Midsona (MSON) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales were SEK 865 million, a 2% organic decline year-over-year, with flat sales when adjusted for trading days and Easter effect.

• Own organic brands returned to growth with a 1% organic increase, while overall own brands declined 3%.

• The quarter was marked by a less favorable sales mix, higher private label growth, and ongoing efficiency challenges.

• Cash flow from operating activities improved to SEK 5 million, SEK 24 million higher year-over-year, mainly due to better working capital management.

• A fire at the Castelserás plant in Spain destroyed a production area representing SEK 75 million in sales, but operations resumed quickly in unaffected areas.

Financial highlights

• Gross margin declined by 0.8 percentage points to 28.1% in Q2, mainly due to sales mix and factory efficiency issues.

• EBIT before items affecting comparability dropped to SEK 4 million (0.5% margin), down from SEK 22 million last year.

• Net sales for H1 2025 were SEK 1,802 million, a 0.3%–2.4% organic decline year-over-year.

• H1 EBIT before items affecting comparability was SEK 41 million, SEK 19 million lower year-over-year, with a 2.3% EBIT margin.

• Net debt/EBITDA at 1.9x, improved from 2.3x, within financial targets.

Outlook and guidance

• Focus remains on regaining growth momentum in the Nordics, restoring Spanish operations post-fire, and leveraging positive trends in organic brands.

• Strategy centers on organic and healthy food, brand strength, and selected geographic markets.

• Financial targets: 3%–5% organic growth, EBIT margin above 8%, net debt/EBITDA below 2.5x.

• Short-term outlook remains uncertain due to high economic uncertainty and dampened consumer demand.

• Long-term prospects are positive, supported by growing interest in sustainable and healthy foods.