Continued trend of stronger profitability
Third quarter 2024
• Net sales amounted to SEK 613.8 M (621.9), a decrease of 1.3 percent compared with the same quarter last year.
• Operating profit increased to SEK 63.0 M (6.3), which corresponds to an operating margin of 10.3 percent (1.0).
• Operating profit before depreciation, amortization and impairment rose to SEK 81.3 M (21.2).
• Cash flow from operating activities amounted to SEK -71.8 M (-83.0) for the quarter, and was impacted by building up inventories and discontinuing factoring.
• Order intake was SEK 532 M (523), an increase of 1.7 percent compared with the same quarter last year.
• Order backlog for the quarter amounted to SEK 422 M (534).
• Profit for the quarter increased to SEK 41.9 M (-8.9).
• Earnings per share (basic and diluted) were SEK 0.26 (-0.05).
Comments from President and CEO Magnus Larsson
Pricer's trend of continuously stronger profitability compared with the previous quarter has continued in the third quarter. This is the result of our long-term efforts to enhance the company's efficiency and a shift in the product mix toward more advanced value-adding solutions for our customers.
Strong pipeline of customer discussions
Order intake for the quarter increased to SEK 532 M (523). An expected order, from one of the two customers with delayed orders mentioned in the second-quarter report, had a positive effect on our order intake for the quarter. Starting in the fourth quarter, order intake from the other major customer will increase as they have decided that all their stores will be equipped with electronic shelf labels, up to and including autumn 2025, as part of their accelerated store digitization. Furthermore, deliveries have commenced according to plan under the agreement we signed in August with a large North American grocery retailer. Compared with last year, we can see that the order intake in Canada has fallen, which was offset by a higher order intake in France, the Nordics, the US and Oceania. After the end of the quarter, we won a follow-up order from the Finnish S Group for 100 stores. Net sales in the quarter amounted to SEK 614 million (622). Adjusted for the French market, where sales are down compared to the previous year, we see a positive growth of 37% for other markets. We are continuing to plan for a higher rate of growth in the future - an assessment that is based on a strong pipeline of ongoing customer discussions, focused sales efforts, and widespread interest in our Pricer Plaza SaaS solution, including four-color labels.
Continued trend of higher profitability
Our long-term efforts to strengthen profitability continues. The gross profit margin was 22.1 percent (18.1), thanks to a favorable product mix and continuous efforts to reduce our costs. Our cost savings program had full effect in the third quarter and our operating profit increased to SEK 63 M (6.3), corresponding to an operating margin of 10.3 percent (1.0). The same is true for our net profit, which increased to SEK 41.9 M (-8.9).
Increasing indicators of rising interest
In the North American market, we can see how interest in and the need for in-store digitalization is continuing to rise so that prices can be updated in real time, savings can be made in labor costs and the operations can become more sustainable. Our new North American team continues to make progress in dialogues with potential customers, which is highly promising. In the UK, the installation of Pricer's solutions, including at Coop of East England, is generating widespread interest in the market, and essentially all major grocery retailers are investigating, planning or budgeting for in-store digitalization. Interest in digital solutions is also rising robustly in several other segments of the retail sector.
Transformation continues with target of increasing profitable growth
Pricer's internal transformation process is continuing according to plan, and as part of our journey of change, we have reorganized the business into a well-defined structure and are now primarily focusing on improving and streamlining our internal processes, such as through automation.
Retail's first choice
We have the privilege of operating in a market with the favorable combination of a low degree of penetration and an accelerating rate of growth. Retail chains, both large and small, in existing and new markets and segments, are realizing that digitalization is vital for handling staff shortages, inflation and competition with improved control and monitoring. Digitalization also provides opportunities for higher sales and enhancing the in-store customer experience. Pricer's offering and solutions have a very good reputation and provide a very strong investment proposition for our customers. As one of the leading players in store communication solutions and with a business model that is moving towards SaaS-only, I see particularly good opportunities for us to create long-term competitiveness and profitable growth, and to become retail's first choice in the future.
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 and the Swedish Securities Market Act. 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
