Gradual improvement over the quarter supported by price increases
January-
● Net sales amounted to
● EBITDA amounted to
● Operating profit amounted to
● Profit for the period was
● Cash flow from operating activities amounted to
● The global environmental initiative CDP named
● Price increases were implemented with a positive effect on the gross margin, which strengthened by 2.2 percentage points compared with the previous quarter. Further price increases were initiated as prices for input goods, transport and energy continued to rise.
Significant event following the end of the report period
● A restructuring program was decided to strengthen competitiveness, with the cost base being reduced by
Comment by the CEO
The first quarter remained challenging and was largely affected by the situation in
Sales gradually improved during the quarter
Initially, the sales trend was weak, although this turned into a good recovery in March, which turned out to be our strongest sales month since
Overall, sales for our own brands developed relatively better than for licensed brands and contract manufacturing. During the quarter, we made a number of selective market investments in some of our own brands, and these have yielded good return. In a comparison with the same period last year, however, it is important to remember that the comparative figures are relatively strong as large parts of
During the first quarter, we launched Friggs Corn Cake Taco, which was received well by consumers. We also increased the distribution of plant-based meat-alternatives in the Spanish market. Among other things, we made our first deliveries to
Continued price increases on input goods, transport and energy
During the quarter, we saw continued price increases for raw materials, finished goods, packaging materials, transport and energy, where, for example, gas prices for our production facilities in
The problems we saw in the supply chain at the end of last year have also worsened with continued transport problems and shortage situations for certain raw materials and inputs. However, we have managed better now than last autumn because we are better prepared. The measures we have taken to improve the supply chain to achieve greater security in the supply of goods have had an effect. However, volatility in commodity prices and currencies (particularly the USD and EUR) has been a continuous challenge. On the whole, through good foresight, we have managed to maintain our level of service.
Our price increases began to take effect, but will be followed by new ones
In order to maintain our gross margin and compensate for the price increases, we already initiated price increases in the fourth quarter and those began to take effect in the first quarter and achieved full effect in March, that is, slightly earlier than we initially expected. However, the war against
Our new price increases have generally been well received because the causes of the cost inflation are well known. In our key markets of
Costs are to be reduced by
Despite own price increases and generally good cost control, cost inflation has had a significant negative impact on our profit. To strengthen profit, we are initiating a restructuring program including structural changes and staff cutbacks. As far as possible, the cutbacks will be achieved by terminating temporary contracts, as well as through natural attrition. The ambition is to cut costs by
We are confident that implementing a number of measures will strengthen profit.
We are fully focused on strengthening our earnings. Our price increases have generally been well accepted and will gradually have an impact. We are continuing to strengthen our supply chain. Most of our own brands are performing well and are, in our assessment, capturing market share. We are strengthening our organic range and implementing a cost-saving action program. I look to the future with confidence, despite the current challenges and the uncertainty in the world around us. The strong underlying consumer trend for our sustainable and plant-based products remains.
Peter Åsberg
President and CEO
This is information of the type that
For more information, please contact President and CEO Peter Åsberg, telephone +46 (0)730 26 16 32, or CFO
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