Strong cash flow and improved operating profit
July-
- Net sales amounted to
SEK 923 million (944). In the comparison period, distribution agreements that have now been terminated contributed to net sales ofSEK 47 million . -
EBITDA, before items affecting comparability, amounted to
SEK 58 million (50), corresponding to a margin of 6.3 percent (5.3) and EBITDA amounted toSEK 49 million (47). -
Operating profit/loss, before items affecting comparability, amounted to
SEK 18 million (10), corresponding to a margin of 2.0 percent (1.1) and the operating profit/loss amounted toSEK 9 million (-468). Items affecting comparability ofSEK -9 million (-478) were included in the operating profit/loss. -
The profit/loss for the period amounted to
SEK -18 million (-478), corresponding to earnings/loss per share ofSEK -0.12 (-6.57) before and after dilution. -
Cash flow from operating activities amounted to
SEK 87 million (29).
January-
- Net sales amounted to
SEK 2,790 million (2,872). In the comparison period, distribution agreements that have now been terminated contributed to net sales ofSEK 144 million . -
EBITDA, before items affecting comparability, amounted to
SEK 157 million (146), corresponding to a margin of 5.6 percent (5.1) and EBITDA amounted toSEK 129 million (137). -
Operating profit/loss, before items affecting comparability, amounted to
SEK 38 million (25), corresponding to a margin of 1.4 percent (0.9) and the operating profit/loss amounted toSEK 10 million (-459). Items affecting comparability ofSEK -28 million (-484) were included in the operating profit/loss. -
The profit/loss for the period amounted to
SEK -56 million (-486), corresponding to earnings/loss per share ofSEK -0.39 (-6.68) before and after dilution. -
Cash flow from operating activities amounted to
SEK 186 million (75).
COMMENT BY THE CEO
We took clear steps in the right direction in the third quarter, despite a challenging market situation. Net sales decreased by 2 percent to
Improved gross margin
The gross margin, before items affecting comparability, increased to 25.7 percent (23.6) supported by price increases and the discontinuation of unprofitable products and brands, but was partly counteracted by continued high operating expenses for input and completed goods. In addition, the product mix was unfavourable with a relatively higher proportion of contract manufactured products with generally lower margins. Our cost of materials remain high, both due to continuing high prices for raw materials, as well as unfavourable exchange rate trends for both the SEK and NOK against the USD and EUR alike.
Implemented measures improved earnings
In the Nordics, profitability remained strong with an improved, double-digit EBITDA margin, despite currency headwinds and terminated distribution agreements, as well as larger sequential long-term investments in our own brands. The earnings were mainly a consequence of a favourable trend for most of our own brands, as well as a successful change process in the Danish market. We face challenges in North and
New innovative market concept to increase sales
Our new innovative market concept, "Shortcut to a good deed" is one of our long-term marketing initiatives aimed at increasing sales of our own organic brands in the organic products category. The concept has been launched for Kung Markatta in
Strong free cash flow
Substantial focus has been placed on reducing working capital and improving cash flow. In fixed currencies, inventories have been reduced by more than
We move forward strengthened
I remain certain that the long-term prospects for our healthy and sustainable options are positive. We continue to work in accordance with our long-term plan for our brands to be relevant even when consumers tighten their purse strings. To improve our position, we will also implement the necessary cost savings and continue to optimise our working capital. Strengthened by the effects achieved through the measures we have implemented to date; we look ahead with confidence.
Peter Åsberg
President and CEO
For more information, please contact:
Peter Åsberg, CEO and President
Phone: +46 730 26 16 32
E-mail: peter.asberg@midsona.com
Max Bokander, CFO
Phone: +46 708 65 13 64
E-mail: max.bokander@midsona.com
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