Earnings Release • Feb 11, 2021
Earnings Release
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Net sales in the quarter (+186%)
Operating margin in the quarter
Net profit for the quarter (+161%)
The Board of Directors proposes 25 percent increase in dividend to SEK 1.00 per share evenly split between two payment dates.
| Amounts in SEK M unless otherwise | Q4 | Q4 | Full year | Full year |
|---|---|---|---|---|
| stated | 2020 | 2019 | 2020 | 2019 |
| Order intake | 454 | 843 | 1 588 | 1 504 |
| Net sales | 680,3 | 237,8 | 1 759,5 | 1 002,9 |
| Gross margin, % | 22,5% | 36,3% | 24,0% | 33,0% |
| Operating profit | 69,3 | 24,0 | 155,2 | 100,4 |
| Operating margin, % | 10,2% | 10,1% | 8,8% | 10,0% |
| Cash flow 1) | 203,1 | 125,9 | 264,9 | 145,3 |
| Net profit for the period | 50,2 | 19,2 | 127,5 | 97,7 |
| Earnings per share, SEK 2) | 0,46 | 0,17 | 1,16 | 0,89 |
| 1) Cash flow from operating activities |
||||
2) Basic earnings per share
New record for net sales – ESL market is strong and growing
Delivery activity in the fourth quarter was in line with expectations and continued to be high. Once again, we can celebrate a new record-high for net sales in a single quarter. Net sales in the fourth quarter amounted to SEK 680 M, which corresponds to an increase of 186 percent compared to the same period last year. Order intake remained high at SEK 454 M.
In summary, we can declare 2020 a successful year for Pricer. Growth in net sales for the fullyear 2020 amounted to 75 percent compared to 2019, and thus reached a new record for net sales of SEK 1,760 M. Operating profit increased by SEK 55 M to a total of SEK 155 M for fullyear 2020. Our continuous work to improve our tied up working capital combined with successful negotiations related to large customer projects improved cash flow for the operating activities for the full year and amounted to SEK 265 M. However, I would like to emphasize that the cash flow from the operating activities should be analyzed over time.
There is no missing the fact that this is an exciting time for the ESL (Electronic Shelf Label) market in general and for Pricer in particular. Systems for automation and digitalization are highly relevant, and the ongoing pandemic has accelerated the need for a transition within retail. This development is why independent analytical institutions are predicting continued strong market growth for many years. Pricer is participating in ongoing discussions and system evaluations with a number of large customers, but it is important to remember that new, large customer projects often have long sales cycles. For existing customers, the sales cycles are significantly shorter, and it is primarily in this category that the acceleration in demand has been noticeable in order intake in the short term.
In order to meet the high level of activity on the market, we established our own presence in several countries during the year, most recently in the United Kingdom. The need for more personnel resources and improved tools and processes to support scalability and growth are a natural part of the company's development. For example, in 2020 we invested in different system solutions to support a digital customer dialogue and strengthen our service offer.
Pricer Plaza, our cloud-based platform, to which around 400 stores were connected at the end of the year, is an important part of the shift in the company's position. By offering turnkey solutions that include both products and services, we are taking yet another step away from the role as a product supplier toward instead becoming a strategic partner for store digitalization. In dialogue with our customers, many exciting ideas are generated regarding the continued development of our solution offering.
In the fourth quarter, Pricer signed a global framework agreement with Carrefour to be its preferred supplier for both new ESL installations and upgrades of its installed base. Carrefour has worked with different ESL systems for a long time, and we are incredibly pleased and proud of the extended confidence to include all countries and store formats in the new agreement. In addition to the unique benefits of our system, such as reliability, scalability, speed and battery life, Pricer Plaza was a meaningful component in this highly competitive assessment.
2020 was in many ways a challenging year due to the pandemic that spread around the world. Our strong financial position has, despite the uncertainty that the pandemic initially brought, enabled us to continue to recruit and build on for increased competitiveness. With great creativity and problem-solving ability, the Pricer team in 2020 has taken on several of the challenges that have come our way and turned these into new opportunities and worked out solutions that will benefit us for many years to come. We have held together as a team and been proactive when required.
I want to take this opportunity to thank all the fantastic employees for the great work that is done every day and that makes us the successful company we are. Many thanks!
Helena Holmgren President and CEO
Europe, Middle East & Africa Americas
Asia & the Pacific
Enhanced restrictions were introduced in more markets, primarily in Europe, at the end of the year to reduce the spread of COVID-19. This means that a large number of retail verticals once again were forced to limit their operations, or in worst-case scenarios completely close, and the number of visitors in physical stores that were open fell sharply. Compared to the spring of 2020, the stores were better equipped to handle this transition, and their operations as a whole were less impacted. It was possible, with some exceptions, to carry out customer deliveries and installation projects according to plan, and there was thus no repeat of the postponed installations that were noted during the second quarter of the year.
The delivery and installation rate was in general very high in the fourth quarter, in particularly related to the large ongoing customer projects in the USA, Canada, the Netherlands, and Norway, all of which also reported follow-up orders during the quarter.
North America represented the strongest growth in the fourth quarter and for full-year 2020. For the first time, the Americas region represented the largest percentage of net sales on an annual basis. North America has long been identified as a future growth market, and Pricer strengthened its position on the market during the year. Pricer's system is well-suited for the requirements on scalability and robustness required by the geographic distribution of stores in both the USA and Canada, where support and services are more difficult due to the long distances. The degree of penetration in digital labels is very low in all retail verticals, and the market's potential in coming years is still assessed to be large.
The European market continued to be strong in 2020, with the Netherlands and Norway the primary contributors to growth. The penetration rate of digital labels is relatively high in several European countries, such as France and Norway, while countries like the United Kingdom and Spain have only just begun, with basically only paper labels on the shelves. In addition to the upgrade program for existing customers, this creates good continued growth potential in Europe as well.
Asia & Pacific, which represents a small portion of Pricer's operations, contributed with growth in the fourth quarter, even if the pandemic's effects were more significant in this part of the world for the full year. Pricer's strengthened presence in the region creates good conditions for growth in the future, if still from low levels.
The ESL market as a whole is strong and growing, but we are also seeing signs of an increasingly stressed situation in terms of access to standard components that are used by several different industries, which has affected both lead times and prices. Also access to logistics solutions has been heavily reduced, due to the challenges arising from the ongoing pandemic.
Order intake for the fourth quarter amounted to SEK 454 M (843), a decrease of 46 percent compared to the same quarter last year. Adjusted for exchange rate fluctuations, order intake decreased by 43 percent. Order intake is spread across a large number of customers on several geographic markets, with the USA, France and the Netherlands as the largest individual contributors. Order intake for the quarter includes a follow-up order of around SEK 107 M from a leading US retail chain and a follow-up order of around SEK 50 M from the Dutch chain PLUS Retail.
Order intake amounted to SEK 1,588 M (1,504) for the full year, an increase of 5 percent compared to the same period last year. Adjusted for exchange rate fluctuations, order intake rose by 8 percent. France, the USA and Canada comprise the largest countries. The order intake has a wide geographic spread and includes several new customers that signed during the year.
