Q3 2024 Midsona AB Earnings Call Transcript
Key Points
- Midsona AB (FRA:9KF) achieved organic sales growth for the second consecutive quarter, with a growth rate of 2.6% in Q3.
- The company's EBIT improved significantly from SEK 9 million last year to SEK 32 million this year, indicating strong operational performance.
- Gross margin increased from 25.2% last year to 28% this year, despite high raw material prices.
- Net debt to EBITDA ratio improved significantly, reducing from 4 times last year to 2 times this year, showcasing enhanced financial stability.
- The Nordic division showed strong performance, with a 35% improvement in operating profit to SEK 66 million, driven by a more profitable product mix.
- Overall sales were slightly down due to currency effects, despite organic growth.
- The company faced production constraints in its German factories, limiting potential sales growth in the organic segment.
- Conventional health food brands saw a decline due to the termination of less profitable contracts.
- The North division posted a loss of SEK 3 million, although it was an improvement from the previous year's loss.
- Market conditions remain challenging, with some markets and channels still depressed, affecting overall growth potential.
Thank you so much for attending this call. This is Peter Ãsberg speaking CEO of at the Midsona company.
As a top line summary, I would conclude that we took steps forward also in the third quarter, we deliver organic sales growth for the second quarter in a row. We do significantly strengthen our margins and also our operating results. That said we are on a journey and the steps taken so far are really only the first steps in our long term quest to reach our financial targets.
And before we go into the numbers, I would just like to make you aware that there might be certain forward-looking statements in this presentation and that such statements are subject to risk and uncertainty.
So let's dive into quarter three.
I would say that overall, we are reasonably happy with our progress in the quarter. Sales was slightly down due to currency effect, but we're still closing an organic sales growth of just below 3%.
Looking at EBIT before one of items we improved to SEK 32 million which should be compared to SEK 18 million last year.
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