Slide 1: Midsona Interim Report Quarter 2, 2024
Midsona Interim Report Quarter 2, 2024
Slide 2: Forward-looking statements
This presentation may contain forward- looking statements. Such statements are based on current expectations and are subject to risks and uncertainties that could negatively affect our business. Please refer to our 2023 annual and sustainability report for a better understanding of these risks and u
Slide 3: Q2 2024 summary and financial highlights
Q2 2024 summary and financial highlights Summary Financial highlights Net sales EBIT1 EBIT1 margin • Organic growth of +3% SEK 918 m SEK 22 m 2,4% • Complexity reduction (SEK 893 m) (SEK -1 m) (-0,1%) -+2,8% change +23m +2,5 p.p. • Strongly improved EBIT • Gross Profit margin strengthened considerab
Slide 4: Division highlights
Division highlights Division Nordics ● Division Nordic flat sales 24 23 vs PY ● Friggs continued to grow. Challenges for organic products Net Sales 591 593 -0% ● Improved EBIT and EBIT-margin 64% EBIT1 38 31 +23% ● Gross profit improvements driven by pricing and production efficiency Division North
Slide 5: Gross margin (GM) management
Gross margin (GM) management GM1 improvement (vs YA) Status • Price management • Improved production efficiency in Mariager and Tilst plants Nordics • Discontinuation of low margin Private Label contracts (mainly Denmark) • Discontinuation of low margin licensed brands • Price management • Improved
Slide 6: Portfolio highlights
Portfolio highlights Organic products ● Growth 7% ● Strong growth for brand Helios 54% ● Private label continues to grow strongly driven by buoyed customer and consumer demand. Health foods ● Growth -4% ● Growth for brand Friggs. 29% ● Private label decline due to exit of low margin contracts Consum
Slide 7: New Financial Targets
New Financial Targets Profitable growth Higher margins 3-5 % >8% Organic sales growth Group EBIT1 margin by year-end 2027 Brands >5% • Increased sales share of own brands • Midsona consumer brands stands for ~ 60% of company • Strong cost synergies from group-wide sourcing and specialised sales (202
Slide 8: New Strategy
A growth and purpose centered New Strategy Our Focus Our Strategy Our Goal Our Mission Vision: & eZ Organic « healthy food European leader in healthy and sustainable foods 5 One organic 2 powerhiouse 4 6 Efficiency and z Win with our brands harmonisation 2 we Our financial targets: El 7 We provide h
Slide 9: The new management team
The new management team CEO Peter Åsberg CFO Legal Director Max Bokander Tora Molander HR Director Åsa Gavelstad Nordics North Europe South Europe (68% of Net Sales) (22% of Net Sales) (10% of Net Sales) Markus Wessner Heiko Hintze Marjolaine Cevoz-Goyat Marketing & • Global Geographical focus Geogr
Slide 10: Financial review CFO Max Bokander
New cut-through concept for our organic brands Financial review CFO Max Bokander 10
Slide 11: Financial Summary Q2
Financial Summary Q2 MSEK Q2 2024 Q2 2023 YTD 2024 YTD 2023 Comments QTD Net Sales 918 893 1 847 1 867 GM%1 28,9% 26,4% 28,9% 26,4% • Net Sales +2,8% vs LY EBIT1 22 -1 60 20 • GM% +2,5 p.p. vs LY EBIT%1 2,4% -0,1% 3,2% 1,1% IAC 0 -14 0 -19 Net financing costs -14 -15 -28 -29 • EBIT +23m vs LY and EB
Slide 12: Q2 Net Sales
Q2 Net Sales MSEK Net Sales change Organic growth2 by brand type % of NS +0,4% +2,7% Own Brands - consumer -1,8% 63% Own Brand - B2B 4,2% 7% -0,3% Licensed Brands 23,6% 10% Private Label 10,2% 20% 1 2 1) Divested brands Kan Jang and Artic Root 2) Sales growth adjusted for changes in exchange rate an
Slide 13: Q2 EBIT1
Q2 EBIT1 MSEK MSEK EBIT1 change EBIT1 trend 45 120 40 Investment 100 GM +2,5 35 in direct p.p. selling and marketing 30 Improvement driven by 80 better price 25 net and 22 improved PL profitability 20 60 15 10 40 5 0 20 -1 -5 -10 -7 0 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q
Slide 14: Q2 Cash Flow from operating activities
Q2 Cash Flow from operating activities MSEK MSEK QTD Cash flow1 breakdown Cash flow1 trend 180 400 160 350 NWC - 61M in cash effect, 140 but balance 90m lower than LY 300 120 Depreciation 12m 100 250 Amortization 12m 80 Inventory 200 Lease value depreciation 60 54 14m 687m Other -3m (741m) 40 150 54
Slide 15: Available cash and Net Debt
Available cash and Net Debt MSEK Available Cash MSEK Net Debt and X 800 20% 1 600 Net Debt / adj. EBITDA2 8 740 18% 1 475 700 708 1 452 1 400 7,4 7 651 15% 16% 626 600 575 1 200 6 14% 12% 500 12% 507 12% 1 000 5 470 446 434 400 10% 4,7 800 4 774 773 721 8% 1 311 678 1 299 300 600 3 543 6% 496 501 20
Slide 16: 2024 focus
2024 focus 1. Drive our core brands - Activate our brands with focus on high profit items - Find new business opportunities for our core brands (listings, new customers) 2. Simplification via SKU reduction Q&A - Complexity reduction project. Will discontinue nonperforming brands and products 3. EBIT