Pricer: Q2 sales in line, but EBIT came in above - ABG

Q2 results
Sales SEK 389m (0.9% vs ABGSC 386m), Gross profit SEK 95m (1.2% vs ABGSC 94m), EBIT SEK 23m (18.5% vs ABGSC 19m), PTP SEK 19m (8.9% vs ABGSC 18m), EPS SEK 0.14 / share (-12.0% vs ABGSC 0.16 / share). Order intake was SEK 408m (+1% vs. ABGSC SEK 404m), representing y-o-y growth of 26%.

Q2 thoughts
Pricer’s strong momentum continued in Q2. Sales and EBIT grew 35% and 546% y-o-y, respectively, driven by a broad set of customers in several markets, which we view positive. Sales and order intake were in line with our forecast, but EBIT was slightly above on the back of a tad lower opex than expected. Pricer’s says that the supply chain remains distressed, which consequently has burdened its gross margin in the quarter. Even so, the gross margin expanded to 24.5% in Q2 from 23.9% in Q1 due to an improved sales mix. Encouragingly, the company continues to see high activity on most of its markets. It also highlights the fact that the market is gradually demanding more complex ESL solutions.

Estimate revisions and valuation
Based on the Q2 report alone, our ‘21e EBIT would increase by 2.5%. We believe that consensus will make modest revisions on 2021-2022 forecasts. On our unrevised estimates, Pricer’s share is trading at 28x ‘21e EV/EBIT, and 20x on ‘22e.

https://www.introduce.se/foretag/pricer/Equity-research/2021/7/pricer---q2-sales-in-line-but-ebit-came-in-above/