Order backlog at the end of 2020 amounted to SEK 495 M (731), of which the majority is expected to be delivered in H1 2021.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2019 | 2020 | 2019 |
| Europe, Middle East & Africa | 279,7 | 201,1 | 839,5 | 807,7 |
| Americas | 388,8 | 34,3 | 883,0 | 122,7 |
| Asia & the Pacific | 11,8 | 2,4 | 37,0 | 72,5 |
| Total net sales | 680,3 | 237,8 | 1 759,5 | 1 002,9 |
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2019 | 2020 | 2019 |
| Net sales | 680,3 | 237,8 | 1 759,5 | 1 002,9 |
| Cost of goods sold | -527,5 | -151,4 | -1 336,4 | -672,0 |
| Gross profit | 152,7 | 86,4 | 423,1 | 331,0 |
| Gross margin | 22,5% | 36,3% | 24,0% | 33,0% |
| Operating expenses | -89,5 | -59,6 | -282,1 | -227,2 |
| Other income and expenses | 6,0 | -2,8 | 14,2 | -3,3 |
| Operating profit | 69,3 | 24,0 | 155,2 | 100,4 |
| Operating margin | 10,2% | 10,1% | 8,8% | 10,0% |
| Reported | |||
|---|---|---|---|
| current | Reported | Adjusted | |
| Amount in SEK M unless otherwise stated | period | change | for F/X |
| Fourth quarter compared with the same period last year | |||
| Net sales | 680,3 | 186% | 211% |
| Cost of goods sold | -527,6 | 248% | 286% |
| Gross profit | 152,7 | 77% | 80% |
| Operating expenses | -89,5 | 50% | 53% |
| Other income and expenses | 6,0 | - | - |
| Operating profit | 69,2 | 169% | 173% |
| January - December compared with the same period last year | |||
| Net sales | 1 759,5 | 75% | 83% |
| Cost of goods sold | -1 336,4 | 99% | 110% |
| Gross profit | 423,1 | 28% | 29% |
| Operating expenses | -282,1 | 24% | 25% |
| Other income and expenses | 14,2 | - | - |
| Operating profit | 155,2 | 50% | 50% |
Net sales amounted to SEK 680.3 M (237.8) in the quarter, an increase of 186 percent compared to the same quarter last year. Adjusted for exchange rate fluctuations, net sales increased by 211 percent. The majority of the sales occurred in the USA, France and Canada. Net sales in Q4 2020 were spread across a large number of customers, of which a significant portion were related to the large ongoing customer project in the USA.
Gross profit amounted to SEK 152.7 M (86.4), and the gross margin amounted to 22.5 percent (36.3) for the quarter. The change in the gross margin continued to be primarily an effect of the product and contract mix, where the majority of the net sales came from large customer projects. Access to freight solutions continued to deteriorate in the fourth quarter, both for air and sea, which resulted in significant price increases and pressure on the gross margin. The majority of the company's costs for goods sold were in USD, while net sales were generated primarily in USD and EUR. The currency effects had a negative impact on gross profit compared to last year.
Operating expenses increased to SEK -89.5 M (-59.6) in the quarter, an increase of 50 percent compared to the same quarter last year. This increase is primarily due to staff and consultants related to investments to expand the customer service offer, product development, IT infrastructure, enhanced market presence on several geographic markets, and restructuring costs related to organizational changes. Due to product launches in the fourth quarter, there were transitions between large development projects, which resulted in a lower degree of capitalization of development expenses than in previous quarters and compared to the same period last year. In total, around SEK 10 M that has been expensed during the fourth quarter is estimated to be non-recurring in nature. Operating expenses are primarily in SEK, but they are also in EUR and USD.
Other income and expenses amounted to SEK 6.0 M (-2.8) and consisted of the net effect of realized and unrealized currency revaluations of trade receivables and trade payables.
Operating profit amounted to SEK 69.3 M (24.0), which corresponded to an operating margin of 10.2 percent (10.1). An increase in the gross profit led to an increase in both the operating profit and the operating margin.
Financial items, primarily consisting of currency revaluation of balance sheet items such as cash and cash equivalents, had a negative impact on the quarter and amounted to SEK -14.9 M (-4.0), which was largely due to negative translation effects on currency accounts in USD.
Tax for the quarter amounted to SEK -4.2 M (-0.9), of which SEK -2.4 M (-0.3) refers to deferred tax and SEK -1.8 M (-0.6) to current tax. The current tax rate amounted to -3 percent (-3), and the reported total tax rate amounted to -8 percent (-4). The low tax rate is primarily due to the capitalization during the period of all of the parent company's previously non-recognized tax losses carried forward. Deferred tax assets related to capitalized losses carried forward amounted in the balance sheet on December 31, 2020, to SEK 66.9 M (70.4).
Profit for the period was SEK 50.2 M (19.2). The increase compared to the last year can be attributable to an increase in operating profit.
Translation differences in other comprehensive income of SEK -20.9 M (-10.0) consisted of currency revaluation of net assets in foreign operations.
Net sales amounted to SEK 1,759.5 M (1,002.9) for the full year, an increase of 75 percent compared to the same period last year. Net sales were spread across a large number of customers. The majority of the sales occurred in the USA, France, the Netherlands, Norway and Canada. A significant portion of the net sales was related to the large US customer project. Adjusted for changes in exchange rates, net sales increased by 83 percent.
Gross profit amounted to SEK 423.1 M (331.0), and the gross margin amounted to 24.0 percent (33.0) for the period. The change in the gross margin is primarily a continued consequence of the product and contract mix. Freight supply was limited due to reduced air traffic and closed borders to prevent the spread of the coronavirus, which resulted in a sharp increase in prices for both sea and air freight, making freight costs significantly higher than normal. The majority of the company's costs for goods sold were in USD, while net sales were generated primarily in EUR and USD. The currency effects on gross profit were slightly negative compared to last year.
Operating expenses increased to SEK -282.1 M (-227.2) in the period, an increase of 24 percent compared to the same period last year. The increase was primarily a result of increased costs for staff and consultants related to investments in a broader customer service offer, product development, IT infrastructure, and an enhanced market presence in a number of geographic markets. No state support was received during the year to dampen the effects of COVID-19.
Other income and expenses amounted to SEK 14.2 M (-3.3) for the period and consisted of the net effect of realized and unrealized currency revaluations of trade receivables and trade payables.
Operating profit amounted to SEK 155.2 M (100.4), which corresponded to an operating margin of 8.8 percent (10.0). The increase in net sales and gross profit resulted in an increase in operating profit but with a lower operating margin.
Financial items, which consist primarily of currency revaluation of balance sheet items such as cash and cash equivalents, impacted the period negatively and amounted to SEK -21.5 M (0.8).
Tax for the period amounted to SEK -6.2 M (-3.5), of which SEK -1.3 M (0.3) refers to deferred tax and SEK -4.8 M (-3.8) to current tax. The current tax rate amounted to -4 percent (-4), and the reported total tax rate amounted to -5 percent (-4). The low tax rate is primarily due to the capitalization during the period of all of the parent company's previously non-recognized losses carried forward.
Profit for the period was SEK 127.5 M (97.7). The increase compared to last year can be attributable to an increase in operating profit.
Translation differences in other comprehensive income of SEK -19.1 M (6.7) consisted of currency revaluation of net assets in foreign operations.
Cash flow from operating activities amounted to SEK 203.1 M (125.9) for the fourth quarter. The change in working capital during the quarter had a positive impact on cash flow from operating activities of SEK 116.6 M (95.2). Trade receivables decreased, primarily due to project-based payment terms that temporarily strengthened cash flow. As the company chipped away at the high order backlog at the beginning of the quarter, both inventory and receivables from suppliers (for component purchases that are re-invoiced) decreased at the same time as trade payables were paid and customer payments received. Since there is a major timing effect in the cash flow from operating activities, this should be analyzed over time.
Cash flow from investing activities amounted to SEK -9.6 M (-14.9) in the fourth quarter and consisted primarily of capitalized development expenditure of SEK -6.1 M (-12.7) for continued investments in product development and investments in property, plant and equipment of SEK - 3.5 M (-2.2) attributable primarily to production equipment.
Cash flow from financing activities amounted to SEK -62.8 M (-3.1) during the fourth quarter and referred to the dividend of SEK -44.2 M (-), amortization of lease liabilities of SEK -2.6 M (-3.1) and a buy-back shares of SEK -16.0 M (-). According to a resolution by the Annual General Meeting, the dividend was divided into two payouts of SEK 0.40 per share each, which were paid in May and November 2020.
