Year-end report 2023 – Pricer AB
High net sales of 801 MSEK – an increase of 15 percent compared to last year.
Fourth quarter 2023
• Net sales amounted to SEK 800.6 M (696.1), an increase of 15.0 percent compared to the same period last year.
• Of net sales, SEK 17.5 M (11.9) refers to recurring revenue.
• Gross margin amounted to 17.7 percent (15.5).
• Operating profit (EBIT) amounted to SEK 20.1 M (27.9), which corresponds to an operating margin of 2.5 percent (4.0).
• The company initiates a cost-saving program that is burdening the quarter with SEK 19.3 M in restructuring costs and SEK 14.8 M for impairment of capitalized development projects.
• Adjusted operating profit (EBIT) amounted to SEK 54.2 M (27.9), which corresponds to an operating margin of 6.8 percent (4.0).
• Order intake was SEK 668 M (648), an increase of 3.0 percent compared to the same period last year.
• Order backlog amounted to SEK 394 M (493), of which the majority is expected to be delivered in Q1 2024.
• Profit for the period was SEK 3.6 M (13.3).
• Earnings per share (basic) were SEK 0.02 (0.12). Earnings per share (diluted) were SEK 0.02 (0.12).
• Cash flow from operating activities was SEK 45.1 M (230.3).
Full-year 2023
• Net sales amounted to SEK 2,681.2 M (2,267.8), an increase of 18.2 percent compared to the same period last year.
• Gross margin amounted to 17.0 percent (16.5).
• Operating profit (EBIT) amounted to SEK 15.4 M (21.1), which corresponds to an operating margin of 0.6 percent (0.9).
• The company initiates a cost-saving program that is burdening the last quarter of the year with SEK 19.3 M in restructuring costs and SEK 14.8 M for impairment of capitalized development projects.
• Adjusted operating profit (EBIT) amounts to SEK 49,5 M (21,1), which corresponds to an operating margin of 1.8 percent (0.9).
• Order intake was SEK 2,576 M (2,325), an increase of 10.8 percent compared to the same period as last year.
• Profit for the period was SEK –48.3 M (4.8).
• Earnings per share (basic) were SEK –0.35 (0.04). Earnings per share (diluted) were
SEK –0.35 (0.04).
• Cash flow from operating activities was SEK –116.0 M (282.7).
• The Board of Directors proposes that no dividend be paid for the financial year 2023.
Comments from President and CEO Magnus Larsson
I am pleased to announce that the year ended with a strong fourth quarter, which includes record net sales and a profit for the quarter despite the communicated restructuring and impairment losses.
Net sales in the quarter landed at SEK 801 M, the highest ever in Pricer’s history. This entails growth of 15 percent compared to the fourth quarter last year. Our order intake of SEK 668 M was a slight increase compared to the corresponding quarter last year but an increase of 28 percent compared to this year’s third (and previous) quarter.
Europe contributed with strong growth during the year on both existing and new markets and delivered net sales in 2023 that were 48 percent higher than in 2022. In our North American market, several projects with an expected start date in 2023 were delayed, and in Canada our largest customer temporarily slowed the rate of installation during the fall. At the same time, it is clear that interest in digitalization among existing and potential clients continues to be strong, and my belief in growth in the US market has not changed.
At the end of the year, we communicated a cost savings program with expected savings of around SEK 50 M a year and the intention to implement a restructuring of the operations. The background is that the company has grown rapidly at the same time as we have not adapted our method of working to the same rate that the company has grown. It was a difficult decision to let employees leave the company but completely necessary to be well-equipped to meet customers’ future needs at the same time as we ensure long-term competitiveness and profitable growth.
As a first step in the coming transformation work, I am reducing the size of our management group to increase our strategic focus, create a more efficient organization, and improve communication and decision-making.
During the quarter, we have taken approximately SEK 19 M in costs related to our restructuring and costs for impairment losses on capitalized development expenditures of around SEK 15 M, both of which affect our operating costs in the quarter. We also have a non-recurring cost in the quarter for the write-down of older components and labels in our inventory of 5.5 MSEK, which affects COGS and thereby reduces the gross margin for the quarter by 0.7 percent, from 18.4 percent to 17.7 percent.
Despite items affecting comparability and impairment losses, we are delivering in the fourth quarter an operating profit (EBIT) of SEK 20 M, and the profit for the period amounts to SEK 4 M. Adjusted operation profit (EBIT) of 54.2 MSEK.
Our vision to be the retail’s first choice in in-store digitalization is a key component to our continued success, and we clearly see that this helps us to increasingly sell more to existing customers and win entirely new customers on both existing and new markets. The framework agreement with Associated Grocers in Canada, the order from Felleskjøpet in Norway, and that new stores such as Praktiker in Bulgaria have placed orders are all signs of this.
We have strong customer relationships, fantastic employees, and a strong offer in a growing market. With our cost savings program, the transformative measures we are now taking, and our focus on customer satisfaction and sales, I consider our outlook for the future to be particularly good.
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
This information constitutes inside information that Pricer AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. 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