Pricer (PRIC) Q3 2024 earnings summary

Executive summary

• Strong order intake in France, Pacific, Nordics, Benelux, and US, offset by a decline in Canada; net sales growth in Nordic, Italian, Benelux, and US markets.

• Transformation and cost-saving programs initiated in 2022 and fully effective in Q3, supporting improved profitability.

• SaaS transition progressing, with Plaza platform adoption expanding across new deployments.

• Finnish S-Group expanded partnership, ordering installations for 100+ additional stores.

• CEO highlights continued profitability improvement, cost savings, and a strong pipeline for future growth.

Financial highlights

• Q3 2024 net sales: SEK 613.8M; nine-month sales: SEK 1,928.0M.

• Q3 2024 gross margin: 22.1%; nine-month gross margin: 21.3%.

• Q3 2024 EBIT margin: 10.3%; net profit: SEK 47M; operating profit: SEK 63M.

• Cash flow impacted by inventory build-up and full amortization of factoring (close to SEK 170M).

• Financial costs reduced by SEK 8M due to elimination of factoring.

Outlook and guidance

• Expectation of higher sales in Q4, with inventory levels anticipated to decrease.

• Strong pipeline of leads and opportunities for 2024 and 2025, with continued focus on operational excellence and profitable growth.

• Market for digitalization and ESLs is accelerating, with North America and UK showing significant momentum.

• Investments in strategic markets and product portfolio to increase competitiveness and capture market share.