Slide 1: Midsona Interim Report Quarter 1, 2024
Midsona Interim Report Quarter 1, 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: Q1 2024 summary and financial highlights
Q1 2024 summary and financial highlights Summary Financial highlights Net sales EBIT1 EBIT1 margin • Strongly improved EBIT SEK 929 m SEK 38 m 4,1% • Gross Profit margin strengthened considerably (SEK 974 m) (SEK 21 m) (2,2%) -4,6% change +81% +1,9 p.p. • Net Sales negatively impacted by Easter effe
Slide 4: Division highlights
Division highlights Division Nordics ● Division Nordic stays strong 24 23 vs PY ● Improved EBIT and EBIT-margin Net Sales 602 647 -7% ● Net Sales decline explained by discontinued licensed brands 64% EBIT1 56 52 +8% ● Gross profit improvements driven by pricing and production efficiency Division Nor
Slide 5: Gross margin (GM) management
Gross margin (GM) management GM1 improvement (vs YA) Status • Select price increases • Improved production efficiency in Mariager and Tilst plants Nordics • Discontinuation of low margin Private Label contracts (mainly Denmark) • Discontinuation of low margin licensed brands • Select price increases
Slide 6: Portfolio highlights
Portfolio highlights Organic products ● Growth -2%, sales slightly ahead of previous year considering Easter effect ● Strong growth for brand Helios 55% ● Private label continues to grow strongly driven by buoyed customer and consumer demand. Health foods ● Growth -3%, sales slightly ahead of previo
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
New Strategy A growth and purpose centered Culture and organisation Our Focus NZ Organic & healthy food © Win with our brands we & Selected geographic markets Our Strategy One organic powerhouse Efficiency and harmonisation Grow and expand our health brands Our Goal Vision: European leader in health
Slide 9: Continued progress on sustainability
Continued progress on sustainability 9
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 Q1
Financial Summary Q1 MSEK Q1 2024 Q1 2023 Comments QTD Net Sales 929 974 GM%1 29,0 26,3 • Net Sales -4,6% vs LY EBIT1 38 21 • GM% +2,7 p.p. vs LY 1 EBIT% 4,1 2,2 Items Affecting Comparability (IAC) 0 -5 • EBIT +17M (+81%) vs LY Net financing costs -14 -14 EBT 24 2 • Net Result +22M vs LY Net tax cos
Slide 12: Q1 Net Sales
Q1 Net Sales MSEK Net Sales change Organic growth by brand type Impacted by -0,5% discontinued % of NS distribution contract with 17M in sales Own Brands - consumer -4,3% 63% during Q1-23 -4,2% +0,1% Own Brand - B2B -2,5% 7% Impacted by discontinued Licensed Brands-9,5% distribution contract 17M 10%
Slide 13: Q1 EBIT
Q1 EBIT1 MSEK MSEK QTD Over time 80 71 GM +2,7 70 p.p. Improve ment 60 56 driven by better 50 price net and better 40 38 efficiency in factories 30 22 21 20 10 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 202
Slide 14: Q1 Cash Flow from operating activities
Q1 Cash Flow from operating activities MSEK NWC - 46M in cash effect MSEK But 137M lower than LY QTD Over time Depreciation 12M Inventory Amortization 12M 95M lower Lease than LY depreciation 15M Other 5M 82 21 10 -8 -19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1 2020 2020 2020 2020 2021 2
Slide 15: Available cash and Net Debt
Available cash and Net Debt MSEK Available Cash MSEK Net Debt and X Net Debt / adj. EBITDA2 900 Over time 25% Over time 2 000 7,4 7,4 8 800 778 1 800 1 717 7 740 20% 6,2 700 20% 708 1 600 1 584 1 628 651 1 464 1 452 1 475 6 19% 1 436 600 18% 626 1 400 1 411 17%17% 1 310 1 352 4,9 4,7 5 543 15% 1 200
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