Slides
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Midsona Interim Report Quarter 4, 2025
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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 2024 annual and sustainability report for a better understanding of these risks and uncertainties.
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THIS IS MIDSONA Mission: We provide healthy food for people and planet. Most of our products are plant- based or vegetarian and many are natural and organic. Vision: European leader in healthy and sustainable food. We are organized in 3 divisions with 697 employees in Sweden, Denmark, Finland, Norway, Germany, France and Spain. The company is headquartered in Malmö, Sweden and listed on Nasdaq Stockholm since 1999. 3,630 MSEK Division North Europe 25% Division South Europe 11% Division Nordics 64% (All figures FY 2025) Net sales MIDSONA’S MISSION, VISION AND DIVISIONS
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4 Q4 2025 summary and financial highlights Summary Financial highlights 1) Sales growth adjusted for changes in exchange rate and divestments or acquisitions of business and/or brands 2) Before items affecting comparability (IAC) 3) EBITDA rolling 12-months, adjusted for proforma, transaction related costs and other IAC 4) Cash flow from operating activities • Organic sales growth driven by own consumer brands which grew by 5.9%1 • Organic sales growth of own consumer brands across all three divisions • Despite a lingering negative impact from the fire in the Spanish operations • Continued strengthening of margin driven by divisions Nordic and South • A slight deterioration of Gross Margin mainly driven by timing of promotion costs and customer rebates • Materially improved efficiency fueling EBIT margin • Improved cash flow continuing to strengthen the balance sheet Net sales SEK 933 m (SEK 961 m) +0.7%1 EBIT2 SEK 47 m (SEK 36 m) +11 m EBIT2 margin 5.0% (3.7%) +1.3 p.p. Gross margin2 28.6% (28.9%) -0.3 p.p. Net debt / Adj. EBITDA3 1.1x (1.6) Improved 0.5x Cash flow4 SEK 141 m (SEK 98 m) +43 m
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5 Full Year2025 summary and financial highlights Summary Financial highlights Net sales SEK 3 630 m (SEK 3 727 m) -0.1%1 EBIT2 SEK 133 m (SEK 128 m) +5 m EBIT2 margin 3.7% (3.4%) +0.3 p.p. Gross margin2 28.5% (28.7%) -0.2 p.p. Net debt / Adj. EBITDA3 1.1x (1.6) Improved 0.5x Cash flow4 SEK 229 m (SEK 142 m) +87 m • Slight organic net sales decline albeit improved growth rate vs. prior year • Own consumer brands contributing positively with an organic growth of 1.4% • Negatively impacted by two discontinued licensed brands as well as the fire in Spain • EBIT margin growth driven by recovery in H2 • Gross margin impacted by negative sales mix and partially efficiency • Gross margin erosion compensated by improved efficiency supporting EBIT margin growth • Strong full year cash flows ending the year with a strong balance sheet • The board proposes a dividend of 0.22 SEK per share 1) Sales growth adjusted for changes in exchange rate and divestments or acquisitions of business and/or brands 2) Before items affecting comparability (IAC) 3) EBITDA rolling 12-months, adjusted for proforma, transaction related costs and other IAC 4) Cash flow from operating activities
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6 Division highlights Q4 Division Nordics Division North Division South 66% 24% 10% 2025 2024 vs PY Net Sales 618 632 -2% EBIT2 60 52 +15% 2025 2024 vs PY Net Sales 226 237 -5% EBIT2 9 13 -31% 2025 2024 vs PY Net Sales 94 102 -8% EBIT2 0 -7 n/a ● Organic sales growth of 0.7% driven by own consumer brands at +6.2% in the quarter ● Continued strong sales growth of own organic brands and own health food brands now also back in growth after the change in business model to central distribution ● Somewhat weaker grows margin driven by mix and promotion cost, mitigated by cost efficiency to strengthen EBIT margin ● Modest organic growth of 0.1% fueled by growth of own consumer brands at +3.3% ● Own B2B brands with organic decline of 13.2% as a result of the transition to a more profitable assortment and business model ● Gross margin weakened as a result mainly of timing of promotion costs and customer rebates which was not fully offset by the improved cost control ● Organic sales decline of 3.1% largely driven by lower contract manufacturing in Spain following the fire ● Own consumer brands grew by 6.4% with strong growth in French grocery trade ● Materially improved gross margin driven by considerably improved efficiency as well as sales mix 1) Sales growth adjusted for changes in exchange rate and divestments or acquisitions of business and/or brands 2) Before items affecting comparability (IAC)
