Pricer: Preliminary Q1 numbers – ABG

Sales of SEK 465m (+1% vs. ABGSCe)…
…but EBIT of SEK -10m (ABGSCe SEK 19m)
Isolated numbers would imply -21% on ‘22e EBIT

Higher costs from freight rates and electronical components
This afternoon, Pricer gave an update to its Q1’22 financials, with preliminary numbers for sales of SEK 465m (+1% vs. ABGSCe SEK 460m), up +18% y-o-y, and EBIT of SEK -10m (vs. ABGSCe SEK 19m and Q1’21 EBIT of SEK 17m). The company says that some reasons for the lower profits stem from increased prices for electronic components, raw materials, and transportation. As such, it cites similar trends to what we have seen in recent quarters, although the situation seems to have worsened in Q1. Furthermore, the expected EBIT includes negative FX effects of c. SEK 10m. The company says that it has implemented several profitability-improving measures that will be fruitful in H2’22.

Order intake continues to shine, growing 24% y-o-y
Although reported profit was well below ABGSCe, the preliminary order intake figure of SEK 551m represents an increase of 24% y-o-y. This was also 13% ahead of our forecast of SEK 448m. As such, we think that it is fair to assume that demand for its solutions remains strong, while we also note that several negative effects on its operations are outside the firm’s control.

Estimate changes
The company will release the full report on 26 April. In terms of estimate changes, the isolated Q1 EBIT implies -21% on our current ’22 EBIT.

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https://www.introduce.se/foretag/pricer/Equity-research/2022/4/pricer—preliminary-q1-numbers/

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