Midsona — Interim / Quarterly Report 2022

Feb 2, 2023

Y E A R - E N D R E P O R T 2 0 2 2

Strong cash flow from operating activities after measures were taken

October–December 2022 (fourth quarter) January–December 2022 (full-year)

• Net sales amounted to SEK 1,027 million (1,012).
• EBITDA, before items affecting comparability, amounted to SEK 45 million (61), corresponding to a margin of 4.4 percent (6.0) and EBITDA amounted to SEK 39 million (58).
• Operating profit, before items affecting comparability, amounted to SEK 5 million (20), corresponding to a margin of 0.5 percent (2.0) and the operating profit/loss was SEK –6 million (17).
• Profit for the period was SEK –15 million (1), corresponding to earnings per share of SEK –0.19 (0.01) before and after dilution.
• Cash flow from operating activities amounted to SEK 128 million (–16).
• Having secured the approval of an Extraordinary General Meeting, Midsona's Board of Directors adopted and implemented a fully secured new share issue for SEK 600 million before issue expenses, with preferential rights for existing shareholders.

• The financing agreement with Danske Bank and Svensk Exportkredit was extended to subsequently mature in September 2025.

• Net sales amounted to SEK 3,899 million (3,773).

• EBITDA, before items affecting comparability, amounted to SEK 191 million (313), corresponding to a margin of 4.9 percent (8.3) and EBITDA amounted to SEK 176 million (329).
• Operating profit, before items affecting comparability, amounted to SEK 30 million (157), corresponding to a margin of 0.8 percent (4.2) and the operating profit/loss amounted to SEK –465 million (161).
• Items affecting comparability amounted to SEK –495 million (4), of which impairment on intangible and tangible fixed assets amounted to SEK –480 million following impairment testing.
• Profit for the period amounted to SEK –501 million (89), corresponding to earnings per share of SEK –6.73 (1.31) before dilution and of SEK –6.73 (1.30) after dilution.
• Cash flow from operating activities amounted to SEK 203 million (–64).
• The Board of Directors proposes that no dividend be paid for 2022.

Key figures, Group1	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Net sales growth, %	1.5	–6.6	3.3	1.7
Gross margin, before items affecting comparability, %	22.6	23.9	24.0	27.0
Gross margin, %	22.4	23.9	22.5	26.9
EBITDA margin, before items affecting comparability, %	4.4	6.0	4.9	8.3
EBITDA margin, %	3.8	5.7	4.5	8.7
Operating margin, before items affecting comparability, %	0.5	2.0	0.8	4.2
Operating margin, %	–0.6	1.7	–11.9	4.3
Profit margin, %	–3.2	0.6	–13.6	3.0
Return on capital employed, %			Neg.	4.1
Net debt, SEK million	774	1,436	774	1,436
Net debt / Adjusted EBITDA, multiple			4.4	4.4
Equity/assets ratio, %	62.8	54.4	62.8	54.4
Free cash flow, SEK million	120	–25	180	–94

1 Midsona presents certain financial measures in the Year-end Report that are not defined under IFRS. For definitions and checks against IFRS, please refer to pages 19–20 of this Year-end Report and to pages 184–188 of the 2021 Annual Report.

Note:

This is information such that Midsona AB (publ) is required to publish under the EU Market Abuse Regulation and the Financial Instruments Trading Act. This Year-end Report was submitted under the auspices of Peter Åsberg and Max Bokander for publication on 2 February 2023 at 8:00 a.m. CET.

For further information

Peter Åsberg, CEO +46 730 26 16 32 Max Bokander, CFO +46 708 65 13 64

Peter Åsberg, President and CEO

Q4 SEK 1,027 million Net sales

SEK 45 million

EBITDA, before items affecting comparability

4.4 percent

EBITDA margin, before items affecting comparability

Comment by the CEO

The fourth quarter remained challenging and was characterised by the same trends we perceived earlier in the year – high inflationary pressure, but also, at the same time, an underlying interest in healthy, organic food. We continued to implement cost-saving measures and prepared price increases with the aim of fully offsetting the cost increases.

Still favourable demand at lower price points

Sales increased to SEK 1,027 million (1,012) over the quarter with good growth for our conventional brands, such as Friggs and Gainomax. Demand for organic alternatives remained favourable, and the decline in our sales of organic products was mitigated compared with the third quarter. While, Helios showed very good growth in Norway, growth was particularly strong for private label, where the price points are somewhat lower. On the whole, we can state that consumers' interest in our brands and in healthy choices remains intact.

