- Q1 sales at €39.1m (+18.8% vs. Q1 2016)
- Order intake for Q1 of €41m (-5%)
SES-imagotag (Euronext: SESL, FR0010282822), a specialist in digital solutions for physical commerce and global leader in connected digital price tags, today announced its sales for the first quarter of 2017.
|In the first quarter of 2017, SES-imagotag generated sales of €39.1m, up +18.8% compared to Q1 2016, boosted by international sales. Order intake during the first three months of the year stands at €41m, slightly down compared to the same period of 2016, due to longer than expected decision cycles, and despite increasing interest in the digitization of stores across the world. For the full year 2017, SES-imagotag is maintaining its objective to exceed €200m in sales, with growth principally concentrated on the second half of the year.|
In France, sales for SES-imagotag stand at €14.1M, slightly down by -3% over one year, after unprecedented growth in 2016 (+59%). The Group continued with the modernization of its large installed base and started implementation of the recent contract signed with central purchasing organization INCA-A (Intermarché and Casino). Furthermore, several new retail chains are in the pilot phase. The number one market in the world for digital price tags, both demanding and competitive, where SES-imagotag is markedly investing in innovation and quality of service.
International sales for the first quarter of 2017 stand at €25m, up +36.6%. Growth was mainly driven by Europe, the continent with the greatest incentive for the digitization of points of sale due to labor costs and the intensity of retail pricing competition. Business was especially strong in Germany due to the conclusion of the large contract signed at the end of 2015.
In Asia, the quarter was principally marked by the legal finalization of the acquisition of Pervasive Displays Inc. (PDi) in Taiwan mid-February. The increase in the Group's presence and geographical coverage is under way with advanced partnership discussions in China and Japan, as well as the launch of first pilots in these two countries.
In North America, the number of installations in the United States increased in the electronics and appliances sector (nearly 200 stores installed or signed at the end of April). However, the preferred economic rental model (“ESL as a Service”) in this region has slowed down the initial impact on sales.
Order intake for the first quarter of 2017 stands at €41m, slightly down compared with the first quarter of 2016 (€43m). The pressure on retailers' margins across the world is slowing down investment decisions in some cases, particularly at the beginning of the year. Nonetheless, an increase in order intake is expected in the second quarter.
The beginning of the year saw many industry events, particularly as a result of the Group's participation in numerous global trade shows for the retail industry, such as NRF in New York, EuroShop in Düsseldorf, World Retail Congress in Dubai and C-Star in Shanghai.
Thierry Gadou, Chairman and CEO of the SES-imagotag group, commented as follows on the performances of the first quarter and the outlook for the Group: "This first quarter was in line with our expectations, given the exceptional growth seen in 2016. The commercial pipeline is solid, in Europe of course, but also in the rest of the world where the digitization of stores is starting to become a very important matter for large retailers. Therefore, we remain confident with regard to our objective of €200m in 2017, with growth concentrated in the second half of the year. The integration of Findbox and PDi is currently under way and advancing in line with the market plan. In particular, on the product front, these two acquisitions will enable us to launch significant new developments at the end of the year.”
SES-imagotag is a specialist in digital solutions for physical commerce and a global leader in electronic labeling systems. The Group designs and markets all the components of its solutions (software, radio-frequency infrastructure, labels and mounts), thus providing its clients with a turnkey solution. The range of products and services offered by SES-imagotag allows retailers to manage pricing dynamically, to improve in-store productivity and develop new contactless uses for shoppers.
SES-imagotag is listed on compartment B of Euronext™ Paris
Mnemo code: SESL - isin code: FR0010282822 - Reuters: SESL.PA - Bloomberg: SESL
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