Exchange rate differences in cash and cash equivalents amounted to SEK -18.9 M (-3.2), which was a result of negative translation effects on currency accounts in USD and EUR.
Cash and cash equivalents amounted to SEK 262.4 M (194.2) on December 31, 2020. In addition to cash and cash equivalents, the company has an unutilized overdraft facility of SEK 50 M (50).
Cash flow from operating activities amounted to SEK 264.9 M (145.3) for the period. The change in working capital had a positive impact of SEK 61.2 M (9.2) on cash flow from operating activities, primarily due to an increase in inventory and trade receivables, which decreased cash flow, and an increase in trade payables, which increased cash flow.
Cash flow from investing activities amounted to SEK -61.9 M (-50.0) during the period and consisted primarily of capitalized development expenditure of SEK -45.6 M (-39.0) and investments in property, plant and equipment of SEK -16.3 M (-11.0) attributable primarily to production equipment.
Cash flow from financing activities amounted to SEK -113.2 M (-76.3) during the full year and referred to the dividend of SEK -88.3 M (-66.2), amortization of lease liabilities of SEK -11.0 M (-10.1), allocation of treasury shares of SEK 2.1 M (-), and the buy-back of shares of SEK -16.0 M (-).
Exchange rate differences in cash and cash equivalents amounted to SEK -21.5 M (4.1), which was a result of negative translation effects on currency accounts in USD and EUR.
| Stated in thousands of shares | Class A | Class B | Total |
|---|---|---|---|
| Outstanding shares at the beginning of the year | 226 | 110 746 | 110 972 |
| Issued and converted shares in the year | - | - | - |
| Issued at the end of the period | 226 | 110 746 | 110 972 |
| Treasury shares | - | -877 | -877 |
| Outstanding shares at end of period | 226 | 109 869 | 110 095 |
Class A share carries five votes and class B share carries one vote
From the 2017 performance share plan, 227,995 shares were transferred free of charge in June 2020 to the participants. Due to the fulfillment of the performance share plan, Pricer decreased its treasury shares by 227,995.
In December 2020, a total of 400,000 shares were repurchased. The buy-back program was conducted in accordance with the Regulation (EU) No. 596/2014 (the Market Abuse Regulation) and Commission Delegated Regulation (EU) No 2016/1052 (the Safe Harbour Regulation).
Pricer's holdings of treasury shares amounted on December 31, 2020, to 877,136 (705,131) Class B shares. These shares are held to be able to meet obligations on matching and performance shares under the outstanding performance share plans.
| Maximum in | Transferred free of | ||
|---|---|---|---|
| Performance | thousands of | charge to the | |
| share plan (LTI) | shares | Vesting period | participants |
| LTI 2018 | 325 | Jun 2018 - May 2021 | Jun 2021 |
| LTI 2019 | 240 | Jun 2019 - May 2022 | Jun 2022 |
| LTI 2020 | 330 | Jun-2020 - May 2023 | Jun 2023 |
The value of the promise is expensed during the vesting period. The maximum number of shares in obligations decreased during Q4 2020 due to changes in personnel.
For more information about the performance share plans from 2018 and 2019, please refer to Note 4 of the 2019 Annual Report. Read more under Note 5 2020 Share Performance Plan in this interim report.
The average number of employees during the fourth quarter was 150 (134), and the number of employees at the end of the period was 151 (135). The average number, including hired staff and consultants was 181 (159) in the fourth quarter and 182 (156) at the end of the period. The organization was strengthened in several areas, such as customer project development, support, product development, and sales. In order to further meet the challenges within the digitalization of physical stores that the retail trade is facing, and to broaden the system's area of use, the company continued to expand its R&D organization. We also strengthened our presence in a number of geographic markets with the aim of managing both the increased demand and the growing installed customer base.
The Parent Company's net sales amounted to SEK 1,672.1 M (848.7), and the profit for the period amounted to SEK 97.4 M (143.3). Profit from financial items decreased since the item last year also included dividends from subsidiaries of SEK 52.8 M. The Parent Company's cash and cash equivalents amounted to SEK 225.1 M (167.9) at the end of the period.
Pricer's earnings and financial position are affected by various risk factors that must be considered when assessing the Group and the Parent Company and their future potential. These risks apply primarily to the development of the market for digital shelf edge labels and systems, as well as large currency fluctuations and also to political factors affecting trade such as import duties. In view of the client structure and the scope of the agreement, a delay in the installations or large fluctuations in exchange rates can have a significant effect in any given quarter. More information regarding risks is available in the 2019 Annual Report; see page 22 and Note 20.
Pricer, like other global companies, is affected by pandemics, and in 2020 the company was affected by COVID-19. During the first and second quarters, net sales and profitability were impacted negatively by the combined effects of the pandemic, primarily due to postponed customer deliveries but also due to effects that are difficult to quantify and are related to delays in new procurements and investments that have been postponed for practical reasons.
Uncertainty about the course of the pandemic is still high. Pricer is continuing to follow the guidelines and recommendations set up in each country where the company is active. The health of the staff has continued to be Pricer's top priority.
No forecast is provided for 2021.
The same accounting principles and bases for calculation were applied for the Group and the Parent Company as in the latest annual report.
No significant events occurred after the end of the reporting period.
As a result of Pricer's strong financial development, the Board has decided to revise the previous dividend policy. Pricer's new dividend policy implies an annual dividend of at least 50 percent of the company's profit after tax. The annual dividend level must be adapted to the company's strategy and financial position, combined with investment needs and risks that the Board deems relevant.
The Board will propose that the AGM approve a dividend of SEK 1.00 (0.80) per share. This corresponds to SEK 110.1 M (88.3), which will be paid in two equal tranches in May and November 2021. At the end of the year, Pricer had no debt, with the exception of leasing liabilities, and cash and cash equivalents amounted to SEK 262.4 M. The Board of Directors considers shareholder value at this point to be best created by primarily supporting the need for working capital to achieve organic growth and future investment needs.
The Nomination Committee for the 2021 AGM was announced in October 2020 and consists of Jari Ekblad (nominated by Göran Sundholm), Ulf Palm (nominated by in part Sifonen AB/Lars Ingvarsson, Hans Granberg, Anderssons Livs i Tingsryd AB, Stefan Olsson Management AB, J Grill Management AB and Ulf Palm), and Wilhelm Gruvberg (nominated by Alcur Fonder AB, Thomas Krishan and TAMT AB/Theodor Jeansson). The Nomination Committee itself has appointed Ulf Palm to be chair.
The Nomination Committee's proposal for the Board of Directors was presented on January 29 in a separate press release. Other proposals will be included in the notice of the Annual General Meeting. The Nomination Committee proposes that the Board of Directors consist of five members. The Nomination Committee proposes, for the period until the end of the next AGM, the re-election of Board members Knut Faremo, Hans Granberg, Jonas Guldstrand and Jenni Virnes and new election of Göran Sundholm. Thomas Krishan has declined re-election. Knut Faremo is proposed to continue as the Chair of the Board.
The AGM will be held in Stockholm on April 29, 2021, at 2:00 PM. It is planned to be held at Kapitel 8 Klara Strand, Klarabergsviadukten 90, Stockholm, but Pricer is following on an ongoing basis the recommendations from the Public Health Agency of Sweden. The notice will be duly distributed. The final day to request a matter to be added to the agenda for the AGM is March 18, 2021. The 2020 Annual Report will be published on Pricer's website no later than March 31, 2021, and sent upon request.
No later than March 31, 2021 Annual Report 2020 April 29, 2021 Annual General Meeting
April 23, 2021 Interim Report January–March 2021 July 20, 2021 Interim Report January–June 2021 October 22, 2021 Interim Report January–September 2021
Next interim report to be published on April 23, 2021
The Board of Directors and CEO hereby certify that this year-end report provides a true and fair view of the results of the operations, financial position and performance for the Parent Company and the Group and describes the significant risks and uncertainties to which the Parent Company and other companies in the Group are exposed.
