Record-strong free cash flow and continued improvement in margins
October-
- Net sales amounted to
SEK 1,003 million (1,027). 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 60 million (45), corresponding to a margin of 6.0 percent (4.4) and EBITDA amounted toSEK 57 million (39). -
Operating profit/loss, before items affecting comparability, amounted to
SEK 22 million (5), corresponding to a margin of 2.2 percent (0.5) and the operating profit/loss wasSEK 19 million (-6). Items affecting comparability ofSEK -3 million (-11) were included in the operating profit/loss. -
Profit/loss for the period was
SEK 3 million (-15), corresponding to earnings per share ofSEK 0.03 (-0.19) before and after dilution. -
Cash flow from operating activities amounted to
SEK 157 million (128).
January-
- Net sales amounted to
SEK 3,793 million (3,899). In the comparison period, distribution agreements that have now been terminated contributed to net sales ofSEK 191 million . -
EBITDA, before items affecting comparability, amounted to
SEK 217 million (191), corresponding to a margin of 5.7 percent (4.9) and EBITDA amounted toSEK 186 million (176). -
Operating profit/loss, before items affecting comparability, amounted to
SEK 60 million (30), corresponding to a margin of 1.6 percent (0.8) and the operating profit/loss amounted toSEK 29 million (-465). Items affecting comparability ofSEK -31 million (-495) were included in the operating profit/loss. -
The profit/loss for the period amounted to
SEK -53 million (-501), corresponding to earnings per share ofSEK -0.36 (-6.73) before and after dilution. -
Cash flow from operating activities amounted to
SEK 343 million (203). - The Board of Directors proposes that no dividend be paid for 2023.
Comment by the CEO
During the fourth quarter, we continued to take vital steps in the proper direction and were able to see clear results of our efforts, especially in improved margins and a record-strong free cash flow. We are therefore entering 2024 strengthened.
Friggs had strong development and organic food expanded
Net sales decreased by 2 percent to
Gross margin improved by optimised product portfolio
The gross margin, before items affecting comparability, improved to 25.4 percent (22.6) after implemented price increases and rationalisation of the product portfolio. Efforts to optimise and simplify the product portfolio continued, with the phasing out of unprofitable products and termination of some unfavourable contract manufacturing agreements. Two smaller, non-strategic brands were also divested. However, the positive margin trend was offset in part by a continued weak exchange rate trend for the SEK and NOK against the important EUR and USD currencies for the majority of the period. Both the SEK and NOK began to strengthen against both the EUR and USD in December, but did not have time to have any effect on the margin during the quarter. The price scenario was stable for most input and finished goods, although at continued high price levels. Our business is now more robust overall and efforts to optimise the product portfolio continue.
Nordics remains a driving force
Nordics continued to show good profitability, with very strong improvement in
we have launched the concept for Kung Markatta and Urtekram. Unfavourable currencies continued to be a challenge and had a negative impact on performance, particularly in
During the quarter we continued to address the challenges we face in
For
For the Group, EBITDA before items affecting comparability improved to
Record-strong free cash flow
During the quarter, active measures to reduce working capital and improve cash flow took effect. Capital tied up in inventories decreased by
Cautious optimism for 2024
To further strengthen our position, we will continue to harmonise our range through a reduced number of items and by renegotiating unprofitable contracts and divesting nonstrategic brands. We have already seen positive effects of changes to the product range, which means we have a stable base from which to work. In addition, raw material prices have stabilised and the currency has started moving in a favourable direction. Several studies show that people want to eat healthily and sustainably. With a strategy and business concept based on a passion for healthy, natural and sustainable food, sustainability is an integral element of our business. As inflation subsides and any interest rate cuts are implemented, I confidently look forward to more affluent consumers who can pay for sustainable alternatives. Overall, I am cautiously optimistic about the general market situation and
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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