Pricer

First quarter 2025

• The order intake declined 52.9 percent compared with last year to SEK 457.3 M (971.6). Adjusted for exchange rate fluctuations, the order intake fell 53.0 percent.

• Net sales amounted to SEK 528.3 M (670.3), a decline of 21.1 percent compared with the same quarter last year.

• Gross profit amounted to SEK 122.9 M (128.2), which corresponds to a gross margin of 23.3 percent (19.1).

• Operating profit amounted to SEK 12.8 M (21.4), which corresponds to an operating margin of 2.4 percent (3.2).

• EBITDA, operating profit before depreciation, amortization and impairment, declined to SEK 30.7 M (37.6).

• Cash flow from operating activities amounted to SEK 141.9 M (58.0). This improvement was a result of lower capital tied-up in working capital.

• Order backlog amounted to SEK 597.6 M (661.0).

• Profit for the quarter declined to SEK -5.9 M (15.1), heavily impacted by a negative currency effect of SEK -16.4 M (11.6).

• Earnings per share (basic and diluted) were SEK -0.04 (0.09).

Comments from President and CEO Magnus Larsson
Pricer’s order intake and net sales for the first quarter of 2025 were weaker than expected. Increased uncertainty in several of Pricer’s core markets, resulting from the current macroeconomic situation, has led to a cautious approach to investments in the retail and grocery sectors. It appears that this macroeconomic uncertainty will also hamper investment in store digitalization in the second quarter, but it could also affect the remainder of 2025. Our pipeline of dialogs with potential new customers is gradually increasing, indicating continued strong growth potential for Pricer. For the larger retail chains, it is not a matter of if but rather when smart store digitalization will be introduced to optimize their operations and reduce operating costs.

Decline in operating profit due to lower volumes
Net sales for the first quarter amounted to SEK 528.3 M (670.3), which was an effect of increased caution among customers. This was particularly evident in the French market, while other markets such as Benelux and Canada continued to show growth. The year-earlier quarter was also exceptionally strong with significant deliveries to French grocery chains. Sales and invoicing in the Nordic and Baltic markets were also cautious in the first quarter as existing customers postponed planned purchases until the second half of the year, when they will be able to make purchases directly from Pricer instead of through a distributor. Recurring revenue from Pricer Plaza continued to increase according to plan and now amounts to SEK 40.3 M (22.7) for the rolling 12-month period, up 78 percent. Despite a strong gross margin for the quarter of 23.3 percent (17.1), operating profit declined to SEK 12.8 M (21.4) as a result of lower net sales.
 

Continued optimization measures in line with new strategy
Pricer’s transformation process has had a significantly positive effect on profitability over the past year. It has given us better protection against periods of low demand, but above all has presented many possibilities to capitalize on the long-term growth opportunities available for digital store solutions. We have worked on further optimizing our strategy over the past six months. In brief, the strategy involves well-defined customer and market segmentation and expanding and future-proofing our product portfolio. An example of this was the launch of Pricer Avenue at the start of January 2025. This launch generated very high interest among customers and we are planning pilot projects together with customers for the latter part of 2025. The strategy also includes prioritizing our geographical markets and how to address them. In line with this, we started streamlining our French operations in the first quarter, while at the same time increasing our resources in other markets where we see greater potential for growth and profitability. Pricer’s activities in the Nordic and Baltic countries, with an expanded team for direct sales and delivery, are progressing well and we see many opportunities for positive effects as early as this year.

Increased interest in the UK
In early April, Pricer attended the Retail Technology Show in London and over two days virtually all major UK retailers were given a deep dive into Pricer Avenue, Pricer Plaza and our strategic partnership with Focal Systems. All of these meetings confirmed our view of a market characterized by personnel shortages and sharply rising salary costs, all of which make store digitalization essential. For this reason, it is probable that the first UK grocery retailer will decide on major investments in digitalization toward the end of 2025 or in 2026.

Next phase of the strategy
Despite slightly lower customer activity and more uncertain macroeconomic factors in the first quarter, I am convinced that, after an accelerated internal change process during 2024, Pricer is now heading in exactly the right direction. We are now entering the next phase of the strategy, focused on increased commercialization, a new product line, clearer positioning and a renewed brand platform. At the same time, we are continuously optimizing and enhancing the efficiency of our operations based on a cost-conscious approach. There remains a widespread long-term need for store digitalization in the retail sector. There can be no doubt about this. It is still too early to draw conclusions on how the recent increase in tariffs and trade barriers will impact global retail. In the past, higher inflation has increased storeowners’ need and willingness to invest in digital, flexible, rapid and cost-effective management of goods and prices.

Magnus Larsson
President and CEO

Pricer AB will present its interim report for the first quarter 2025 in a webcast that will held on the day of publication at 13.00 CEST.

Link to the webcast: https://qcnl.tv/p/HppMv46m4gd9KS0EqJcnnw

For further information, please contact:
Magnus Larsson, President and CEO, +46 704 316851
Mats Arnehall, Chief Commercial Officer, +46 70-8108084
info@pricer.com

This information constitutes insider 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 pioneer and partner for in-store communication and digitalization in the rapidly evolving retail tech landscape. As a global technology leader, we empower leading retailers worldwide to shape effortless and inspiring shopping experiences that fundamentally change buying behaviors, boost sales, and drive operational efficiency. Leveraging cutting-edge innovation, we deliver scalable, high-performing solutions that easily integrate with existing systems, are energy-efficient, and user-friendly. Founded in Sweden in 1991 and listed on Nasdaq Stockholm, Pricer has delivered over 350 million electronic shelf labels in more than 28,000 stores across more than 70 countries. For further information, please visit  www.pricer.com