Midsona (MSON) Q2 2024 earnings summary

Executive summary

• Net sales increased by 2.8% year-over-year in Q2 2024 to SEK 918 million, with organic growth of 2.7–3% after a period of decline.

• EBIT before one-off items improved to SEK 22 million from SEK -1 million, with EBIT margin rising to 2.4% from -0.1%.

• Gross margin strengthened to 28.9% from 26.4%, driven by price management, streamlined product range, and efficiency gains.

• Net result improved by SEK 35 million year-over-year, with profit for the period at SEK 3 million, up from a loss of SEK -32 million.

• New strategy and management team focus on organic and healthy foods, efficiency, and brand growth in selected markets.

Financial highlights

• Net sales: SEK 918 million (Q2 2023: SEK 893 million), +2.8% year-over-year.

• EBIT: SEK 22 million (Q2 2023: SEK -1 million), EBIT margin 2.4% (-0.1%).

• Gross margin: 28.9% (Q2 2023: 26.4%), +2.5 percentage points.

• Net result: SEK 3 million (Q2 2023: SEK -32 million), +SEK 35 million year-over-year.

• Cash flow from operating activities: SEK -19 million (Q2 2023: SEK 17 million), mainly due to increased working capital tied up in inventories.

Outlook and guidance

• New financial targets: organic sales growth 3–5% per year, EBIT margin above 8% by 2027, net debt/EBITDA below 2.5x.

• Management expects gradual improvements in 2024, focusing on strategy implementation, profitability, and market position strengthening.

• Focus on increasing sales share of own brands and achieving strong cost synergies.

• Profitability prioritized over volume for Private Label and Licensed brands.

• Leverage already below target, enabling potential for future M&A.