October–December 2024 (fourth quarter)

• Net sales amounted to SEK 961 million (1,003), corresponding to growth of –4.1 percent (–2.3). The organic change in net sales was –3.4 percent (–4.4).

• Gross profit amounted to SEK 278 million (248), corresponding to a margin of 28.9 percent (24.7), and gross profit, before items affecting comparability, amounted to SEK 278 million (255), corresponding to a margin of 28.9 percent (25.4).

• Operating profit/loss amounted to SEK 36 million (19), corresponding to a margin of 3.7 percent (1.9), and operating profit/loss, before items affecting comparability, amounted to SEK 36 million (22), corresponding to a margin of 3.7 percent (2.2).

• Profit/loss for the period amounted to SEK 19 million (3), corresponding to earnings per share of SEK 0.13 (0.03) before and after dilution.

• Cash flow from operating activities amounted to SEK 98 million (157).

• Updated climate targets for Midsona were approved by the Science Based Target initiative (SBTi), which was an important step in the work contributing towards the Paris Agreement’s goal of limiting global warming.

January–December 2024 (full year)

• Net sales amounted to SEK 3,727 million (3,793), corresponding to growth of –1.7 percent (–2.7). The organic change in net sales was –0.7 percent (–6.6).

• Gross profit amounted to SEK 1,069 million (959), corresponding to a margin of 28.7 percent (25.3), and gross profit, before items affecting comparability, was SEK 1,069 million (984), corresponding to a margin of 28.7 percent (25.9).

• Operating profit/loss amounted to SEK 128 million (29), corresponding to a margin of 3.4 percent (0.8), and operating profit/loss, before items affecting comparability, amounted to SEK 128 million (60), corresponding to a margin of 3.4 percent (1.6).

• Profit/loss for the period amounted to SEK 47 million (–53), corresponding to earnings per share of SEK 0.33 (–0.36) before and after dilution.

• Cash flow from operating activities amounted to SEK 142 million (343).

• The proposed dividend for 2024 is SEK 0.20 per share, corresponding to SEK 29,085,616. No dividend was paid for 2023.

Significant events after the end of the reporting period

• Josefin Kronstrand was appointed Purchasing Director, with overall responsibility for coordinating the Group’s purchases. She will take up her new position on 15 March 2025 and will be a member of Group Management from that date.

Comment by the CEO

Strengthened margins and improved operating profit
For the fourth quarter of 2024, Midsona’s operating profit/loss increased to SEK 36 million (19). Operating profit/loss, before items affecting comparability, amounted to SEK 36 million (22). The improvement in earnings was mainly driven by a stronger gross margin, of 28.9 percent (25.4) before items affecting comparability, which was achieved despite continued relatively high raw material prices and an unfavourable sales mix.
For Nordics, operating profit/loss, before items affecting comparability, amounted to SEK 52 million (55), being reduced by major market investments planned, which are expected to yield good returns in 2025. North Europe improved its operating profit/loss, before items affecting comparability, to SEK 13 million (–4), as a result of increased sales, a more profitable sales mix and lower production and inventory costs. For South Europe, the operating profit/loss, before items affecting comparability, improved to SEK –7 million (–11). We are of course not satisfied with this result and are continuing to develop and improve the business operationally.
Profit/loss before tax improved to SEK 24 million (4) as a result of an improvement in operations, while interest expenses decreased due to lower debt levels and lower market interest rates.
Group net sales decreased organically by 3 percent during the quarter, which was due to Nordics, following the previously announced decision to terminate unprofitable contracts related to the Christmas season for the health food category in order to strengthen the gross margin. Net sales increased for both North Europe and South Europe, however. For the Group, the positive trend for the organic products category continued, with a 5 percent increase in sales. We also saw sales growth for several of our own consumer brands and for our contract manufacturing.
This is another quarter that can be summarised by stronger margins and improved operating profit in line with the Group’s new strategy. Midsona is on the right track and is continuing the work begun to achieve our long-term financial targets.

Midsona exits 2024 strengthened and the Board proposes a dividend for shareholders
For the full year, operating profit/loss, before items affecting comparability, improved to SEK 128 million (60), more than doubling. Our net debt to EBITDA ratio at year-end was 1.6 x. The leverage offered by a stronger operating profit/loss and reduced debt therefore had a clear effect, which also contributed to Midsona exceeding the financial target of net debt/EBITDA of a maximum of 2.5 x.
All three divisions improved their margins and operating profit/loss compared with last year, and Nordics continued to be the driving force. For North Europe, 2024 marked a clear turnaround, as the business returned to full-year profitability. South Europe also improved during the year, but the operating profit/loss was still negative.
The first steps in the implementation of our new strategy and organisation have been a success. Measures taken within Midsona have strengthened the Group’s financial position and underlying profitability. Thanks to its positive performance, Midsona’s Board of Directors is proposing a dividend for shareholders of SEK 0.20 per share for the financial year 2024.

A brighter outlook and a focus on improving profitability
We will continue to implement our strategy to further strengthen Midsona’s position. There is much potential to realise the impacts and synergies through the ongoing work on the coordination of our processes and platforms.
While there is a certain uncertainty in the near-term outlook, we are taking a positive view of the full year 2025. As inflation normalises, interest rates in our core markets fall and purchasing power increases, interest in sustainable and healthy food will grow. In such a situation, Midsona is well positioned to achieve organic sales growth with strong margins. I am therefore positive about both the market generally and Midsona’s outlook for the full year 2025.

Peter Åsberg
CEO and president