Price increases to take effect in the first quarter of 2023

The exceptional cost inflation that characterised 2022 continued in the fourth quarter. As previously communicated, our price increases will primarily achieve an impact in the first quarter of 2023 – and, in the fourth quarter of 2022, this was reflected in a continued low gross margin. EBITDA, before items affecting comparability, decreased to SEK 45 million (61), primarily as a result of the pressured gross margin, but also due to challenges in the South Europe division where production overheads were temporarily high. We believe these problems will be resolved in the first quarter of 2023 and that the successful cost savings implemented by the Group will be visible in the figures going forward. It is our assessment, however, that the gross margin may remain pressures in the first quarter of 2023, with some customers buying up stocks before the announced price increases take effect from mid-February.

Strengthened platform for the future

We have worked to reduce our costs, but also to strengthen our cash flow, resulting in a free cash flow of SEK 120 million (–25). This was the strongest individual quarter to date, thanks largely to more efficient inventory management. The new share issue of approximately SEK 600 million completed during the quarter and our strong focus on cash flow meant that net debt was almost halved at the end of the year compared with a year earlier. This means we now have a more stable platform to build on.

Slightly brighter cost trend

With regard to the continued cost trend for input goods, we perceive a certain stabilisation in the pricing scenario in the global market. Prices for organic products are not set there, however, and are instead based more locally, where we are not seeing the same clear shift. It is nonetheless our assessment that prices for organic products will also stabilise. Transport costs have also come down somewhat and energy costs have not risen quite as high as previously feared. We saw the currency headwind that we had experienced over most of the year soften somewhat over the quarter. Although the strengthening of the EUR and the DKK against the USD was favourable, the continued weak position of the SEK against the EUR had a negative impact.

We take a confident view of the future

Despite a continued uncertain situation in early 2023, we are cautiously positive. The completed share issue means that we are in a very stable position and I would like to take this opportunity to express my gratitude for the trust shown in us. We are continuing to implement a number of measures, fully focused on strengthening our earnings, and we are seeing our cost-saving measures gradually having the desired impact. In addition, price increases in the first quarter of 2023 will allow us to close the cost gap experienced in previous quarters. On the whole, we look ahead with confidence.

Peter Åsberg President and CEO

Financial information – Group

October–December

Net sales

Net sales amounted to SEK 1,027 million (1,012), an increase of 1.5 percent. The organic change in net sales was –3.5 percent, while exchange rate fluctuations contributed 5.0 percent. For the Group's own brands, the organic sales growth was –4.6 percent. As a whole, the sales trend was challenging for the portfolio of own brands in the categories of organic products and consumer health products, while contract manufacturing has maintained strong growth. The harsher private finance climate for consumers has, to some extent, led to a temporary shift towards more private label products in the lower price segment. For most own brands in the health food category, sales growth was stable, despite continued capacity shortages at a major supplier, resulting a certain sales decline. Sales volumes were restrained among licensed brands, where much of the product range is in the upper price segment.

Gross profit

Gross profit, before items affecting comparability, amounted to SEK 232 million (242), corresponding to a margin of 22.6 percent (23.9) and gross profit amounted to SEK 230 million (242). The negative margin trend continued to be driven by strong inflationary pressure with increased prices for finished goods in particular, certain raw materials and packaging materials – prices that have yet to be fully offset by price increases at the next level. For most raw materials and packaging materials, as well as for road transports, however, the pricing scenario began to stabilise, although still at a high level, while the pricing scenario for maritime transports improved as a result of lower global demand for such transports. Energy costs for the Group's production facilities increased, although not to the extent previously feared. A continued unfavourable exchange rate trend for both USD and EUR also contributed to the negative margin trend, as most raw materials and finished goods are purchased in these currencies. The product mix was unfavourable because a higher proportion of sales involved contract manufactured products, which generally have lower margins. Gross profit was also burdened by high temporary production overheads at one of the Group's production facilities. To restore the margin as quickly as possible, new price increases towards customers were both planned and announced.

Operating profit

Operating profit, before items affecting comparability, amounted to SEK 5 million (20), corresponding to a margin of 0.5 percent (2.0) and the operating profit amounted to SEK –6 million (17). Amortisation and depreciation for the period amounted to SEK –40 million (–41), divided between SEK –12 million (–13) in amortisation of intangible fixed assets and SEK –28 million (–28) in depreciation of tangible fixed assets. Impairment of intangible fixed assets by SEK –5 million for the period consisted entirely of the translation difference on the preceding quarter's impairment. EBITDA amounted to SEK 39 million (58) and EBITDA, before items affecting comparability, amounted to SEK 45 million (61), corresponding to a margin of 4.4 percent (6.0). The EBITDA margin decreased essentially as a consequence of weak development in the gross margin.

Cost control and cost awareness were good in the Group at the same time that synergies from the ongoing restructuring programme were realised.

