Slide 1: Midsona Interim Report Quarter 4, 2024
Midsona Interim Report Quarter 4, 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 un
Slide 3: Full Year 2024 summary and financial highlights
Full Year 2024 summary and financial highlights Summary Financial highlights Net sales EBIT1 EBIT1 margin • EBIT more than doubled SEK 3 727 m SEK 128 m 3,4% • Planned and necessary complexity reduction resulted in (SEK 3 793 m) (SEK 60 m) (1,6%) slight negative net sales growth -0,7% organic change
Slide 4: Q4 2024 summary and financial highlights
Q4 2024 summary and financial highlights Summary Financial highlights Net sales EBIT1 EBIT1 margin • Improved EBIT SEK 961 m SEK 36 m 3,7% • Complexity reduction. Stepped out of unprofitable (SEK 1 003 m) (SEK 22 m) (2,2%) Christmas sales -3,4% organic change +14 m +1,5 p.p. • Gross Profit margin st
Slide 5: Portfolio highlights
Portfolio highlights Organic products ● Organic growth of 5% ● Strong growth for brands Helios. Step-change for Urtekram Beauty Care as production issues were solved 55% ● Private label continues to grow strongly driven by buoyed customer and consumer demand. Health foods ● Organic growth of -17% ●
Slide 6: Division highlights
Division highlights Division Nordics ● Declining sales due to exit of unprofitable Christmas contracts 2024 2023 vs PY ● Temporarily increased marketing investments in some Nordic countries to Net Sales 632 686 -8% support 2025 launches 66% EBIT1 52 55 -5% ● Mixed picture for organic products. Solid
Slide 7: 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 Christmas sales • Discontinuation of low margin licensed brands • Price management • Improved production efficiency in
Slide 8: In 2024 we presented a new strategy ……
In 2024 we presented a new strategy …… 8
Slide 9: …. and updated our Financial Targets
…. and updated our 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 special
Slide 10: We set a new organizational structure
We set a new organizational structure CFO CEO Legal Director Max Bokander Peter Åsberg 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 Geographical focus Geographical
Slide 11: Time for CEO Succession
Time for CEO Succession •I, Peter Åsberg, will leave my position as President and CEO of Midsona AB •I will remain in the CEO role under a transition period until a successor has taken office. •A suitable time to change • Solid foundation in place • Good progress in 2024
Slide 12: Priorities 2025
Priorities 2025 •Consistent brand driven growth •Increase production output to fully meet demand •Operational efficiency •Sourcing efficiency •Cash flow focus •Continued progress on sustainability
Slide 13: Financial review CFO Max Bokander
Financial review CFO Max Bokander
Slide 14: Financial Summary
Financial Summary MSEK Q4 2024 Q4 2023 FY 2024 FY 2023 Comments QTD Net Sales 961 1 003 3 727 3 793 GM%1 28,9% 25,4% 28,7% 25,9% • Net Sales -4,1,% vs LY 1 EBIT 36 22 128 60 EBIT%1 3,7% 2,2% 3,4% 1,6% • GM% +3,5 p.p. vs LY IAC 0 -3 0 -31 Net financing costs -12 -15 -53 -64 • EBIT +14 m vs LY (+64%)
Slide 15: Q4 Net Sales
Q4 Net Sales MSEK Net Sales change Organic growth2 by brand type 1010 1003 1000 % of NS 990 Own Brands - consumer -6,2% 59% 980 970 961 Own Brand - B2B-12,8% 6% 960 950 940 -0,7% -3,4% 0,0% Private Label 3,7% 24% 930 920 -4,1% Licensed Brands 7,3% 11% 910 900 2023 Structure1 Organic 2 FX 2024 1) Div
Slide 16: Q4 EBIT1
Q4 EBIT1 MSEK MSEK EBIT1 change EBIT1 trend 40 140 36 32 0 35 120 GM +3,5 36 30 p.p. -7 -1 100 25 22 80 20 22 15 60 10 40 5 5 -11 20 +14M (+64%) 0 -5 0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Volume Sales & Admin FX 2023 Gross Margin Other 2024 QTD R12 1) Before items
Slide 17: Q4 Cash Flow from operating activities
Q4 Cash Flow from operating activities MSEK MSEK QTD Cash flow1 breakdown Cash flow1 trend 180 400 160 22 160 157 350 140 140 55 128 300 120 120 98 100 100 98 250 -50 80 200 3 80 60 13 40 150 60 31 Depreciation 20 12m 100 40 Amortization 12m NWC 27m in cash effect 0 24 Other 7m 50 20 -20 -40 0 0 Q4
Slide 18: Available cash and Net Debt
Available cash and Net Debt MSEK Available Cash MSEK Net Debt and X 800 18% 20% 900 Net Debt / adj. EBITDA2 5,0 740 17% 17% 18% 700 708 4,5 800 774 773 651 626 628 16% 4,4 721 4,0 600 700 575 575 678 14% 3,5 507 600 500 12% 543 3,0 446 525 500 496 501 400 10% 451 2,5 2,7 400 8% 2,0 300 300 619 612 6
Slide 19: Q&A
Q&A