English

Interim report, January-June 2015

Report this content

Midsona agreed to acquire Urtekram International A/S, a Danish company holding a leading position in organic foods in the Nordic region

APRIL-JUNE 2015 (SECOND QUARTER)

  • Net sales amounted to SEK 223 million (223).

  • The gross margin was 45.7 percent (46.6).

  • Operating profit amounted to SEK 13 million (12).

  • Profit for the period was SEK 12 million (8).

  • Earnings per share before and after dilution amounted to SEK 0.53 (0.35).

  • Cash flow from continuing operations amounted to SEK 23 million (11).

JANUARY-JUNE 2015 (SIX MONTHS)

  • Net sales amounted to SEK 455 million (464).

  • The gross margin was 44.2 percent (45.7).

  • Operating profit amounted to SEK 14 million (28).

  • Profit for the period was SEK 11 million (20).

  • Earnings per share before and after dilution amounted to SEK 0.49 (0.88).

  • Cash flow from continuing operations amounted to SEK 37 million (18).

Comment by the CEO

In the second quarter, Midsona announced its acquisition of Urtekram International A/S (Urtekram), with ownership being transferred on 1 July 2015. The acquisition is strategically important since it takes us a major step closer towards our vision of becoming a leader in health and well-being in the Nordic region. This broadens our product portfolio of proprietary brands that are well positioned in attractive organic products growth segments, establishes Midsona in Denmark and strengthens our position in the other Nordic countries. The market for organic products showed strong growth in the Nordic region in 2014 and forecasts suggest continued growth over the next few years. In 2014, Urtekram generated sales of SEK 460 million, of which the Urtekram trademark accounted for about 80 percent. Midsona generated sales of SEK 920 million last year and the acquisition thus increases the Group’s pro forma sales by about 50 percent. The transaction is expected to provide both cost and growth synergies. Cost synergies are estimated at approximately SEK 15 million annually, with the full effect being achieved from the second half of 2016. Non-recurring costs for these measures are estimated at about SEK 10 million and will affect earnings for the third quarter of 2015. We also have good expectations that the acquisition will provide growth synergies. With the help of Midsona’s good contacts with the major retail players in Sweden, Norway and Finland, Urtekram is expected to be able to increase its sales. Similarly, Urtekram’s organisation is expected to be able to contribute growth for Midsona’s products in Denmark. The acquisition is being financed through existing credit facilities, an acquisition loan of SEK 70 million and a rights issue for up to SEK 120 million. The terms of the issue will be announced on 6 August.

Midsona’s sales remained unchanged at SEK 223 million for the quarter. Operating profit improved to SEK 13 million (12) and profit after tax was SEK 12 million (8). Several of the Group’s proprietary brands continued to develop favourably. Growth was particularly good for the Friggs and Dalblads brands. A couple of important projects were completed ahead of schedule during the quarter. The closure of the production unit in Stenkullen, with annual estimated cost savings of SEK 7 million, is now complete. Soma Nordic, which was acquired at the end of 2014, is now operationally integrated into the business.

During the remainder of 2015, Midsona will focus on the integration of Urtekram and on developing other prioritized brands in the portfolio. The new merged company will have a better position in negotiations with customers and a stronger platform for product development and marketing. Cost and growth synergies have been identified. Consequently, the acquisition is expected to provide significantly higher sales and improved profitability for the Group. In this way, we are taking new steps towards our vision of becoming a leader in health and well-being in the Nordic region.

Peter Åsberg, President and CEO

This is information of the type that Midsona AB is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was published on July 17, 2015, 8 am.

For further information: MD and CEO Peter Åsberg, 46 (0)730 26 16 32

About Midsona

Midsona holds a strong position in the Nordic market with own strong brands within healthfoods, personal care and hygiene. Midsona also sells a number of licensed internationally established brands.  Our products are sold through grocery and convenience stores, pharmacies, health stores and internet. Midsona’s priority trademarks are: DALBLADS, FRIGGS, MIWANA, MYGGA, NATURDIET, SUPERNATURE, URTEKRAM and TRI TOLONEN. Midsona has annual sales of about MSEK 920 (2014). The Midsona share (MSON) is listed on NASDAQ OMX Stockholm, Small Cap. For further information: www.midsona.com

Tags:

Interim report Midsona

Subscribe

Documents & Links