This year-end report for Pricer AB (publ) was submitted on the authorization of the Board of Directors.
Stockholm, February 11, 2021
Pricer AB (publ)
Helena Holmgren President and CEO
This report has not been subject to an audit.
Every care has been taken in the translation of this document. In the event of discrepancies, the Swedish original will supersede the English translation.
This information is information that Pricer AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out below, at 8:30 CET on February 11, 2021.
For more information, please contact: Helena Holmgren, President and CEO: Tel.: +46 (0)702 870 068 Email: [email protected]
| Amounts in SEK M | Q4 2020 |
Q4 2019 |
Full year 2020 |
Full year 2019 |
|---|---|---|---|---|
| Net sales | 680,3 | 237,8 | 1 759,5 | 1 002,9 |
| Cost of goods sold | -527,5 | -151,4 | -1 336,4 | -672,0 |
| Gross profit | 152,7 | 86,4 | 423,1 | 331,0 |
| Selling expenses | -44,6 | -31,7 | -148,7 | -124,0 |
| Administrative expenses | -23,1 | -18,6 | -78,0 | -67,5 |
| Research and development costs | -21,7 | -9,3 | -55,4 | -35,8 |
| Other income and expenses | 6,0 | -2,8 | 14,2 | -3,3 |
| Operating profit | 69,3 | 24,0 | 155,2 | 100,4 |
| Net financial items | -14,9 | -4,0 | -21,5 | 0,8 |
| Net profit before tax | 54,4 | 20,0 | 133,6 | 101,3 |
| Income tax | -4,2 | -0,9 | -6,2 | -3,5 |
| Net profit for the period | 50,2 | 19,2 | 127,5 | 97,7 |
| Net profit for the period attributable to: | ||||
| Owners of the Parent Company | 50,2 | 19,2 | 127,5 | 97,7 |
| EARNINGS PER SHARE | ||||
| Q4 | Q4 | Full year | Full year | |
| 2020 | 2019 | 2020 | 2019 | |
| Basic earnings per share, SEK | 0,46 | 0,17 | 1,16 | 0,89 |
| Diluted earnings per share, SEK | 0,45 | 0,17 | 1,15 | 0,88 |
| Number of shares before dilution, millions Diluted number of shares, millions |
110,2 111,1 |
110,3 111,2 |
110,3 111,2 |
110,3 111,2 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
| Q4 | Q4 | Full year | Full year | |
| Amounts in SEK M | 2020 | 2019 | 2020 | 2019 |
| Net profit for the period | 50,2 | 19,2 | 127,5 | 97,7 |
| Items that are or may be reclassified to profit or loss for the period | ||||
| Translation differences | -20,9 | -10,0 | -19,1 | 6,7 |
| Other comprehensive income for the period | -20,9 | -10,0 | -19,1 | 6,7 |
| Net comprehensive income for the period | 29,3 | 9,1 | 108,4 | 104,5 |
| Net comprehensive income for the period attributable to: |
The breakdown between Selling expenses and Administrative expenses has been reviewed in 2020 and adjusted retroactively for the comparative figure for 2019 to improve comparability between the years.
| Amounts in SEK M | Dec 31 2020 |
Sep 30 2020 |
Jun 30 2020 |
Mar 31 2020 |
Dec 31 2019 |
|---|---|---|---|---|---|
| ASSETS | |||||
| Intangible assets | 338,0 | 352,3 | 346,5 | 352,3 | 325,8 |
| Property, plant and equipment | 30,3 | 30,0 | 28,7 | 29,0 | 24,3 |
| Right-of-use assets | 43,7 | 46,3 | 48,5 | 53,0 | 53,8 |
| Deferred tax assets | 75,0 | 77,4 | 76,7 | 76,5 | 76,3 |
| Total non-current assets | 487,0 | 506,0 | 500,4 | 510,7 | 480,2 |
| Inventories | 301,5 | 464,3 | 413,9 | 188,4 | 218,7 |
| Trade receivables | 235,6 | 312,6 | 155,2 | 193,2 | 147,6 |
| Prepaid expenses and accrued income | 9,5 | 13,4 | 17,2 | 13,1 | 12,2 |
| Other current receivables | 98,5 | 200,9 | 335,0 | 142,5 | 68,1 |
| Cash and cash equivalents | 262,4 | 150,5 | 132,9 | 180,1 | 194,2 |
| Total current assets | 907,5 | 1 141,8 | 1 054,2 | 717,4 | 640,8 |
| TOTAL ASSETS | 1 394,5 | 1 647,7 | 1 554,6 | 1 228,1 | 1 121,0 |
| EQUITY AND LIABILITIES EQUITY |
|||||
| Share capital | 111,0 | 111,0 | 111,0 | 111,0 | 111,0 |
| Other capital contributions | 393,2 | 408,3 | 405,5 | 404,8 | 404,4 |
| Reserves | 15,8 | 36,7 | 36,2 | 56,0 | 34,9 |
| Accumulated profits including profit for the year | 299,1 | 249,0 | 179,7 | 274,8 | 259,9 |
| Shareholder's equity attributable to the Parent Company's | |||||
| shareholders | 819,0 | 805,0 | 732,4 | 846,6 | 810,2 |
| LIABILITIES | |||||
| Non-current provisions | 24,0 | 18,7 | 17,0 | 16,3 | 15,4 |
| Non-current lease liabilities | 33,5 | 36,0 | 38,1 | 42,2 | 43,1 |
| Total non-current liabilities | 57,6 | 54,7 | 55,1 | 58,5 | 58,5 |
| Advances from customer | 6,4 | 9,8 | 7,5 | 9,1 | 8,3 |
| Trade payables | 384,4 | 609,8 | 603,9 | 199,6 | 155,5 |
| Current lease liabilities | 11,8 | 11,8 | 11,7 | 11,9 | 11,5 |
| Other current liabilites | 19,5 | 57,2 | 55,4 | 11,9 | 9,0 |
| Accrued expense and deferred income | 73,0 | 79,8 | 70,5 | 73,6 | 51,7 |
| Current provisions | 22,8 | 19,7 | 18,0 | 16,8 | 16,2 |
| Total current liabilities | 517,9 | 788,1 | 767,1 | 322,9 | 252,2 |
| Total liabilities | 575,5 | 842,8 | 822,2 | 381,5 | 310,8 |
| TOTAL EQUITY AND LIABILITIES | 1 394,5 | 1 647,7 | 1 554,6 | 1 228,1 | 1 121,0 |
| Basic shareholders' equity per share, SEK | 7,44 | 7,29 | 6,63 | 7,68 | 7,35 |
| Diluted shareholders' equity per share, SEK | 7,37 | 7,21 | 6,58 | 7,61 | 7,29 |
| Full year | 9 mths | 6 mths | 3 mths | Full year | |
|---|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2020 | 2020 | 2020 | 2019 |
| Equity at the beginning of the period | 810,2 | 810,2 | 810,2 | 810,2 | 769,3 |
| Net profit for the period | 127,5 | 77,3 | 8,0 | 14,8 | 97,7 |
| Other comprehensive income for the period | -19,1 | 1,8 | 1,3 | 21,1 | 6,7 |
| Net comprehensive income for the period | 108,4 | 79,1 | 9,3 | 35,9 | 104,5 |
| Repurchase of own shares | -16,0 | - | - | - | - |
| Decreased number of treasury shares | 2,1 | 2,1 | 2,1 | - | - |
| Dividend | -88,3 | -88,2 | -88,2 | - | -66,2 |
| Share based payments, equity settled | 2,6 | 1,7 | -1,1 | 0,4 | 2,6 |
| Total transactions with owners of the Group | -99,6 | -84,3 | -87,1 | 0,4 | -63,6 |
| Equity at the end of the period | 819,0 | 805,0 | 732,4 | 846,6 | 810,2 |
| Attributable to: | |||||
| - Owners of the parent company | 819,0 | 805,0 | 732,4 | 846,6 | 810,2 |
