Pricer: Disappointing orders, but strong GM - ABG

- Sales -6% y-o-y, -12% vs. ABGSCe
- EBIT of SEK 49m, +12% vs. ABGSCe SEK 43m
- Expect cons to make minor EBIT changes

Q2 results
Sales came in at SEK 644m (-12% vs ABGSCe 730m), Gross profit 147m (6% vs ABGSCe 139m), EBIT 49m (12% vs ABGSCe 43m), PTP 44m (23% vs ABGSCe 35m), EPS SEK 0.26 / share (50% vs ABGSC 0.17 / share).

Q2 thoughts
Orders decreased by -27% y-o-y to SEK 498m and came in below our forecast of SEK 705m (-29% vs. ABGSCe), partly due to two large customers delaying orders until Q3e, and a slight slowdown in both France and Sweden. These delays also contributed to the negative sales development. The gross margin of 23% expanded from Q1 at 19.1% (ABGSCe 19.1%), driven by a favourable customer and product mix. This was encouraging. Opex was down 13% y-o-y, leading to the positive EBIT development. In terms of outlook, Pricer says that it sees increased interest in North America, but that more time is needed to see the full effects. Demand for four-colour labels is also increasing. Furthermore, the cost savings program is expected to have reached full effect by the beginning of Q3.

Valuation and estimate changes
Pricer's share is +64% YTD, trading at 12x-10x '24e-'25e EV/EBIT on our unrevised estimates. Based on the Q2 report, we expect consensus to make relatively small estimate change on 2024e EBIT, with lower sales assumptions (due to the weaker orders) offset by the better gross margins. There is a conference call at 13.00 CET

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/pricer/Equity-research/2024/7/pricer---disappointing-orders-but-strong-gm/