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7 Portfolio highlights Q4 Organic products Health Foods Consumer Health products 56% 29% 15% ● Total organic growth at +3.2% ● Own organic brands driving the growth with 7.8% organic growth in the quarter – marketing and innovation initiatives in the organic portfolio paying off ● Somewhat weaker growth on contract manufacturing, partly impacted by fire in Spain, and on B2B sales in Germany as a part of the ongoing transition ● Back in organic growth at +0.3% ● New business model for one brand, going from direct to central distribution in Nordics, fully implemented and now contributing positively ● Contract manufacturing in sales decline as we optimize for profit ● Organic sales decline of 6.8% ● Some lingering negative impact from the discontinued distribution of a licensed brand ● Weak start to the flu season impacting sales of remedial products negatively in the quarter 1) Sales growth adjusted for changes in exchange rate and divestments or acquisitions of business and/or brands
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Continuing to develop products and brands for growth Friggs – continuing the growth Friggs extended the taste profile further with a paprika flavored corn cake range. Revitalizing the offering to local taste preferences while creating product excitement is a key criteria for continued success for Friggs, and the launch was off to a strong start. Urtekram Beauty – new range With inspiration from the Nordic heritage and nature Urtekram Beauty launched a new line of Hair and Body care products with the Nordic Berry range. This is aimed at further fueling the considerable international growth, leveraging a strong digital and e-commerce presence. Optimized organic assortment An ongoing effort to optimize the assortment across the Nordic organic brands continued to pay off with materially improved revenue per item across the range. This enhances the impact in store and on shelf as well as contributes to supply chain efficiency. 8 2024 2025 Revenue per item in Q4
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9 Gross margin (GM) management Q4 GM1 (vs YA) Status Nordics North South 1) Before items affecting comparability • Healthy product mix and margin management as well as production efficiency contributing positively • Y-o-y decline largely explained by category mix and a somewhat increased promotional cost • Sales mix continued to impact positively with a growth of own consumer brands and a reduction in parts of less profitable B2B sales • The decline is largely explained by of timing of promotion costs and customer rebates impacting the margin negatively in the quarter • Negative development partially mitigated by improved production efficiency • Materially positive impact from sales mix with a growth of own brands and decline in contract manufacturing , linked to the fire in Spain • Improved production efficiency in France as well as in the remaining Spanish operation impacting positively
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Update on restructuring program to accelerate margin improvement 10 Restructuring program launched in Q4 to support margin growth towards financial target ▪ Continued profitable growth and strengthened gross margin obviously a key driver to achieve the targeted profitability improvement ▪ However, optimized cost structure also required to achieve the margin ambition ▪ Targeting SEK 20 million in run rate annual savings Program on track and in line with ambitions ▪ Union consultations finalized in Q4 and program under full implementation ▪ Still expect run rate savings of approximately SEK 20 million fully implemented by the end of Q1 2026 ▪ Cost to achieve expected to be somewhat lower than previously communicated at SEK <10 million
