at the same time as we continue to be agile and sensitive to the needs of our customers and developments in our business environment. In dialog with several major customers we continuously develop new and improved solutions that further strengthen our offering and increase the system’s value creation for customers.

Pricer’s communications technology, which is unique in the industry and difficult to copy, allows the system to respond to a command in less than one second without affecting the battery life of the label. The system’s immediate response is part of basic functionality and applies to all communication with labels and under all conditions. To make a number of processes more efficient, such as shelf replenishment, this immediate response of the flash functionality is a precondition for the system to provide added value.

It is therefore with pleasure and confidence that I note that both automated product positioning and flash functionality with immediate response are increasingly in demand in retailers’ evaluations of ESL (Electronic Shelf Label) systems. In several markets, where North America has the greatest potential, we continue to invest in resources within sales and marketing in order to meet demand.
  

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 below, on April 26, 2018 at 08:30 CET.

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