Pricer: Ends 2022 on a record-high level - ABG

Q4 sales of SEK 696m were 8% above ABGSCe
With its strong order backlog and recent production data from ESL supplier E Ink, the outlook for improved deliveries in Q4 was good. Pricer capitalised well on these prospects, with sales +43% y-o-y, to SEK 696m, 8% above ABGSCe of SEK 642m. Meanwhile, orders continued to rise, growing 43% y-o-y (+6% vs. ABGSCe). In terms of regions, Canada and France remained strong, supported by previously won framework agreements (e.g. Carrefour and CTDA), but smaller customers also contributed to the growth: we argue that the breadth bodes well for more growth. That said, the gross margin of 15.5% (ABGSCe 16.5%) contracted from 16.6% in Q3, with continued headwinds from elevated freight rates, FX, and an unfavourable customer mix. Given recent FX movements (mainly EUR/USD), lower freight rates (-80% from the peak), and cheaper input prices, we expect gross margins to trough at current levels, and expand to 17% in '23e. EBIT of SEK 28m was well above ABGSCe of SEK 13m, but as this also included an FX revaluation of balance sheet items of ~SEK 24m, the beat was low quality.