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2019 | 2020 | 2019 |
| OPERATING ACTIVITIES | ||||
| Operating profit | 69,3 | 24,0 | 155,2 | 100,4 |
| Adjustment for non-cash items | 18,3 | 7,5 | 54,1 | 39,3 |
| - of which depreciations and amortizations | 13,1 | 9,9 | 45,5 | 37,7 |
| - whereof other non-cash items | 5,2 | -2,4 | 8,6 | 1,6 |
| Interest received | - | 0,6 | 0,2 | 0,6 |
| Interest paid | -0,2 | -0,4 | -1,3 | -1,3 |
| Paid income tax | -0,9 | -1,0 | -4,6 | -2,8 |
| Cash flow from operating activities before changes in working | ||||
| capital | 86,5 | 30,7 | 203,6 | 136,1 |
| Cash flow from changes in working capital | ||||
| Increase(-)/decrease(+) inventories | 159,6 | 47,4 | -87,3 | -28,5 |
| Increase(-)/decrease(+) trade receivables | 92,5 | 52,8 | -77,0 | 129,6 |
| Increase(-)/decrease(+) other current receivables | 104,7 | -13,7 | -28,7 | 6,7 |
| Increase(+)/decrease(-) trade payables | -244,6 | 21,6 | 217,6 | -56,9 |
| Increase(+)/decrease(-) other current liabilites | 4,5 | -13,0 | 36,6 | -41,7 |
| Cash flow from changes in working capital | 116,6 | 95,2 | 61,2 | 9,2 |
| Cash flow from operating activities | 203,1 | 125,9 | 264,9 | 145,3 |
| INVESTING ACTIVITIES | ||||
| Acquisition of intangible assets | -6,1 | -12,7 | -45,6 | -39,0 |
| Acquisition of tangible assets | -3,4 | -2,3 | -16,3 | -11,0 |
| Cash flow from investing activities | -9,6 | -14,9 | -61,9 | -50,0 |
| FINANCING ACTIVITIES | ||||
| Amortization of lease liabilities | -2,6 | -3,1 | -11,0 | -10,1 |
| Dividend paid | -44,2 | - | -88,3 | -66,2 |
| Decreased number of treasury shares | - | - | 2,1 | - |
| Repurchase of treasury shares | -16,0 | - | -16,0 | - |
| Net cash used in financing activities | -62,8 | -3,1 | -113,2 | -76,3 |
| Net cash flow for the period | 130,8 | 107,9 | 89,7 | 19,1 |
| Cash and cash equivalents at beginning of period | 150,5 | 89,6 | 194,2 | 171,0 |
| Exchange rate losses/gains in cash and cash equivalents | -18,9 | -3,2 | -21,5 | 4,1 |
| Cash and cash equivalents at end of period | 262,4 | 194,2 | 262,4 | 194,2 |
| Unutilized bank overdraft facility | 50,0 | 50,0 | 50,0 | 50,0 |
| Available funds at end of period | 312,4 | 244,2 | 312,4 | 244,2 |
| Full year | Full year | |
|---|---|---|
| Amounts in SEK M | 2020 | 2019 |
| Net sales | 1 672,1 | 848,7 |
| Cost of goods sold | -1 392,2 | -620,1 |
| Gross profit | 279,8 | 228,7 |
| Selling expenses | -65,1 | -51,8 |
| Administrative expenses | -54,3 | -46,1 |
| Research and development costs | -55,4 | -35,8 |
| Other income and expenses | 14,3 | -3,3 |
| Operating profit | 119,3 | 91,7 |
| Result from financial items: | ||
| Result from participations in group companies | - | 50,0 |
| Interest income and similar profit/loss items | 0,2 | 2,4 |
| Interest expenses and similar profit/loss items | -20,6 | -0,2 |
| Profit/loss before tax | 99,0 | 143,9 |
| Income tax | -1,5 | -0,6 |
| Net profit for the period | 97,4 | 143,3 |
| Full year | Full year | |
|---|---|---|
| Amounts in SEK M | 2020 | 2019 |
| Net profit for the period | 97,4 | 143,3 |
| Comprehensive income for the period | ||
| Items that are or may be reclassified to profit or loss for the period | ||
| Comprehensive income for the period | - | - |
| Net comprehensive income for the period | 97,4 | 143,3 |
The breakdown between Selling expenses and Administrative expenses has been reviewed in 2020 and adjusted retroactively for the comparative figure for 2019 to improve comparability between the years.
| Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | |
|---|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2020 | 2020 | 2020 | 2019 |
| ASSETS | |||||
| Non-current assets | |||||
| Intangible assets | 84,7 | 86,2 | 82,0 | 72,5 | 62,5 |
| Property, plant and equipment | 28,5 | 27,6 | 26,0 | 26,2 | 21,6 |
| Financial assets | |||||
| Participations in group companies | 190,9 | 186,7 | 186,2 | 187,1 | 186,9 |
| Recevables from group companies | 11,7 | 10,6 | 9,6 | 6,6 | 6,3 |
| Deferred tax assets | 73,8 | 76,4 | 75,8 | 75,4 | 75,3 |
| Total financial assets | 276,4 | 273,7 | 271,6 | 269,1 | 268,5 |
| Total non-current assets | 389,6 | 387,5 | 379,6 | 367,8 | 352,6 |
| Current assets | |||||
| Inventories, etc. | 184,8 | 184,9 | 227,1 | 114,3 | 170,8 |
| Current receivables | |||||
| Trade receivables | 79,9 | 158,2 | 63,5 | 98,5 | 56,7 |
| Receivables from current group companies | 153,2 | 299,0 | 179,2 | 98,6 | 65,4 |
| Other current receivables | 91,7 | 194,9 | 322,8 | 137,5 | 62,9 |
| Prepaid expenses and accrued income | 7,0 | 8,8 | 10,3 | 7,6 | 7,6 |
| Total current receivables | 331,9 | 660,9 | 575,7 | 342,1 | 192,6 |
| Cash and cash equivalents | 225,1 | 134,6 | 108,9 | 125,1 | 167,9 |
| Total current assets | 741,7 | 980,4 | 911,8 | 581,4 | 531,3 |
| TOTAL ASSETS | 1 131,3 | 1 367,9 | 1 291,4 | 949,2 | 883,8 |
| Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | |
|---|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2020 | 2020 | 2020 | 2019 |
| EQUITY AND LIABILITIES | |||||
| Shareholders' equity | |||||
| Restricted equity | |||||
| Share capital | 111,0 | 111,0 | 111,0 | 111,0 | 111,0 |
| Statutory reserve | 104,8 | 104,8 | 104,8 | 104,8 | 104,8 |
| Legal reserve for internally generated development expenditure | 83,7 | 84,4 | 79,8 | 69,9 | 59,4 |
| Total restricted equtiy | 299,5 | 300,2 | 295,6 | 285,7 | 275,3 |
| Non-restricted equity | |||||
| Share premium reserve | 196,2 | 211,3 | 208,5 | 207,9 | 207,4 |
| Retained earnings | 70,4 | 69,8 | 74,3 | 172,4 | 207,4 |
| Net profit for the year | 97,4 | 61,9 | -2,3 | 13,3 | 39,6 |
| Total non-restricted equity | 364,0 | 343,0 | 280,5 | 393,6 | 390,4 |
| Total equity | 663,5 | 643,2 | 576,1 | 679,4 | 665,6 |
| PROVISIONS | |||||
| Provisions | 33,5 | 28,9 | 26,3 | 24,4 | 23,6 |
| Total provisions | 33,5 | 28,9 | 26,3 | 24,4 | 23,6 |
| NON-CURRENT LIABILITES | |||||
| Non-current liabilities | 0,1 | 0,1 | 0,1 | 0,1 | 0,1 |
