Q2 2024 Midsona AB Earnings Call Transcript
Key Points
- Midsona AB (FRA:9KF) returned to organic sales growth in Q2 2024 after seven consecutive quarters of negative growth.
- The company significantly strengthened its margins and operating results, with EBIT before one-off items amounting to SEK22 million compared to minus SEK1 million last year.
- All three divisions reported improved volumes and stronger operating profits.
- The gross margin increased to 28.9% from 26.4% the previous year, despite high raw material prices.
- New business generation efforts were successful, including new listing agreements for the brand Davert and several private-label contracts.
- The cash flow from operating activities was negative, landing at minus SEK19 million, which was SEK36 million weaker than last year.
- The Nordic division saw flat sales due to the termination of unprofitable contracts and weak market conditions for organic foods in some Nordic countries.
- The South Europe division continued to struggle with negative EBIT, despite improved production efficiency and price increases.
- The company still faces significant supply chain challenges, particularly in the North division.
- Market conditions for organic foods in France remain depressed, impacting sales and profitability.
Dear all this is CEO, Peter Asberg speaking. Thank you for attending this call and have a top line summary. I can conclude that we took several steps forward also in the second quarter, we are back to organic sales growth and we significantly strengthen our margins and operating results. And I'm also happy to say that this improvement is broad.
It's across all three divisions. They all reported both improved volumes are stronger operating profit dataset, and this is really well for step in our quest to reach our new financial targets. And before we go into the bundle in the presentation, I would just like to make you aware that this presentation might contain certain forward-looking statements. And as such subject, such statements might be subject to risk.
So let's get into the summary of the second quarter. I said we are very happy about the progress. We continue to do good in the second quarter. We are growing sales again and we see especially good progress in the [nation North], which is the debt regional cross servicing
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