StrongPoint: EBITDA beat on stronger gross margin - ABG
* Q1 EBITDA NOK 10m vs ABGSCe NOK 4m * Pricer transition temporary drag, offset by Vusion momentum * Stronger gross margin to lift estimates somewhat
ANNONS
Q1: EBITDA of NOK 10m vs ABGSCe NOK 4m
Sales were mostly flattish y-o-y, driven by strong growth in the UK & Ireland and Span, which grew 93% and 13%, respectivley. Other markets were generally down. Total revenues came in at NOK 342m, vs our NOK 356m. GP was +3% vs. our estimate, driven by a very strong gross margin of 45% (ABG 42.0%). EBITDA came in at NOK 10m vs. ABGSCe NOK 4m, on higher gross margin and 1% lower opex. The EBITDA margin landed at 2.9% (vs. ABGSCe 1.2%). This is flat y-o-y (Q1'25 2.9%). EPS came in at NOK -0.19 vs. ABGSCe NOK -0.16. Net debt came in at NOK 91m. No changes on outlook: StrongPoint states that they see continued improvement in both EBITDA and recurring revenue. The long term ambitions are healthy revenue growth and an EBITDA margin >10%.
Pricer transition temporary drag, offset by Vusion momentum
The phase-out of Pricer-related recurring revenue (NOK 52m in 2025) will weigh on near-term financials through 2026. However, the Vusion partnership has already delivered NOK 90m in installation revenue and NOK 19m gross profit in 2025, partially offsetting the ~NOK 26m gross profit lost from Pricer. Management views the transition as strategically positive, expanding the addressable market beyond traditional ESLs to include battery-less labels, shelf-edge cameras and retail media infrastructure, while enabling cross-selling and integrated picking solutions leveraging Vusion's capabilities.
Below we provide some recent highlights from the new partnership:
* Installation services growth in UK: Vusion ESL installation services in the UK grew +186% y-o-y in Q1, which was a driver of the 93% revenue growth in UK & Ireland and the 52% increase in UK service revenue.
* Spain hardware traction: Spain's 13% revenue growth was driven primarily by Vusion ESL hardware sales (partially offset by lower CashGuard sales).
* Quantified Pricer drag: The Pricer phase-out cost NOK 10m in recurring revenue in Q1 alone, with the full 52 MNOK base set to wind down to zero by end of 2026 (so ~10m/quarter is a reasonable run-rate assumption for the remaining drag).
Stronger gross margin to lift estimates somewhat
Stronger gross margin and slightly lower opex should mechanically lift FY estimates, partly offset by the somewhat softer topline. Net-net, we expect only modest changes to estimates.