| Total non-current liabilites | 0,1 | 0,1 | 0,1 | 0,1 | 0,1 |
| CURRENT LIABILITES | |||||
| Advances from customer | 0,5 | - | - | - | - |
| Trade payables | 378,2 | 605,3 | 601,1 | 195,6 | 151,7 |
| Liabilities to group companies | 18,1 | 9,2 | 8,1 | 10,2 | 12,9 |
| Other current liabilities | 3,1 | 45,7 | 48,5 | 2,5 | 2,6 |
| Accrued expenses and deferred income | 34,4 | 35,6 | 31,1 | 37,0 | 27,3 |
| Total current liabilities | 434,3 | 695,8 | 688,8 | 245,3 | 194,6 |
| TOTAL EQUITY AND LIABILITIES | 1 131,3 | 1 367,9 | 1 291,4 | 949,2 | 883,8 |
| Amounts in SEK M | Full year 2020 |
9 mths 2020 |
6 mths 2020 |
3 mths 2020 |
Full year 2019 |
|---|---|---|---|---|---|
| Equity at the beginning of the period | 665,6 | 665,6 | 665,6 | 665,6 | 585,9 |
| Net comprehensive income for the period | 97,4 | 61,9 | -2,3 | 13,3 | 143,3 |
| Repurchase of own shares | -16,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Decreased number of treasury shares | 2,1 | 2,1 | 2,1 | - | - |
| Dividend | -88,3 | -88,2 | -88,2 | - | -66,2 |
| Share based payments, equity settled | 2,6 | 1,7 | -1,1 | 0,4 | 2,6 |
| Equity at the end of the period | 663,5 | 643,2 | 576,1 | 679,4 | 665,6 |
| Q4 | Q3 | Q2 | Q1 | Q4 | |
|---|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2020 | 2020 | 2020 | 2019 |
| Order intake | 454 | 440 | 324 | 371 | 843 |
| Order intake - rolling 4 quarters | 1 588 | 1 978 | 1 761 | 1 667 | 1 504 |
| Net sales | 680,3 | 565,7 | 287,6 | 225,9 | 237,8 |
| Net sales - rolling 4 quarters | 1 759,5 | 1 317,0 | 983,9 | 967,0 | 1 002,9 |
| Operating profit | 69,3 | 75,1 | 3,5 | 7,3 | 24,0 |
| Operating profit - rolling 4 quarters | 155,2 | 109,9 | 59,7 | 90,2 | 100,4 |
| Net profit for the period | 50,2 | 69,3 | -6,9 | 14,8 | 19,2 |
| Cash flow from operating activities | 203,1 | 38,2 | 21,3 | 2,2 | 125,9 |
| Cash flow from operating activities - rolling 4 quarters | 264,9 | 187,6 | 144,5 | 95,2 | 145,3 |
| Number of employees, end of period | 150 | 147 | 147 | 141 | 135 |
| Equity/assets ratio | 59% | 49% | 47% | 69% | 72% |
This year-end report for the Group was prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Annual Accounts Act. The year-end report for the Parent Company was prepared in accordance with Chapter 9 of the Annual Accounts Act and RFR 2, Accounting for Legal Entities, issued by the Swedish Financial Reporting Council. The same accounting principles and bases for calculation were applied for the Group and the Parent Company as in the latest annual report.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2019 | 2020 | 2019 |
| Revenue from goods | 648,8 | 218,3 | 1 670,4 | 924,3 |
| Revenue from services | 26,3 | 16,3 | 72,5 | 64,3 |
| Revenue from licenses | 5,2 | 3,3 | 16,6 | 14,3 |
| Total | 680,3 | 237,8 | 1 759,5 | 1 002,9 |
The company has allocated discounts proportionally for all performance obligations in the agreement except for when there is observable proof that the entire discount refers to one or several, but not all, performance obligations.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Direct customers | 78% | 56% | 72% | 47% |
| Resellers | 22% | 44% | 28% | 53% |
| Total | 100% | 100% | 100% | 100% |
| Dec 31 | Dec 31 | |
|---|---|---|
| Amounts in SEK M | 2020 | 2019 |
| Premises | 40,4 | 50,8 |
| Cars | 3,3 | 3,0 |
| Total | 43,7 | 53,8 |
| Dec 31 | Dec 31 | |
|---|---|---|
| Amounts in SEK M | 2020 | 2019 |
| Within one year | 11,8 | 11,5 |
| Between one and five years | 31,4 | 38,6 |
| More than five years | 2,1 | 4,5 |
| Total | 45,3 | 54,6 |
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| Amounts in SEK M | 2020 | 2019 | 2020 | 2019 |
| Depreciation of right-of use assets | 2,7 | 2,9 | 11,8 | 11,0 |
| (of which premises) | 2,4 | 2,6 | 10,4 | 9,9 |
| (of which cars) | 0,3 | 0,4 | 1,3 | 1,1 |
| Interest expense for lease liabilities | 0,2 | 0,4 | 1,1 | 1,1 |
| Amortization of lease liabilities | 2,6 | 3,1 | 11,0 | 10,1 |
For financial instruments measured at amortized cost — trade receivables, other current receivables and cash and cash equivalents, trade payables, lease debt, and other current interest-free liabilities — the fair value is assessed to correspond to the carrying amount. The fair values of other non-current and current liabilities are not assessed to deviate substantially from their carrying amounts.
| Dec 31 | Dec 31 | |
|---|---|---|
| Amounts in SEK M | 2020 | 2019 |
| Loan and trade receivables | 589,6 | 406,0 |
| Total financial assets | 589,6 | 406,0 |
| Lease liabilities | 45,3 | 54,6 |
| Other financial liabilities | 400,9 | 176,5 |
| Total financial liabilities | 446,2 | 231,2 |
The Annual General Meeting on May 6, 2020, resolved to establish an incentive program in the form of a share performance plan (LTI 2020) for certain senior executives and key employees, whereupon the participants, after an initial investment in Pricer's Class B shares, receive one matching share right and one performance-based share right per invested Class B share. Following the vesting period of three years, the share rights entitle the participants to receive one matching share and up to five performance shares depending on the outcome of the performance conditions. From the 2020 performance share plan, a maximum of 330 thousand shares can be transferred free of charge to the participants in June 2023 in the event the predefined performance targets are fully met. The value of the promise is expensed during the vesting period. The maximum number of shares in obligations decreased during Q4 2020 due to changes in personnel.
Significant related party transactions are described in Note 23 of the consolidated financial statements in the 2019 Annual Report. No related party relationships changed, and no significant transactions took place with related parties that significantly affect the Group's or Parent Company's financial position or earnings compared to the description in the 2019 Annual Report.
