Organic and acquired sales growth with significantly improved EBITDA margin
April-
· Net sales amounted to
· EBITDA amounted to
· Profit for the period amounted to
· Free cash flow amounted to
· Gainomax, a leader in sports nutrition, was acquired.
· As a result of Covid-19, Midsona experienced continued raised demand for its organic products in several geographic markets, but also some supply chain disruption.
January-
· Net sales amounted to
· EBITDA amounted to
· Profit for the period was
· Free cash flow amounted to
Significant event following the end of the report period
· Max Bokander was appointed as Midsona's new CFO.
Comment by the CEO
Strong earnings in unusual times, healthy trends here to stay
The ongoing Covid-19 pandemic continued to affect operations in the second quarter. Unlike the first quarter, in which the effects were predominantly positive, the effects in the second quarter were mixed. We believe, however, that the pandemic has helped increase interest in healthy choices in what seems to be a durable way. With consumers demanding healthier products, we have experienced highly favourable development, particularly among our organic brands. During the quarter, we secured new listings among several leading FMCG players in the key German, French and Spanish markets, and gradually achieved a breakthrough among consumers with our new platform for our Nordic organic brands. Towards the end of the quarter, sales normalized at higher levels and, for the Group as a whole, sales rose by 22 percent compared with the corresponding period last year.
Mixed effects of the pandemic
Early in the quarter, we experienced a continued increase in demand as people increased their at-home consumption due to the pandemic. The greater the extent of the lock-down, the greater the increase in sales. As restrictions were lifted, the increase in demand abated and, in May, the hoarding phase among both customers and consumers shifted over to some phasing out of inventories, leading to a temporary reduction in sales. Nonetheless, people appear, on the whole, to have increased their consumption of Midsona's organic, healthy and natural foods over the period. Combined, these effects resulted in a very strong sales trend for
Continued strong development for priority brands
On the whole, our priority brands are showing strong organic growth: increasing by 12 percent for the quarter, with the largest growth in the organic products category. This was primarily attributable to the success of targeted measures, but also to positive effects of the pandemic. Firstly, we have been successful in rolling out a wide range of organic products in the European FMCG segment, with new listings among several leading players - the Davert brand in the DACH region grew by 38 percent and
Improved earnings and strict cost control
The strong earnings trend continued in the second quarter: EBITDA before items affecting comparability, increased by 64 percent to
Effective handling and thawing acquisition market
Overall, I am proud of how well the organisation has navigated through this health crisis. The parameters that the organisation has been able to influence have been handled extremely well. Despite some bottlenecks in production, Midsona has maintained a high pace. Although we have had some problems finding sufficient numbers of qualified production employees at short notice, through heroic efforts by existing personnel, we have managed to break previous production records at our facilities. We have fostered favourable conditions for the future and consumers have clearly demonstrated their appreciation of healthy products.
We have a strong financial position and continued to assess possible acquisitions in
Peter Åsberg, President and CEO
For more information, please contact MD and CEO Peter Åsberg, telephone +46 (0)730 26 16 32, or CFO
This is information of the type that
About
Midsona develops and markets strong brands within health and well-being, with products that help people live a healthier and more sustainable life, with an increased understanding of the origin of the raw material and with transparency as to the content. The Midsona share is listed on NASDAQ OMX Stockholm, Mid Cap. For more information www.midsona.com/en
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