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Short term priorities 11 Successful full implementation of the restructuring program to support margin growth Leverage growth momentum on own consumer brands with focused product and marketing initiatives to fuel continued growth Define the right long term business model and production structure for a profitable business recovery in Spain
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Financial review CFO Max Bokander
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13 Financial Summary Comments QTD • Net Sales -2.9% vs L Y • GM% declined with 0.3 p.p., mainly from timing of campaign discounts/bonuses • EBIT +11m from improved efficiency and good cost control • Net financing improved with 4m partly driven by better financing conditions • Net result landed on 33m with -6m IAC •IAC mainly related to the Q3 announced restructuring program • Improved Cash flow from operating activates • Net Debt / Adj EBITDA continued to improve 1) Before items affecting comparability 2) EBITDA rolling 12-months, adjusted for proforma, transaction related costs and other IAC MSEK Q4 2025 Q4 2024 FY 2025 FY 2024 Net Sales 933 961 3 630 3 727 GM%1 28,6% 28,9% 28,5% 28,7% EBIT1 47 36 133 128 EBIT%1 5,0% 3,7% 3,7% 3,4% IAC -6 0 -75 0 Net financing costs -8 -12 -34 -53 EBT 33 24 24 75 Net tax costs 0 -5 -14 -28 Net result 33 19 10 47 Cash Flow from operating activities 141 98 229 142 Net Debt / Adj EBITDA2 1,1 1,6 Net Debt 299 451
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14 Q4 Net Sales 961 -34 6 933 2024 Structure FX Organic 2025 880 890 900 910 920 930 940 950 960 970 980 -3.6% -15,3% -0,8% -13,2% 5,9% Licensed Brands Private Label Own Brand - B2B Own Brands - consumer % of NS 62% 5% 23% Organic growth2 by brand typeNet Sales change +0.7% 1) Impact from effect from divestments or acquisitions of business and/or brands 2) Sales growth adjusted for changes in exchange rate and divestments or acquisitions of business and/or brands 1 10% MSEK 2 - 28 (-2.9%)
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15 Q4 EBIT1 2 -2 13 -1 -1 36 47 2024 Volume Gross Margin Sales & Admin Other FX 2025 0 10 20 30 40 50 60 SEK million GM -0.3 p.p. 1) Before items affecting comparability 2) FX-translation effect (converting entities P&L @ different x-rates) and FX revaluation effect on operating assets/liabilities. 22 36 47 0 20 40 60 80 100 120 140 0 5 10 15 20 25 30 35 40 45 50 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 QTD R12 EBIT1 change EBIT1 trend SEK million +11 (+1.3 p.p.) 5.0% 3.7% Organic growth +0.7% 2 improved efficiency and good cost control
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16 Q4 Cash Flow from operating activities 24 14 -4 100 32 -58 33 141 0 20 40 60 80 100 120 140 160 180 200 157 98 141 0 50 100 150 200 250 300 350 400 -40 -20 0 20 40 60 80 100 120 140 160 180 Q3 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 QTD R12 Net Working Capital +74 (+27) D&A 22 Other 2 1) Cash flow from operating activities 1 QTD Cash flow1 breakdown Cash flow1 trend SEK millionSEK million
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235 139 85 84 141 139 171 193 316 651 626 575 575 628 634 633 656 781 17% 17% 22% 0% 5% 10% 15% 20% 25% 0 100 200 300 400 500 600 700 800 900 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Cash Unutilized credit facilities Available Cash Available cash / Net Sales (R12) Available Cash 1 17 Available cash and Net Debt 1) Available Cash = Cash + available overdraft and unutilized contracted bank credit facilities 2) 2) EBITDA rolling 12-months, adjusted for proforma, transaction related costs and other IAC 364 375 408 389 320 290 337 311 184 496 501 543 525 451 407 447 433 299 2,3 1,6 1,1 0,0 0,5 1,0 1,5 2,0 2,5 0 100 200 300 400 500 600 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Net Debt IFRS16 Net Debt (IFRS16) Net Debt / EBITDA Net Debt and Net Debt / adj. EBITDA 2 SEK million 1 XSEK million 2
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Q&A