Floating charges (chattel mortgages) are a type of general collateral in the form of an undertaking to the bank. In the case of the Parent Company, guarantees are issued to customs authorities and landlords.
| Parent company | Group | ||||
|---|---|---|---|---|---|
| Dec 31 | Dec 31 | Dec 31 | Dec 31 | ||
| Amounts in SEK M | 2020 | 2019 | 2020 | 2019 | |
| Pledged assets | |||||
| Floating charges | 59,6 | 59,6 | 59,6 | 59,6 | |
| Blocked funds | - | - | - | 0,9 | |
| Total | 59,6 | 59,6 | 59,6 | 60,5 | |
| Contingent liabilities | |||||
| Bank guarantee | - | - | - | 0,9 | |
| Customs authorities | 0,1 | 0,1 | 5,1 | 5,7 | |
| Landlords | 1,7 | 1,7 | 1,7 | 1,7 | |
| Total | 1,8 | 1,8 | 6,8 | 8,3 |
| Amounts in SEK M | Q1 2019 |
Q2 2019 |
Q3 2019 |
Q4 2019 |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 261,9 | 270,7 | 232,5 | 237,8 | 225,9 | 287,6 | 565,7 | 680,3 |
| Cost of goods sold | -185,6 | -180,8 | -154,1 | -151,4 | -155,1 | -221,8 | -432,0 | -527,5 |
| Gross profit | 76,2 | 89,9 | 78,4 | 86,4 | 70,9 | 65,9 | 133,7 | 152,7 |
| Gross margin, % | 29,1% | 33,2% | 33,7% | 36,3% | 31,4% | 22,9% | 23,6% | 22,5% |
| Selling expenses | -32,0 | -31,8 | -28,5 | -31,7 | -38,7 | -32,8 | -32,6 | -44,6 |
| Administrative expenses | -17,5 | -16,7 | -14,7 | -18,6 | -17,1 | -16,6 | -21,2 | -23,1 |
| Research and development costs | -8,5 | -8,6 | -9,3 | -9,3 | -9,7 | -12,7 | -11,3 | -21,7 |
| Other income and expenses | -0,7 | 1,3 | -1,1 | -2,8 | 2,0 | -0,2 | 6,4 | 6,0 |
| Operating profit | 17,6 | 34,1 | 24,8 | 24,0 | 7,3 | 3,5 | 75,1 | 69,3 |
| Operating margin, % | 6,7% | 12,6% | 10,7% | 10,1% | 3,3% | 1,2% | 13,3% | 10,2% |
| Net financial items | 2,3 | -0,7 | 3,2 | -4,0 | 8,2 | -9,7 | -5,2 | -14,9 |
| Net profit before tax | 19,9 | 33,4 | 28,0 | 20,0 | 15,6 | -6,2 | 69,9 | 54,4 |
| Income tax | -0,5 | -1,1 | -1,0 | -0,9 | -0,7 | -0,7 | -0,6 | -4,2 |
| Net profit for the period | 19,3 | 32,2 | 27,0 | 19,2 | 14,8 | -6,9 | 69,3 | 50,2 |
| Net profit for the period attributable to: | ||||||||
| Owners of the Parent Company | 19,3 | 32,2 | 27,0 | 19,2 | 14,8 | -6,9 | 69,3 | 50,2 |
| EARNINGS PER SHARE | ||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | |
| Basic earnings per share, SEK | 0,18 | 0,29 | 0,25 | 0,17 | 0,13 | -0,06 | 0,63 | 0,46 |
| Diluted earnings per share, SEK | 0,17 | 0,29 | 0,24 | 0,17 | 0,13 | -0,06 | 0,62 | 0,45 |
| Number of shares before dilution, millions | 110,3 | 110,3 | 110,3 | 110,3 | 110,3 | 110,3 | 110,5 | 110,2 |
| Diluted number of shares, millions | 110,9 | 111,2 | 111,2 | 111,2 | 111,2 | 111,4 | 111,7 | 111,1 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| Amounts in SEK M | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 |
| Net profit for the period Items that are or may be reclassified to profit or loss for the period |
19,3 | 32,2 | 27,0 | 19,2 | 14,8 | -6,9 | 69,3 | 50,2 |
| Translation differences | 5,8 | 4,4 | 6,5 | -10,0 | 21,1 | -19,8 | 0,5 | -20,9 |
| Other comprehensive income for the period | 5,8 | 4,4 | 6,5 | -10,0 | 21,1 | -19,8 | 0,5 | -20,9 |
| Net comprehensive income for the period | 25,1 | 36,6 | 33,6 | 9,1 | 35,9 | -26,6 | 69,8 | 29,3 |
| Net comprehensive income for the period attributable to: | ||||||||
| Owners of the Parent Company | 25,1 | 36,6 | 33,6 | 9,1 | 35,9 | -26,6 | 69,8 | 29,3 |
The breakdown between Selling expenses and Administrative expenses has been reviewed in 2020 and adjusted retroactively for the comparative figure for 2019 to improve comparability between the years.
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| Amounts in SEK M | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 |
| OPERATING ACTIVITIES | ||||||||
| Operating profit | 17,6 | 34,1 | 24,8 | 24,0 | 7,3 | 3,5 | 75,1 | 69,3 |
| Adjustment for non-cash items | 10,7 | 12,3 | 8,8 | 7,5 | 15,2 | 10,4 | 10,3 | 18,3 |
| - of which depreciations and amortizations | 10,4 | 8,4 | 9,0 | 9,9 | 9,8 | 9,7 | 12,9 | 13,1 |
| - whereof other non-cash items | 0,4 | 3,9 | -0,3 | -2,4 | 5,4 | 0,7 | -2,6 | 5,2 |
| Interest received | - | 0,0 | - | 0,6 | - | - | - | 0,1 |
| Interest paid | -0,2 | -0,3 | -0,4 | -0,4 | -0,4 | -0,3 | -0,3 | -0,2 |
| Paid income tax | -1,1 | 0,1 | -0,9 | -1,0 | -0,9 | -1,0 | -1,8 | -0,9 |
| Cash flow from operating activities before changes in | ||||||||
| working capital | 27,0 | 46,2 | 32,3 | 30,7 | 21,2 | 12,7 | 83,2 | 86,5 |
| Cash flow from changes in working capital | ||||||||
| Increase(-)/decrease(+) inventories | -23,3 | -47,5 | -5,1 | 47,4 | 33,9 | -229,1 | -51,7 | 159,6 |
| Increase(-)/decrease(+) trade receivables | 67,9 | -30,1 | 39,1 | 52,8 | -45,1 | 36,7 | -161,0 | 92,5 |
| Increase(-)/decrease(+) other current receivables | -20,1 | 18,6 | 21,9 | -13,7 | -74,4 | -197,2 | 138,2 | 104,7 |
| Increase(+)/decrease(-) trade payables | 3,4 | 5,7 | -87,6 | 21,6 | 47,6 | 398,2 | 16,4 | -244,6 |
| Increase(+)/decrease(-) other current liabilites | -2,5 | -20,9 | -5,4 | -13,0 | 19,0 | 0,0 | 13,2 | 4,5 |
| Cash flow from changes in working capital | 25,4 | -74,3 | -37,1 | 95,2 | -19,0 | 8,6 | -45,0 | 116,6 |
| Cash flow from operating activities | 52,3 | -28,1 | -4,8 | 125,9 | 2,2 | 21,3 | 38,2 | 203,1 |
| INVESTING ACTIVITIES | ||||||||
| Acquisition of intangible assets | -7,8 | -8,3 | -10,2 | -12,7 | -14,6 | -14,0 | -10,9 | -6,1 |
| Acquisition of tangible assets | -2,9 | -4,7 | -1,1 | -2,3 | -6,6 | -2,0 | -4,3 | -3,4 |
| Cash flow from investing activities | -10,7 | -13,0 | -11,3 | -14,9 | -21,2 | -15,9 | -15,2 | -9,6 |
| FINANCING ACTIVITIES | ||||||||
| Amortization of lease liabilities | -2,2 | -2,7 | -2,1 | -3,1 | -2,9 | -2,8 | -2,8 | -2,6 |
| Dividend paid | - | -66,2 | - | - | - | -44,1 | - | -44,2 |
| Decreased number of treasury shares | - | - | - | - | - | 2,1 | - | - |
| Increased number of treasury shares | - | - | - | - | - | - | - | -16,0 |
| Cash flow from financing activities | -2,2 | -68,9 | -2,1 | -3,1 | -2,9 | -44,7 | -2,8 | -62,8 |
| Net cash flow for the period | 39,4 | -109,9 | -18,2 | 107,9 | -21,9 | -39,4 | 20,2 | 130,8 |
| Cash and cash equivalents at beginning of period | 171,0 | 213,5 | 104,3 | 89,6 | 194,2 | 180,1 | 132,9 | 150,5 |
| Exchange rate losses/gains in cash and cash equivalents | 3,1 | 0,8 | 3,5 | -3,2 | 7,8 | -7,9 | -2,5 | -18,9 |
| Cash and cash equivalents at end of period | 213,5 | 104,3 | 89,6 | 194,2 | 180,1 | 132,9 | 150,5 | 262,4 |
| Unutilized bank overdraft facility | 50,0 | 50,0 | 50,0 | 50,0 | 50,0 | 50,0 | 150,0 | 50,0 |
| Available funds at end of period | 263,5 | 154,3 | 139,6 | 244,2 | 230,1 | 182,9 | 300,5 | 312,4 |
In addition to the key financial ratios that are covered by the IFRS framework, this report also includes other key ratios and measures, so-called alternative performance measures, that Pricer considers to be important for monitoring, analyzing and managing its operations. These key ratios and measures also provide Pricer's stakeholders with useful information about the company's financial position, profit and loss and development in a consistent manner. The reconciliation and definitions of the alternative key ratios and measures used in this report and that cannot be inferred directly from the financial statements are presented below.