Items affecting comparability

Operating profit included items affecting comparability of SEK –11 million (–3) comprising restructuring costs of SEK –6 million and translation differences of SEK –5 million on impairments of intangible fixed assets. Restructuring costs were attributable to the ongoing restructuring programme to lower the cost base. The comparison period included acquisition-related costs of SEK –3 million attributable to the acquired business Vitality.

Financial items

Net financial items amounted to SEK –27 million (–11). Interest expenses for external loans to credit institutions amounted to SEK –18 million (–8) and interest expenses attributable to leases were SEK –1 million (–1). Interest expenses to credit institutions increased as a consequence of higher interest rates on the credit facilities. Net translation differences on financial receivables and liabilities in foreign currency amounted to SEK –5 million (0), of which SEK –8 million referred to a realised currency effect arising on the amortisation of loans to credit institutions in December. Other financial items amounted to SEK –3 million (–2).

Profit for the period

Profit for the period amounted to SEK –15 million (1), corresponding to earnings per share of SEK –0.19 (0.01) before and after dilution. Tax on the profit for the period amounted to SEK 18 million (–5), of which the current tax was SEK –1 million (3), tax attributable to previous years was SEK 1 million (0) and deferred tax was SEK 18 million (–8).

Cash flow

Cash flow from operating activities improved to SEK 128 million (–16) as a result of a stronger cash flow from changes in working capital. This was driven by significantly less capital, down SEK 136 million, being tied-up in inventory as a consequence of supply chain activities being implemented. Capital tied-up in operating receivables decreased substantially as a result of lower invoicing in November and December compared with August and September. In the comparison period, operating liabilities in particular were impacted strongly negatively by new legislation in Sweden, with changed payment terms for agricultural and food products. Cash flow from investing activities amounted to SEK –9 million (–125), consisting of investments in tangible and intangible fixed assets of SEK –8 million (–15), and a change in financial assets by SEK –1 million (1). The comparative period included a business acquisition for SEK –111 million. Free cash flow amounted to SEK 120 million (–25). Cash flow from financing activities was SEK –57 million (7), comprising the new share issue by SEK 600 million, issue expenses of SEK –9 million (–6), loans raised of SEK –24 million (140) in the form of less-utilised overdraft facilities, the amortisation of loans by SEK –609 million (– 69) and amortisations of lease liabilities by SEK –15 million (–14). The comparative period also included a dividend paid of SEK –44 million. Cash flow for the period amounted to SEK 62 million (–134).

January–December

Net sales

Net sales amounted to SEK 3,899 million (3,773), an increase of 3.3 percent. The organic change in net sales was –2.6 percent while structural changes contributed 2.5 percent and exchange rate fluctuations 3.4 percent. For the Group's own brands, the organic sales growth was –3.3 percent. As a whole, the Group's sales trend for comparable units weakened despite stable growth for most own brands in the health food and consumer health product categories, as well as growth in contract manufacturing. For own brands in the organic products category and for licensed brands, sales for comparable units were weak. Society's removal of pandemic restrictions led to altered consumption patterns with decreased household consumption and more restaurant visits, which, on the whole, disadvantaged own brands in the organic products category. Strong inflationary pressure also burdened consumers' purchasing power, leading to a certain temporary shift whereby consumers increasingly chose private label products in the lower price segment. Over the year, the supply chain occasionally came under pressure with, for example, longer lead times for deliveries of raw materials, packaging materials and finished goods due to the global transport situation.

Gross profit

Operating profit, before items affecting comparability, amounted to SEK 935 million (1,019), corresponding to a margin of 24.0 percent (27.0) and gross profit amounted to SEK 878 million (1,015). The negative margin trend was driven strongly by severe inflationary pressure, with increased prices for raw materials, packaging materials, completed goods, energy and transport, which could not immediately be parried by price increases to customer, but that occur with a certain time lag. Furthermore, the exchange rate trend for the EUR and USD against the SEK, NOK and DKK was unfavourable and had a strong negative impact on the development of the margin, with most raw materials and finished goods being purchased in EUR and USD. In the second half of the year in particular, the product mix was unfavourable with more sales of contract manufactured products with a generally lower margin. At most of the Group's production facilities, efficiency was occasionally low, partly due to the strained global transport situation with delays in deliveries of goods. Gross profit was also burdened in the second half of the year with increased production overheads in one of the Group's productions facilities. New price increases were both announced and implemented to customers in stages to offset the broad inflationary pressure to restore the margin as quickly as possible. There was an impairment of tangible assets by SEK –54 million (–4); see the section Impairment of intangible assets and tangible assets on page 9 for more information. In the comparison period, impairment of tangible assets amounted to SEK –4 million, as a result of a closed production facility.

