Pricer (PRIC) Q2 2024 earnings summary

Executive summary

• Gross margin improved to 22.8% in Q2 2024, driven by cost reductions, favorable product mix, and recurring revenues, with over 25,000 stores equipped and 3,500+ connected to the Plaza SaaS platform.

• Operating profit and net profit reached among the highest in company history, with EBIT at 48.5 MSEK (7.5% margin) and net profit at 42.3 MSEK, despite a 6.3% decline in net sales.

• Strategic contract signed with a major North American grocery retailer for Plaza SaaS and four-color labels, marking the largest such deployment in the region.

• Strong momentum in the UK, with increased retailer engagement and digitalization driven by inflation, labor shortages, and rising minimum wages.

• Corporate transformation advanced with reorganization to clarify roles and mandates, supporting efficiency and alignment.

Financial highlights

• Q2 2024 net sales: SEK 644.0M (down 6.3% year-over-year); H1 2024 net sales: SEK 1,314.2M (up 4.4% year-over-year).

• Q2 2024 order intake: SEK 498M (down 26.6% year-over-year), mainly due to delayed orders from two large customers; order backlog at quarter-end: SEK 490M.

• Gross profit grew 34% year-over-year to 147.1 MSEK; operating expenses decreased by 18.8 MSEK in H1 2024.

• Cash flow from operating activities in Q2 2024: SEK 68.9M (up from SEK 19.0M); H1 2024: SEK 51.6M (up from SEK -78.0M in H1 2023).

• Earnings per share (Q2 2024): SEK 0.26 (up from SEK -0.14); H1 2024: SEK 0.35 (up from SEK -0.39).

Outlook and guidance

• Majority of order backlog expected to be delivered in Q3 and Q4 2024, with improved order intake anticipated as delayed orders materialize.

• Continued gross margin strength expected, though product mix may cause some fluctuations.

• Plaza SaaS migration and recurring revenue growth to continue, though ramp-up is gradual.

• Production capacity for four-color labels will increase with new manufacturing in Germany starting Q4 2024.