Greenfood’s interim report first quarter 2022

The first quarter of the year was characterised by increased sales and improved EBITDA in a highly inflationary environment.

Summary of period January to March, 2022

• Net sales for the period reached SEK 1,201.0 million (982.6) an increase of 22.2% compared to the same period last year.
• Adjusted EBITDA improved significantly with SEK 23.4 million to SEK 22.3 million (-1.1) in the first quarter.
• Operating profit/loss amounted to SEK -37.1 million (-49.3), including non-recurring items of SEK -1.3 million and expenses from unestablished businesses of SEK -6.8 million. Adjusting for these issues, the operating result improved with SEK 20.3 million versus last year in the seasonally weak first quarter. This improvement was mainly generated through sales growth in Picadeli.
• Cash flow from operations reached SEK -45.9 million (39.2). In Q1, 2021 Covid -19 rules allowed the Group to defer tax payments of SEK 83.8 million impacting cash flow positively
• Group net result for the seasonally slow quarter amounted to SEK -60.1 million (-35.2) where the result in Q1 2021 was affected positively by a SEK 25 million one-time appreciation of tax-related interest rate deductions.

Significant events during the quarter

• Picadeli established a central European logistics centre in Belgium to primarily serve the German and Benelux markets.
• Picadeli and Food Solutions cooperated in a successful launch of a new food-to-go product range under the Picadeli brand.
• Food Solutions initiated a move of its operation in Lahti to Helsinki to generate further productivity gains. This will be completed in 2022.
• Inflationary pressure affected especially raw material, fuel, energy, labour, and semiconductors. Greenfood implemented and pushed through mitigating actions safeguarding profitability in the value chain.
• The Russian war on Ukraine has caused a lack of some key minerals needed in agriculture, disrupted the world-wide container traffic, and clogged up international ports with goods not being delivered to Russia. Greenfood was mainly affected by disruption of container traffic to Finland.
  

Post closing events

• The Fresh Produce business area signed a cooperation agreement with Agtira, a provider of eco-system solutions for, among other things, cultivating vegetables in an urban environment, so called vertical farming.
• Picadeli was awarded at Europe’s largest Foodtech event, Food4Future’s Foodtech world summit. They were recognized for their use of advanced technology, such as data cloud connectivity and AI, to create a salad bar that makes it easier for consumers to choose a healthy meal.
  
  

Read the full report on Greenfoods website

For further information, contact:
Mattias Engberg, CFO, Greenfood AB (publ)
mattias.engberg@greenfood.se

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