Interim report January–March 2024 – Pricer AB
Largest order intake in Pricer's history
First quarter 2024
• Net sales amounted to SEK 670.3 M (571.4), an increase of 17.3 percent compared to the same period last year.
• Operating profit amounted to SEK 21.4 M (–13.9), which corresponds to an operating margin of 3.2 percent (–2.4).
• Operating profit before depreciation, amortization and impairment amounted to SEK 37.6 M (0.9).
• Order intake was SEK 972 M (707), an increase of 37.7 percent compared to the same period last year.
• Order backlog amounted to SEK 661 M (613), of which the majority is expected to be delivered in Q2 and Q3 2024.
• Profit for the period was SEK 15.1 M (–27.2).
• Earnings per share (basic) were SEK 0.09 (–0.25). Earnings per share (diluted) were SEK 0.09 (–0.25).
Comments from President and CEO Magnus Larsson
It is extremely gratifying to be able to report both positive operating profit and net profit for the first quarter of the year, good growth in net sales compared to last year's first quarter, and also the company's best order intake ever.
A number of large orders from both existing and new customers in several countries are behind the quarter's record-setting order intake of SEK 972 M, which is an increase of 37 percent compared to the corresponding quarter last year.
The quarter's net sales amounted to SEK 670 M, the highest ever for a first quarter and growth of 17 percent compared to the first quarter of 2023. The quarter's operating profit/loss amounts to SEK 21.4 M (3.2 percent) compared to the first quarter of 2023 when the operating profit/loss was SEK –13.9 M (–2.4 percent), and the quarter's net profit/loss amounts to SEK 15.1 M compared to SEK –27.2 M last year's corresponding quarter. The profitability improvements come after a solid focus on reducing operating costs in combination with a series of measures that have been implemented over a longer period of time to increase our gross margin, which was 19.1 percent compared to 15.8 percent in the corresponding quarter last year.
The UK is on the rise
Among our strategic markets, the UK stands out; during the quarter we announced the gain of three new customers: East of England Co-op, O&CC, and Prezzemolo & Vitale, which together will equip more than 200 stores with our Pricer Plaza cloud platform and digital labels in the coming year. We see strong continued interest with customer dialogues, pilot installations and potential business in the UK.
The North American market continues to grow rapidly, which was confirmed at a well-attended trade fair, NRF, in New York in January. Very good and interesting customer dialogues bode well for the future. In order to be equipped to meet the opportunities the market offers, especially in the USA, we have made changes in our local organization and developed a new marketing plan to increase the conditions for winning more.
At the end of last year, we communicated a costs savings program with expected savings of around SEK 50 M a year and the intention to implement a restructuring of the operations. Planned costs savings are following our plan and are expected to have full effect by the end of the second quarter or the beginning of the third quarter this year.
Transformation for increased focus
Since January, our management team has actively worked on a transformation project with an increased focus on strategic markets and products to create a clear and well-functioning organization, digitalization and automation of manual processes and on investing in new areas of competence and training of existing employees in strategic areas. The results of ongoing measures are already beginning to be seen and felt within the company.
In March, an important milestone in Pricer's history was reached when we were able to communicate new long-term financial goals for the company. Annual growth in net sales should be on par with the market or at least 15 percent, and the operating margin should exceed 8 percent.
Our vision to be the retail’s first choice in in-store digitalization is a key component to our continued success, and we clearly see that this helps us to increasingly sell more to existing customers and win entirely new customers on both existing and new markets. It is my firm opinion that our future prospects are extremely good.
Magnus Larsson
President and CEO
For further information, please contact:
Magnus Larsson, President and CEO, +46 704 316851
Claes Wenthzel, acting CFO, +46 70 862 01 22
info@pricer.com
This information constitutes inside information that Pricer AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out above, at the time stated by the Company’s news distributor, Cision, at the publication of this press release.
Every care has been taken in the translation of this document. In the event of discrepancies, the Swedish original will supersede the English translation.
About Pricer
Pricer is a leading global technology company serving the rapidly growing smart retail market with in-store digital solutions that enhance both store performance and the shopping experience. Through electronic shelf labels, advanced technology, such as optical wireless communication and AI, and continuous innovation, Pricer offers the foundation for in-store communication and efficiency. The industry-leading Pricer platform delivers benefits from 30 years of deployment experience and is fast, robust, interconnectable and scalable. Pricer was founded in Sweden in 1991 and is listed on Nasdaq Stockholm. For further information, please visit www.pricer.com
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