Pricer: Order growth remains on the agenda - ABG

Strong ESL market drives orders +78% y-o-y (8% beat)
Fine-tuned sales revisions, but -3% on ’23e-‘24e EBIT
21x ‘23e EV/EBIT, 22% sales CAGR in ’21-‘24e


Broad-based Q3 order growth

The strong momentum seen in the previous quarter has continued. Orders grew 78% y-o-y (ABGSCe +65%) to SEK 546m, driven by multiple regions, including Canada, Sweden, Benelux, and France. While the ESL penetration is relatively high in France, we find it encouraging that Pricer’s traction in this country continues, which we believe stems from its framework agreement with Carrefour from Nov ’20. Furthermore, with a somewhat better supply chain in Q3, sales grew 16% y-o-y to SEK 576m (+1% vs. ABGSCe). The gross margin of 16.6% was flat q-o-q after four consecutive quarters with a sequentially declining gross margin, which we find positive as several recent headwinds (elevated freight costs, high spot prices for electronic components etc.) look set to diminish in the coming quarters, thus resulting in some recovery in the metric (18% in ‘23e vs. 17% in ‘22e). Finally, EBIT of SEK 10m declined from SEK 40m in Q3’21 but was above ABGSCe at SEK 1m, on lower R&D than expected.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/pricer/Equity-research/2022/10/pricer---order-growth-remains-on-the-agenda/