Midsona (MSON) investor relations material

Executive summary

• Q3 net sales rose 1.7% to SEK 910m, while organic sales declined 3.7%; adjusted operating profit increased to SEK 46m from SEK 45m and adjusted margin held at 5.0%.

• Q3 profit was SEK 39m versus a SEK 15m loss; operating cash flow increased to SEK 57m from SEK 48m.

• Priorities include restoring profitable growth in North Europe, accelerating Consumer Health strategy execution and sharpening portfolio choices.

Financial highlights

• Q3 net sales were SEK 910m versus SEK 895m; structural growth was 4.5% and organic growth was -3.7%.

• Q3 gross margin increased to 29.0% from 28.7%, supported by improved mix; slightly negative net price/cost arbitrage partly offset the gain.

• Q3 net result was SEK 39m versus a SEK 15m loss; 9M net result was SEK 133m versus a SEK 23m loss.

• 9M net sales were SEK 2,673m, down 0.9%, with organic sales down 2.1%; adjusted EBIT rose to SEK 111m from SEK 86m.

• 9M operating cash flow increased to SEK 113m from SEK 88m, supported by earnings and working capital.

Outlook and guidance

• Long-term targets include own-brand organic growth above 5%, adjusted EBIT margin above 8% and net debt/adjusted EBITDA below 2.5x; Q3 LTM outcomes were 2.0%, 4.3% and 1.0x.

• Short-term priorities include turning around Division North through a focused own-brand revamp and accelerating Consumer Health strategy execution.

• Marketing investment behind strong Organic and Health Foods brands is intended to sustain own-brand momentum, though it weighs on near-term margins.

• Risenta sales are expected to reach SEK 130m annually, mainly in Sweden, with a gradually increasing positive impact on operating margin and EPS.

• Spain aims to return to profitability in a smaller, more efficient format without rebuilding fire-damaged capacity; longer-term alternatives remain under evaluation.