Midsona Year-End Report January-December 2025

October–December 2025 (fourth quarter)

• Net sales amounted to SEK 933 million (961), corresponding to –2.9 percent growth (–4.1). The organic change in net sales amounted to 0.7 percent (–3.4), which was negatively affected by the fire in Spain during the summer.

• Gross profit amounted to SEK 266 million (278), corresponding to a margin of 28.5 percent (28.9), and gross profit, before items affecting comparability, amounted to SEK 267 million (278), corresponding to a margin of 28.6 percent (28.9).

• Operating profit/loss amounted to SEK 41 million (36), corresponding to a margin of 4.4 percent (3.7). Operating profit/loss, before items affecting comparability, amounted to SEK 47 million (36), corresponding to a margin of 5.0 percent (3.7).

• Profit/loss for the period amounted to SEK 33 million (19), corresponding to earnings per share of SEK 0.23 (0.13) before and after dilution.

• Cash flow from operating activities amounted to SEK 141 million (98).

• Midsona AB’s Board of Directors decided on a restructuring programme to increase the company’s competitiveness, through which its cost base will be reduced by approximately SEK 20 million on an annual basis.

• CFO, Max Bokander, has decided to leave Midsona. He will leave his position and his role in Group Management in March 2026.

January–December 2025 (full year)

• Net sales amounted to SEK 3 630 million (3 727), corresponding to –2.6 percent growth (–1.7). The organic change in net sales amounted to –0.1 percent (–0.7), which was negatively affected by the fire in Spain during the summer.

• Gross profit amounted to SEK 983 million (1 069), and included costs related to the fire of SEK –52 million, corresponding to a margin of 27.1 percent (28.7), and gross profit, before items affecting comparability, amounted to SEK 1 035 million (1 069), corresponding to a margin of 28.5 percent (28.7).

• Operating profit/loss amounted to SEK 58 million (128), and included net costs related to the fire of SEK –45 million, corresponding to a margin of 1.6 percent (3.4), and operating profit/loss, before items affecting comparability, amounted to SEK 133 million (128), corresponding to a margin of 3.7 percent (3.4).

• Profit/loss for the period amounted to SEK 10 million (47), corresponding to earnings per share of SEK 0.07 (0.33) before and after dilution.

• Cash flow from operating activities amounted to SEK 229 million (142).

• The Board of Directors proposes that a dividend of SEK 0.22 per share (0.20) be paid for 2025, corresponding to SEK 31,994,178 (29,085,616).

Significant events after the end of the reporting period

• Niclas Lundin was appointed the new CFO of Midsona. He will take up his new position on 1 March 2026 and will be a member of Group Management from that date.

Profitable organic growth and strong cash flow
Midsona’s fourth quarter of 2025 was characterised by improved profitability and some organic growth for the Group, with our own consumer brands as a driving factor. This shows that the initiatives that we have taken in both marketing and product innovation are producing results. At the same time, we strengthened our profitability through ongoing measures aimed at achieving greater cost efficiency. During the quarter we saw a continued recovery in the organic market, which also contributed to organic growth.
Fourth-quarter operating profit amounted to SEK 47 million (36), before items affecting comparability, which was a clear improvement compared with the fourth quarter of last year. The operating margin improved and amounted to 5.0 percent (3.7), before items affecting comparability. This improvement was achieved by actively working on our cost efficiency and successfully promoting sales of own consumer brands. As part of this process, we succeeded in simplifying and focusing our range within selected brands to increase our relevance and impact in the market.
Net sales for the quarter amounted to SEK 933 million (961), and were negatively affected by currency effects, as well as the continued impact of the previous fire at our production facility in Castellcir, Spain. Our ongoing growth initiatives are having an impact on organic sales growth, which was positive for the Group as a whole, at 0.7 percent, and for our own consumer brands, at 5.9 percent.
Cash flow from operating activities developed positively during the quarter and increased to SEK 141 million (98), reducing the net debt to adjusted EBITDA ratio to 1.1x (1.6) at the end of the quarter.

The Nordics are leading the way, while South Europe is adjusting
For the Nordics, the organic increase in net sales amounted to 0.7 percent during the fourth quarter. This development is attributable to good organic growth for our own brands, with an organic range that performed well, driven by our targeted marketing efforts. In the second and third quarters, the transition from direct to centralised distribution for one of our health food brands had a negative impact on sales in the Nordics. Now that this change is behind us, we are seeing positive results, in terms of both organic growth and better cost efficiency, and therefore increased profitability. The work on strengthening the cost efficiency continued successfully during the quarter, and this led to an overall operating profit, before items afffecting comparability, of SEK 60 million (52) for the Nordics.
For North Europe, the organic increase in net sales amounted to 0.1 percent during the quarter. Continued organic growth for our own consumer brands and contract manufacturing offset the weaker sales performance for own B2B brands, for which a continued focused optimisation of the product range led to lower net sales, but strengthened profitability. Operating profit/loss, before items affecting comparability, amounted to SEK 9 million (13). The lower profit is mainly due to the timing effect of customer rebates and bonuses linked to promotions, as well as a slightly more negative product mix in contract manufacturing.
South Europe continued to recover from the previous fire at the production facility in Spain. Despite the negative impact of the fire, we saw growth in our own consumer brands in the region, as well as very good growth in the grocery trade in France, which contributed to the recovery. We also saw improved production efficiency, which supported the recovery of South Europe’s performance, contributing positively to the Group's results. The organic change in net sales amounted to –3.1 percent, and operating profit/loss, before items affecting comparability, amounted to SEK 0 million (–7) during the quarter.

Clearer priorities to accelerate profitable growth
We are seeing continued tendencies of a more stable situation for the households after a tougher period, but at the same time there are uncertainties in the world around us that could once again change the course of consumers’ consumption patterns and their willingness to buy.
In the fourth quarter we continued to improve our profitability, but we are still some way from achieving our financial targets. One measure to attain the target was the restructuring programme that we launched in connection with the third-quarter report, whose purpose is to accelerate margin improvement and strengthen our competitiveness. The programme is on track to be fully implemented in the first quarter of 2026, with annual cost savings of around SEK 20 million. The programme is part of a broader review, which also includes the existing production and logistics structure.
The organic growth of our own consumer brands during the quarter is the result of a number of measures ranging from efficient marketing to an improved assortment. We are pleased with the improvement compared with last year, but our ambitions are higher. We are therefore now working on further clarifying our priorities and actions for continued profitable growth. Given our robust balance sheet, our strong positions in our home markets and the improved performance of our consumer brands, we are therefore positive about the long-term opportunities for both organic and structural profitable growth.

Henrik Hjalmarsson
President and CEO