January–March 2025 (first quarter)

• Net sales amounted to SEK 937 million (929), corresponding to growth of 0.9 percent (–4.6). The organic change in net sales amounted to 1.4 percent (–4.2).

• Gross profit amounted to SEK 268 million (269), corresponding to a margin of 28.6 percent (29.0).

• Operating profit/loss amounted to SEK 24 million (38), corresponding to a margin of 2.6 percent (4.1), and operating profit/loss, before items affecting comparability, amounted to SEK 37 million (38), corresponding to a margin of 3.9 percent (4.1).

• Profit/loss for the period amounted to SEK 7 million (16), corresponding to earnings per share of SEK 0.05 (0.11) before and after dilution.

• Cash flow from operating activities amounted to SEK 35 million (21).

• Josefin Kronstrand has been appointed Sourcing Director, with overall responsibility for coordinating the Group’s purchases. She took up her new post on 15 March and has been a member of Group Management from that date.

• Peter Åsberg will leave his position as President and CEO of Midsona, but will remain in his role during a transition period until his successor is in post.

• The Board of Directors of Midsona AB appointed Henrik Hjalmarsson Midsona’s new President and CEO.

Significant events after the end of the reporting period

• Henrik Hjalmarsson will formally take up the position of President and CEO of Midsona on 23 June 2025.

Comment by the CEO
In the first quarter of 2025, Midsona’s operating profit achieved SEK 37 million (38), before items affecting comparability. The result was mainly driven by a still stable gross margin, of 28.6 percent (29.0) before items affecting comparability, despite continued high raw material prices. The margin was affected by increased production costs in Germany and Spain due to a ramp-up to meet higher demand. At the same time, in March, we saw the positive effects of a better delivery capacity and therefore better sales – growth that is largely coming from investments in our own brands.
Nordics’ operating profit, before items affecting comparability, amounted to SEK 48 million (56), which is lower than last year. This is largely due to the aggressive sales and marketing investments that we made to bolster the launch of Friggs in Denmark and Biopharma in Norway, which looks promising so far. This investment is important for future growth, but had a negative short-term impact on our results.
North Europe increased its operating profit, before items affecting comparability, to SEK 8 million (5), as a result of improved delivery capacity combined with increased production rates. New listings for the Davert brand and contract manufacturing volumes have also been taken on, which we will start delivering on towards the end of the second quarter.
For South Europe, the operating profit/loss, before items affecting comparability, amounted to SEK 0 million (–1). A series of efficiency improvements at the Spanish production facility contributed to the somewhat better operating profit/loss compared with last year. During the quarter, we significantly improved our listings for the Happy Bio brand with a major customer in France, which we expect to have a positive effect in the second quarter.
Interest expenses decreased, due to lower indebtedness and lower market interest rates. In other goods news, the Group’s cash flow improved during the quarter, driven by the increasingly efficient management of our working capital.

Investments in our brands
The Group’s net sales increased organically by 1.4 percent during the period and our own consumer brands grew by 1.6 percent. This means the following based on our three product categories. The consumer health products category was a strong contributor to organic growth. The health food category as a whole performed well, supported by promotional campaigns for a few selected brands, while the organic products category continued to face certain challenges in some geographical markets. All in all, I can say that the investments that we are now making in our brands are paying off and generating growth for us. The performance of licensed brands was weak, due to the termination of distribution agreements. Sales growth for contract manufacturing was strong, as the new business volumes rolled out more than compensated for the unprofitable assignments terminated.

Our strategy is continuing to drive us forward
As a Group, we need to continue to respond to the turbulent environment, a situation that is challenging much of the industry’s strategies and opportunities to do more business. At the moment, large exchange rate fluctuations are strengthening the Swedish krona, but the overall impact on us is relatively neutral due to price increases for some of the key raw materials that we buy. Our strategy remains in place and we will continue to work according to plan and to reinforce our brands, our efficiency and our profitability. Our new Sourcing Director Josefin Kronstrand took up her post in March as part of this process. Josefin will lead our central purchasing function to ensure a more coordinated approach to purchasing.
When I hand over my post as President and CEO of Midsona to Henrik Hjalmarsson on 23 June, I will do so with great confidence that we are on the right track.

Peter Åsberg
President and CEO