Q2 2023
- Net sales amounted to SEK 687.2 M (530.3), an increase of 29.6 percent compared to the same period last year.
- Gross margin amounted to 16.0 percent (16.6).
- Of net sales, SEK 15.5 M (10.3) refers to recurring revenue.
- Operating profit (EBIT) amounted to SEK –2.8 M (–6.8), which corresponds to an operating margin of –0.4 percent (–1.3).
- Order intake was SEK 678 M (581), an increase of 16.7 percent compared to the same period last year.
- Order backlog amounted to SEK 626 M (542), of which the majority is expected to be delivered in Q3 and Q4 2023.
- Profit for the period was SEK –15.8 M (–3.5).
- Earnings per share (basic) were SEK –0.14 (–0.03). Earnings per share (diluted) were SEK –0.14 (–0.03).
- Cash flow from operating activities was SEK 19.0 M (49.5).
- Publication of a directed share issue and a fully guaranteed rights issue of a total of approximately SEK 300 M.
H1 2023
- Net sales amounted to SEK 1,258.7 M (996.2), an increase of 26.4 percent compared to the same period last year.
- Gross margin amounted to 15.9 percent (17.2).
- Operating profit (EBIT) amounted to SEK –16.7 M (–16.5), which corresponds to an operating margin of –1.3 percent (–1.7).
- Order intake was SEK 1,385 M (1,131), an increase of 22.5 percent compared to the same period last year.
- Profit for the period was SEK –43 M (–13).
- Earnings per share (basic) were SEK –0.39 (–0.12). Earnings per share (diluted) were SEK –0.39 (–0.12).
- Cash flow from operating activities was SEK –78.0 M (29.2).
Comments from President and CEO Magnus Larsson
Our strong growth continued during the second quarter. Net sales increased to SEK 687 M which corresponds to a growth of 30 percent compared to last year. At the same time, order intake increased by 17 percent to SEK 678 M, the third highest in Pricer’s history.
Our sales strategy to win new customers and to grow with existing customers in new markets has paid off. In France, we secured several large contracts and in strategic markets such as the UK, US, Australia and Spain, we also won commercial installations with new store chains.
Retailers’ willingness to invest in store digitalization is still record high, and our offer is generating considerable interest, as confirmed by the announced framework agreement signed with Carrefour in the quarter. As a result of the new agreement, Carrefour has placed larger orders for France and we are very optimistic about the future as Carrefour is now installing our system in Spain and Romania, among others. In addition to the installation of our digital labels, the focus is on joint innovation and retail media, where a first installation of Pricer’s Digital Signage solution was in focus when Carrefour celebrated the supermarket’s 60th anniversary.
We are also proud of the agreement with the international grocery wholesaler who chose Pricer’s solution for its 49 French stores. The labels delivered are some of the first to be produced in our new production facility in Germany, which was inaugurated in May and is now fully operational. The deal is worth approximately SEK 70 M and our customer agreement also gives us the opportunity to address the customer’s international store network.
The market is currently growing very fast, driven by factors such as inflation, high personnel costs personnel costs, lack of qualified personnel, increased need for digitalization and cost focus. The share issues totalling approximately SEK 300 M that were announced during the quarter give us the opportunity to grow at least in line with the market, and I would like to thank you for the confidence we have already received through, among other things, subscription commitments.
The gross margin amounted to 16 percent and continues to be low but showed a positive trend for the second quarter in a row. We are seeing that component costs are continuing to fall, both in general, and due to price negotiations, we conducted with our subcontractors. This, combined with successful customer price negotiations mean that we expect an improvement in gross margin in the second half of 2023. In the long run, our expanded SaaS and software offering, along with an increased share of four-color labels, will also contribute to an enhanced gross margin.
The operating result amounted to SEK –3 M compared to SEK –7 M during the same period in 2022. We continue to actively work to balance our operating expenses without impacting planned growth and thus our ability to develop, produce, sell and deliver.
At the end of April, we participated in the UK’s important “Retail Technology Show” in London where our solutions received a lot of attention and we initiated several interesting customer dialogues. After the show, we have launched several four-color pilot projects in different countries, including in addition to the UK in Australia, Japan and the USA, which we view very positively. Now that we have completed a number of installations of entire stores with four-color labels, we see an increased commitment from both retailers and their customers. We see that several of our pilot projects now lead to sales and that the desired delivery volumes are increasing rapidly.
Our vision to be the retail’s first choice in in-store digitalization is an important part of our continued success, and we are optimistic about the future. We have strong customer relationships, fantastic employees, and a strong offer in a growing market. Combining this with the enhancement of our balance sheet, I believe our future looks very bright.
Magnus Larsson
President and CEO
For further information, please contact:
Magnus Larsson, President and CEO, +46 704 316851
Susanna Zethelius, CFO, +46 704 440 092
info@pricer.com
This information is information that Pricer AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:30 CET on July 20, 2023.
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
Attached files