Midsona Ab Class A · OMXSTO:MSON_A
Midsona Ab Class A — Q2 2023 Earnings Presentation
19 slides from Midsona Ab Class A's earnings presentation, 2023
Slide 1: Midsona Interim Report Quarter 2, 2023
Midsona Interim Report Quarter 1 2, 2023
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 2022 annual and sustainability report for a better understanding of these risks and un
Slide 3: Summary of Q2 2023 and financial highlights
Summary of Q2 2023 and financial highlights Summary Financial highlights Net sales EBITDA1 EBITDA1 margin ● Net Sales negatively impacted by SEK 893 m SEK 39 m 4,4% discontinued distribution agreements. (SEK 956 m) (SEK 34 m) (3,6%) ● Stable to good demand for our conventional -6,6% change +14,7% +0
Slide 4: Measures to turn around
Measures to turn around … and create opportunities ahead Price increases Cost savings Efficient assortment Volume focus ● A number of non-performing ● Driving our well-performing ● Price increases fully ● Cost saving programme aiming brands have been discontinued conventional brands implemented acco
Slide 5: Price management: Back to pre-war levels
Price management: Back to pre-war levels GM Gap Closing (vs YA) 2023 status Pricing initiatives Q2 Q2 ● Price increases implemented in all markets during Q1 and Q2 2023 ● Gross margin clearly up vs PY, but still not at target levels ● New price increases are being considered Q1 Q2 2023 Cost of goods
Slide 6: Portfolio highlights
Portfolio highlights Organic products ● Growth -2% ● Stabilization for own brands supported by price increases 52% ● Private label continues to grow strongly driven by buoyed customer and consumer demand. Healthfoods ● Growth +3% ● 19% growth for Friggs. 32% ● Stable demand for other key brands ● Pr
Slide 7: Division Highlights
Division Highlights Division Nordics ● Net Sales decline solely explained by discontinued licensed brands ● Friggs is the shining star. Growth of +19% in q2. 23 22 vs PY Net Sales 593 657 -10% ● Gross profit improvements but off target due to negative Fx effects 66% EBITDA** 45 39 +15% ● Successful
Slide 8: New cut-through concept for our organic brands
New cut-through concept for our organic brands Example: Kung Markatta
Slide 9: New cut-through concept for our organic brands
New cut-through concept for our organic brands Example: Urtekram
Slide 10: Forward focus
Forward focus 1. Selective price increases We see margin improvement in Q2, but we are still not back to 2021 levels. Accordingly, we will selectively increase prices in certain and maintain in other markets, 2. Volume focus - Activate our brands with focus on high profit items - Find new business o
Slide 11: Financial review
Financial review CFO Max Bokander
Slide 12: Financial Summary
Financial Summary MSEK Q2 2023 Q2 2022 YTD 2023 YTD 2022 Comments QTD Net Sales 893 956 1 867 1 928 • Net Sales – 6,6% GM%* 26,4 23,6 26,4 24,9 EBITDA* 39 34 99 96 • GM +2,8 p.p. EBITDA%* 4,4 3,6 5,3 5,0 • EBITDA +5M IAC** -14 -6 -19 -6 • IAC; QTD restructuring cost 14M linked to Net financing costs
Slide 13: Q2 - Net sales
Q2 - Net sales MSEK Net Sales change Organic growth by brand type % of NS Impacted by discontinued distribution Own Brands -3,2% 74% contract 66M +4,4% in sales (Q2-22) Impacted by discontinued -11,0% Licensed Brands -49,2% distribution contract 66M in 9% sales (Q2-22) -6,6% Private Label -6,2% 17%
Slide 14: Q2 - EBITDA
Q2 - EBITDA * MSEK MSEK GM +2,8 p.p. Improvement QTD driven by price increases Other 97 Includes a 2,5M provision for 78 a bad debt 59 39 34 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 * Before Items Affectin
Slide 15: Q2 - Sales, Marketing & Admin Expenses
Q2 - Sales, Marketing & Admin Expenses* MSEK 5% lower personnel Higher costs for expenses vs LY insurance fees, savings from external restructuring services etc. more than compensated offsetting by strict cost inflation control 8M improvement excl FX-translation * Before Items Affecting Comparabilit
Slide 16: Q2 - Free Cash Flow
Q2 - Free Cash Flow MSEK MSEK QTD 84 75 53 8 Net inventory ~ 170M lower than June LY (@ constant FX rates) -35 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 * 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 * Before Items Affecting Comparability 16
Slide 17: Available cash and Net Debt
Available cash and Net Debt MSEK MSEK 1 200 40% Available Cash Net Debt 1 109 RCF limit; 37% 35% reduced with 1 717 1 000 250M per end 1 628 of June 2023 1 584 30% 1 475 1 411 1 436 1 464 1 452 1 402 800 1 328 1 353 1 352 778 1 310 740 25% 1 237 708 600 20% 525 20% 543 501 19% 486 470 18% 774 773 17
Slide 18: Outlook 2023
Outlook 2023 Reaching higher • Selective price increases going forward to offset negative Fx effects. • Volume focus. - Getting key brands back on the growth track - Secure profitable Private Label contracts • Continued cost savings • Complexity reduction 18
Slide 19: Q&A
Q&A ? 19