Improved profitability and organic sales growth for own consumer brands
July-September 2025 (third quarter)
- Net sales amounted to SEK 895 million (919), corresponding to -2.6 percent growth (-0.4). The organic change in net sales amounted to -0.4 percent (2.6), which was negatively affected by the fire in Spain.
- Gross profit amounted to SEK 207 million (257) and included expenses related to the fire of SEK -50 million, corresponding to a margin of 23.1 percent (28.0). Gross profit, before items affecting comparability, amounted to SEK 257 million (257), corresponding to a margin of 28.7 percent (28.0).
- Operating profit/loss amounted to SEK 0 million (32) and included expenses, net, related to the fire of SEK -44 million, corresponding to a margin of 0.0 percent (3.5). Operating profit/loss, before items affecting comparability, amounted to SEK
45 million (32), corresponding to a margin of 5.0 percent (3.5).
- Profit/loss for the period amounted to SEK -15 million (9), corresponding to earnings per share of SEK -0.11 (0.07) before and after dilution.
- Cash flow from operating activities amounted to SEK 48 million (42).
- Part of the plant-based protein alternatives production facility in Castellcir, Spain, was hit by a fire that resulted in major material damage but no injuries. The business is covered by property damage and business interruption insurance.
- Chief Marketing Officer, Anna Törnebrant, has decided to leave Midsona. She will leave her position and her role in Group Management by February 2026.
January-September 2025 (nine months)
- Net sales amounted to SEK 2,697 million (2,766), corresponding to -2.5 percent growth (-0.9). The organic change in net sales amounted to -0.3 percent (0.2).
- Gross profit amounted to SEK 717 million (791), corresponding to a margin of 26.6 percent (28.6), and gross profit, before items affecting comparability, amounted to SEK 768 million (791), corresponding to a margin of 28.5 percent (28.6).
- Operating profit/loss amounted to SEK 17 million (92), corresponding to a margin of 0.6 percent (3.3), and operating profit/loss, before items affecting comparability, amounted to SEK 86 million (92), corresponding to a margin of 3.2 percent (3.3).
- Profit/loss for the period amounted to SEK -23 million (28), corresponding to earnings per share of SEK -0.16 (0.19) before and after dilution.
- Cash flow from operating activities amounted to SEK 88 million (44)
Significant events after the end of the reporting period
- Midsona AB's Board of Directors decided to initiate a restructuring programme to increase the company's competitiveness, through which the cost base will be reduced by approximately SEK 20 million on an annual basis.
Improved profitability and growth for own consumer brands
Midsona reported a positive development in the third quarter of 2025, with improved profitability and growth for our own consumer brands. The tone was set for the quarter by the effectiveness in the market of our efforts to develop our own brands, with stronger sales as a result. Operating profit amounted to SEK 45 million (32), before items affecting comparability, which was a clear improvement compared with the same quarter of last year.
The operating margin increased significantly, to 5.0 percent (3.5), before items affecting comparability, which was achieved through a more favourable sales mix, continued effective price management, good cost control and better efficiency in our operations.
Net sales for the quarter, which amounted to SEK 895 million (919), were affected by the previously reported fire at our production facility in Castellcir, Spain. The estimated lost sales effect that we previously stated, of SEK 75 million on an annual basis, still stands, and we are now working intensively to optimise the remaining range and, together with the insurance company, ensure compensation in accordance with the applicable insurance terms.
At the same time, there is much to be pleased by: we achieved organic sales growth for our consumer brands in the third quarter despite the loss of sales due to the fire, the profitability trend was positive, our cash flow was stable and our net debt to adjusted EBITDA ratio fell to 1.6x (2.0). During the quarter, we gradually started to see slightly more positive trends in the organic market, which has had a positive impact on our organic brands.
Stability in the Nordics and South Europe with a clear improvement in North Europe
For the Nordics, the organic change in net sales amounted to -3.6 percent in the third quarter. This was partly a consequence of the ongoing transition from direct to central distribution for one of our health food brands. Previously terminated distribution agreements for two licensed brands also had an impact this quarter, but this effect will be phased out in the fourth quarter. Our organic consumer brands grew strongly during the quarter, which showed that our efforts to strengthen the brands and the product offering were appreciated by both customers and consumers. The Nordics reported an operating profit of SEK 65 million (66) and a positive development of the operating margin thanks to a stronger gross margin and good cost control.
For North Europe, the organic change in net sales was +10.3 percent for the quarter, fuelled by strong organic growth for both our own consumer brands and contract manufacturing, which shows that our efforts to develop our organic proposition has borne fruit and created new opportunities with our customers. The strengthening of the gross margin and operating profit of SEK 8 million (-3), before items affecting comparability, show that we are on the right track, but there is more to be done.
South Europe was clearly affected by the fire in Spain, resulting in a weak sales performance. At the same time, the French market grew strongly as a result of new business volumes. The organic change in net sales amounted to -4.9 percent, and operating profit/loss, before items affecting comparability, amounted to SEK -6 million (-8) during the quarter. Thanks to good cost control, South Europe as a whole managed to improve its operating margin compared with the previous year.
A focus on the target margin and efficiency
It's pleasing to see the profitability, but our ambitions are higher and we need to accelerate the pace towards meeting our target margin.
The focus going forward is therefore on stepping up efforts to achieve higher profitability. This is why we are announcing a restructuring programme, in conjunction with the third-quarter report, to accelerate improvements in the margin and strengthen the Group's competitiveness. The programme is expected to deliver annual cost savings of around SEK 20 million when fully implemented, with implementation costs of around SEK 15 million. The programme's measures do not include the ongoing cost adjustments within the Spanish business, which are experiencing lower production capacity following the fire at the Castellcir factory.
The restructuring programme is part of a broader efficiency review that also includes evaluating our production and logistics structure to find sources of efficiency improvements. This is a priority initiative that we will come back to in the future.
We are seeing positive signs at the same time as global uncertainty is continuing to affect consumers' willingness to spend and to delay the recovery. Growing interest in sustainable and healthy food is reflected in our well-established brands. This strengthens our conviction that our strategic agenda puts us in a better position to pursue sustainable sales growth.
Henrik Hjalmarsson
President and CEO
FOR MORE INFORMATION, PLEASE CONTACT:
Henrik Hjalmarsson, President and CEO
Mobile: +46 768 46 20 46
E-mail: henrik.hjalmarsson@midsona.com
Max Bokander, CFO
Mobile: +46 708 65 13 64
E-mail: max.bokander@midsona.com
ABOUT MIDSONA
Midsona develops and markets strong brands within health and well-being, with products that help people live a healthier and more sustainable life, with an increased understanding of the origin of the raw material and with transparency as to the content. The Midsona share is listed on Nasdaq Stockholm. For more information www.midsona.com.
This information is information that Midsona is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-10-22 08:00 CEST.