| Dec 31 | Dec 31 | |
|---|---|---|
| Amounts in SEK M unless otherwise stated | 2020 | 2019 |
| PERFORMANCE MEASURE | ||
| Operating expenses | ||
| Selling expenses | -148,7 | -124,0 |
| Administrative expenses | -78,0 | -67,5 |
| Research and development costs | -55,4 | -35,8 |
| Operating expenses | -282,1 | -227,2 |
| MARGIN RATIOS | ||
| Net Sales | 1 759,5 | 1 002,9 |
| Gross Profit | 423,1 | 331,0 |
| Gross profit margin, % | 24,0% | 33,0% |
| Operating profit | 155,2 | 100,4 |
| Operating margin, % | 8,8% | 10,0% |
| CAPITAL AND FINANCIAL RATIOS | ||
| Equity/assets ratio | ||
| Total assets | 1 394,5 | 1 121,0 |
| Equity | 819,0 | 810,2 |
| Equity/assets ratio, % | 59% | 72% |
| RETURN RATIOS | ||
| Equtiy per share basic/diluted | ||
| Number of outstanding shares, million | 110,2 | 110,3 |
| Dilution, million | 0,9 | 1,0 |
| Equity | 819,0 | 810,2 |
| Equity per share basic, SEK | 7,43 | 7,35 |
| Equity per share diluted, SEK | 7,37 | 7,29 |
| Earnings per share, before and after dilution | ||
| Avarage number of outstanding shares, million | 110,3 | 110,3 |
| Dilution, million | 0,9 | 1,0 |
| Net profit | 127,5 | 97,7 |
| Earnings per share, before dilution, SEK | 1,16 | 0,89 |
| Earnings per share, after dilution, SEK | 1,15 | 0,88 |
| ALTERNATIVE KEY RATIOS | DEFINITION | REASON FOR USE |
|---|---|---|
| PERFORMANCE MEASURE | ||
| Change adjusted for exchange rate fluctuations/change in local currency |
Relationship between the period's profit/loss and the comparative period's profit/loss translated using the period's exchange rates. |
This measure is used by management to follow underlying change in profit/loss in comparable currencies. |
| Gross profit | Net sales less cost of goods sold | Gross profit is an important measure for management since it is used to analyze the company's underlying development excluding factors such as the product mix and price changes that can give rise to sharp fluctuations in net sales. |
| Operating expenses | Refers to selling expenses, administrative expenses and R&D expenses that are included in operating activities. |
Operating expenses provide an overall picture of expenses that are charged to operating activities and are an important internal measure that management can influence to a large extent. |
| Items affecting comparability | Expenses of a non-recurring nature that are not part of the operating activities, such as personnel costs related to restructurings. |
This measure is used by management to understand which costs are not part of the underlying operating activities. |
| Operating expenses adjusted for items affecting comparability |
Operating expenses minus items affecting comparability. |
This measure is used by management to enable comparability of operating expenses between periods and to forecast future cost trends. |
| Operating profit | Profit before financial items and tax. | Operating profit provides an overall picture of the total profit generation in operating activities. This is a very important metric for internal use that management can influence to a greater extent than net profit. |
| Rolling four quarters | Financial KPIs and measurements based on the four most recent quarters. |
Rolling four quarters are used to show financial development over time adjusted for any seasonal effects. |
| MARGIN RATIOS | ||
| Gross profit margin | Gross profit as a percentage of net sales. | The gross margin is used for both internal evaluation and individual sales/contracts and to monitor development over time for the company as a whole. |
| Operating margin | Operating profit as a percentage of net sales. | Operating margin is one of management's most important measures for performance monitoring since it measures the company's ability to convert net sales into operating profit. |
| CAPITAL AND FINANCIAL RATIOS | ||
| Equity/asset ratio | Equity as a percentage of total assets. | A traditional measure that gives an indication of the company's ability to pay its debts. |
| RETURN RATIOS | ||
| Equity per share, before/after dilution | Equity attributable to owners of the Parent Company divided by the weighted number of shares before/after dilution on the balance sheet date. The dilutive effect can arise from the company's outstanding warrants or performance share plans. |
This measure is used to show development of equity per share over time and enable comparability with other companies. |
| ALTERNATIVE KEY RATIOS | DEFINITION | REASON FOR USE |
|---|---|---|
| Earnings per share, before/after dilution |
Profit for the period attributable to owners of the Parent Company divided by the average number of shares outstanding before/after dilution during the period. The dilutive effect can arise from the company's outstanding warrants or performance share plans. |
This measure is used to show development of earnings per share over time and to enable comparability with other companies. |
| OTHER RATIOS | ||
| Order intake | The value of binding customer orders, invoiced service contracts and call-off under framework agreements. Does not include the anticipated future value of frameworks agreements. |
Order intake is used to measure demand for the company's products and services during a specific period. This measure is also an important indicator of increases/decreases in demand between periods. |
| Change in order intake adjusted for exchange rate fluctuations |
Relationship between the period's order intake and the comparative period's order intake translated using the period's exchange rates. |
This measure is used by management to follow underlying change in order intake in comparable currencies. |
| Order backlog | The value of incoming orders that have not yet been invoiced. |
The size of the order backlog gives an indication of net sales development from a short to mid-term perspective. |
Pricer manufactures the world's most reliable electronic shelf-edge labels, which help retailers all over the world resolve important challenges introduced by modernization. Pricer's digital solutions optimize employee-intensive processes, ensure price information, and improve the buying experience for the customer.
With over 200 million labels installed in over 17,000 installations in more than 60 countries, Pricer is the world-leader in digital retail solutions.
For many years, Pricer's ideas, technology and employees have changed how the grocery retail trade functions and transformed an entire industry. Pricer is today the only supplier with optical wireless communication, which creates a scalable and reliable system that is not disrupted by other Wi-Fi systems. In addition, the battery performance of Pricer's labels is the market leader, featuring significantly less energy consumption than other communication systems without sacrificing speed and flexibility.
Pricer's customers today primarily operate in the grocery retail, DIY, electronics, and pharmacy industries. Customer needs and consumer preferences are the drivers for Pricer's innovative and sustainable solutions.
Pricer was founded in 1991 in Sweden, and the company's Class B share is listed on Nasdaq Stockholm Mid Cap.
For more information, please visit www.pricer.com.
Pricer AB Website: www.pricer.com Box 215 Telephone: +46 8 505 582 00 SE-101 24 Stockholm, Sweden CIN: 556427-7993 Street address: Västra Järnvägsgatan 7 SE-111 64 Stockholm
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