Midsona presents new financial targets and a new strategy

The board of Midsona has decided on new financial targets based on the group's position in a market characterized by underlying strong growth. At the same time, Midsona is launching a new strategy aimed at strengthening the group's conditions for profitable growth by promoting synergies and developing its offerings.

The long-term drivers behind Midsona's growth journey remain unchanged - the desire to invest in a healthy lifestyle is increasing across the Western world. There continues to be significant underlying interest in organic and sustainable products. Long-term societal development clearly indicates a shift in our consumption patterns towards greater awareness in consumption, where, for example, the new Nordic dietary recommendations to consume more plant-based foods are a sign of the times. Signals of brighter economic prospects indicate that Midsona is well positioned to meet the demand for high-quality healthy foods.

"Midsona has taken several important steps on its journey of change over the past year. Now, we are taking the next step that sets the direction forward. We are presenting new financial targets and simultaneously launching a new strategy aimed at strengthening our position and our offerings based on our strong brands. We have plans to significantly improve the operating margin from our current level and by 2027, to substantially exceed the peak year of 2020 when we reached 6.5 percent. We will work to further increase our efficiency and focus our business on the markets, brands, and products that have the best potential for profitable growth," says Peter Åsberg, CEO of Midsona.
 

New financial targets

The conditions for the food industry have changed, and Midsona is actively working to improve its efficiency and competitiveness. In connection with further changes in a new environment, Midsona presents new financial targets that apply until 2027:

• Organic growth of 3-5% on average per year
• EBIT margin (before items affecting comparability) above 8% by year end 2027
• Net debt/adjusted EBITDA up to 2,5 times

New strategy

Midsona has conducted a thorough review of the group's strategic direction and has adopted a new strategy at the beginning of 2024, aimed at strengthening profitability and laying the groundwork for the future. Midsona's new strategy is based on three pillars:

1. Firstly, Midsona is working to further strengthen its position, drive growth, and develop its offerings within organic foods by working across markets with production, procurement, innovation, and communication. This involves leveraging synergies between brands to make it easier for consumers to navigate the range of products available.
2. Secondly, Midsona will continue to grow with its strong health brands in both existing and new markets. Overall, this means that the group will focus on profitable organic growth in selected markets using Midsona's three prioritized brands where significant potential exists - Friggs, Earth Control, and Gainomax.
3. Thirdly, Midsona aims to streamline the value chain and harmonise the product range to develop an offering that meets market needs. Midsona aims for high efficiency in everything, from procurement and brand development to production and logistics.

¹⁾ The group's previous financial targets were:
Organic growth of over 15% on average per year
EBITDA margin (before items affecting comparability) above 12%
Net debt/adjusted EBITDA between 3-4 times
Dividend of at least 30% of profit after tax

See the presentation about the new strategy

Midsona's new strategy will be presented by CEO and President Peter Åsberg at the following events.

• Aktiespararnas Stora Aktiedagarna in Stockholm. The presentation will take place on March 6th at 17:15. The interview can be viewed live at the following link: https://invitepeople.com/public/events/ee67d00587/pages/fb942de4f3
• ABG Sundal Collier Fireside Chat. The recorded conversation can be viewed starting from March 7th via the following link: https://cr.abgsc.com/foretag/midsona/Media/

FOR MORE INFORMATION, PLEASE CONTACT:

Peter Åsberg, CEO and President

Phone: [phone]

E-mail: [e-mail]

Max Bokander, CFO

Phone: [phone]

E-Mail: [e-mail]

This is information of the type that Midsona AB (publ) is obligated to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication through the agency of the above contact persons on March 6th, 2024 at 8.30 am CET.

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/en.

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