Sweden's Pricer Q3 profit margin hits record high
Sweden's Pricer Q3 profit margin hits record high
Overview
Sweden retail tech firm's Q3 net sales fell yr/yr, but profit margin reached historic high
Order intake rose 27% in Q3, driven by North America and strategic growth markets
Company began shutting down German manufacturing facility due to lack of competitiveness
Outlook
Pricer expects competition and price pressure to remain intense in coming quarters
Company sees opportunities from growing demand for software, IoT solutions and retail media
Pricer plans to expand its IoT solutions portfolio during 2027 to meet retailer demand
Result Drivers
GROSS MARGIN EXPANSION - Co said higher gross margin was driven by favorable customer mix, reduced COGS and increased contribution from Pricer Plaza
ORDER INTAKE GROWTH - Co attributed increased Q3 order intake to strong performance in priority markets including Nordic, US and Pacific regions, with ongoing demand from Sobeys in Canada
OPERATIONAL EFFICIENCY - Co initiated shutdown of German manufacturing facility to improve competitiveness and accelerate depreciation through Feb 2027
Company press release: ID:nWkrCCbfV
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales |
| SEK 504.20 mln |
|
Q3 Basic EPS |
| SEK 0.27 |
|
Q3 EBIT Margin |
| 11.40% |
|
Q3 Operating Profit |
| SEK 57.50 mln |
|
Q3 Orders |
| SEK 449 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Pricer AB is SEK4.60, about 17.9% above its October 21 closing price of SEK3.90
Reuters Recommended Reads
Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand
Oct 21 - Sweden's SKF misses Q3 sales, operating profit estimates
Oct 21 - Sweden's AddLife beats Q3 net sales expectations
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)