This article first appeared on GuruFocus .
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Gross Margin:Highest since 2020, contributing to higher gross profit despite lower net sales.
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Net Profitability:Turnaround from a loss in Q1 last year to a profit this year.
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Cash Flow:Strong operating cash flow of $53 million, increasing liquidity by $33 million to $341 million in cash.
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Sales:Down by $40 million compared to last year, impacted by currency fluctuations.
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Cost Savings:Expected annual savings of $17 million from cost-cutting measures starting in the second half.
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Order Intake:Stable growth from existing and new customers, with significant interest in the North American market.
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Exclusive Supply Agreement:Termination with Carrefour, expected low-single-digit impact on gross profit.
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New Agreement:$51 million agreement with Sobeys for deployment in 300-350 stores over 18 months.
Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Pricer AB ( PCRBF ) reported the highest gross margin since 2020, indicating improved profitability.
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The company turned its net profitability from a loss in Q1 last year to a profit this year.
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Strong cash flow was reported, with an increase in liquidity by $33 million in the quarter.
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The company secured a significant $51 million agreement with Sobeys for the deployment of 300 to 350 stores.
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There is growing interest and engagement in the North American market, particularly in Canada and the U.S.
Negative Points
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Sales were down by $40 million compared to last year, partly due to currency fluctuations.
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The exclusive supply agreement with Carrefour was terminated, which will result in lower volumes.
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The UK market is developing slower than expected, with interest but slow actual deployment.
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The competitive environment in Canada is increasing, posing challenges to maintaining market position.
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There is macroeconomic uncertainty impacting customer near-term investments, affecting sales growth.
Q & A Highlights
Q: Could you elaborate on the revised reporting segments and how they reflect the underlying business? A: Claes Wenthzel, Acting CFO, explained that while the product mix is important, they expect improvements in procurement. They are not making forecasts but believe the margin is good even with lower volumes.
Q: Can you explain the revenue recognition for Plaza and the volatility between quarters? A: Claes Wenthzel noted that revenue is reported consistently, with notes detailing Plaza sales. The base cost for Plaza is improving with increased volumes, enhancing margins. Magnus Larsson, CEO, added that some retroactive invoicing from large rollouts in Q4 affected Q1 figures, though this impact is minor.
Q: What are the main drivers behind the impressive gross margin in Q1? A: Magnus Larsson stated it's a combination of improved sourcing, product mix, and pricing power. They have maintained pricing and defended margins, with changes in product families contributing to higher volumes and margins.
Q: Is there any impact on gross margin from sourcing, shipping costs, or input prices? A: Claes Wenthzel mentioned that while freight is part of the cost of goods sold, it's a small portion. Magnus Larsson added that they've shifted from air freight to shipping, which has not been a major driver yet.
Q: Are there additional upsides with the Sobeys agreement, considering their 1,500 store network? A: Magnus Larsson expressed optimism about tangible upsides, noting that the agreement with Sobeys is a positive sign and creates interest from other potential customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