Operating profit

Operating profit, before items affecting comparability, amounted to SEK 30 million (157), corresponding to a margin of 0.8 percent (4.2) and the operating profit amounted to SEK –465 million (161). Amortisation and depreciation for the period amounted to SEK –161 million (–156), divided between SEK –48 million (–47) in amortisation of intangible fixed assets and SEK –113 million (–109) in depreciation of tangible fixed assets. In addition, impairments of intangible and tangible assets were made in an amount of SEK –480 million (–12); see the section Impairment of intangible assets and tangible assets on page 9 for more information. In the comparative period, impairment of SEK –8 million was recognised on intangible assets and of SEK –4 million on tangible assets as a result of a product development project being discontinued and a production facility being closed. EBITDA amounted to SEK 176 million (329) and EBITDA, before items affecting comparability, amounted to SEK 191 million (313), corresponding to a margin of 4.9 percent (8.3). The EBITDA margin decreased, essentially as a consequence of lower business volumes for comparable units and a weak gross margin trend. Selective investments in own brands continued to be made. Cost control and cost awareness in the Group were good. Large parts of the year were pervaded by work on the ongoing restructuring programme to lower the cost base and strengthen competitiveness. Synergies from the restructuring programme gradually began to be realised, starting in the third quarter.

Items affecting comparability

Items affecting comparability were included in the operating profit of SEK –495 million (4) and consisted of restructuring costs of SEK

–15 million (–1), impairment of intangible fixed assets by SEK –426 million (–8) and impairment of tangible fixed assets by SEK –54 million (–4). The comparison period also included a revalued conditional purchase price of SEK 21 million, returned part of a restructuring reserve of SEK 1 million, and acquisition-related costs of SEK –5 million, of which SEK –3 million was attributable to Vitality and SEK –2 million to System Frugt. Restructuring costs were attributable to the ongoing restructuring programme to lower the cost base. Impairments of tangible and intangible fixed assets were attributable to low capacity utilisation of machinery, as well as to impairment testing of cash-generating units, see under Impairment of intangible and tangible fixed assets on page 9 for more information.

Financial items

Net financial items amounted to SEK –64 million (–46). Interest expenses for external loans to credit institutions amounted to SEK –50 million (–34) and interest expenses attributable to leases were SEK –4 million (–4). Interest expenses to credit institutions increased as a consequence of gradually rising interest rates on credit facilities. Net translation differences on financial receivables and liabilities in foreign currency amounted to SEK –4 million (–2), of which SEK –8 million referred to a realised currency effect arising on the amortisation of loans to credit institutions in December. Other financial items amounted to SEK –6 million (–6).

Profit for the period

Profit for the period amounted to SEK –501 million (89), corresponding to earnings per share of SEK –6.73 (1.31) before dilution and of SEK –6.73 (1.30) after dilution. Tax on profit for the period amounted to SEK 28 million (–26), of which SEK –10 million (–19) consisted of current tax, SEK 1 million (0) was tax attributable to preceding years and SEK 37 million (7) was deferred tax. The effective tax rate was –5.2 percent (22.6). The low effective tax rate was essentially attributable to the non-tax-deductible impairment of consolidated goodwill.

Cash flow

Cash flow from operating activities amounted to SEK 203 million (–64) and improved as a result of stronger cash flow from changes in working capital driven by less capital being tied up in inventories and trade receivables. In the comparison period, however, operating receivables were negatively affected by a terminated factoring agreement, while new legislation in Sweden, with changed payment terms for agricultural and food products negatively affected operating liabilities. Cash flow from investing activities amounted to SEK –29 million (–175), consisting of investments in tangible and intangible fixed assets of SEK –35 million (–59), of which SEK –6 million (–31) involved an on-going expansion investment in South Europe, SEK 7 million involved a divestment of tangible fixed assets and SEK –1 million (–2) involved a change in financial assets. The comparison period also included a paid conditional purchase consideration of SEK –3 million regarding previous years' acquisitions and acquisitions of operations by SEK –111 million. Free cash flow amounted to SEK 180 million (–94). Cash flow from financing activities was SEK –108 million (94), comprising a new share issue for SEK 600 million (500), issue expenses of SEK –9 million (–6), loans raised of SEK 60 million (291), loan amortisations of SEK –701 million (–549), amortisations of lease liabilities by SEK –58 million (–58) and premiums of SEK 0 million paid in for the TO2022 /2025 warrant programme. The comparison period included premiums of SEK 2 million paid in for the TO2021/2024 warrant programme and the dividend paid of SEK –86 million. Cash flow for the period amounted to SEK 66 million (–145).

Liquidity and financial position

Cash and equivalents amounted to SEK 121 million (53) and there were unused credit facilities of SEK 587 million (490) at the end of the period. Net debt amounted to SEK 774 million (1,436) and was SEK 1,475 million at the end of the preceding quarter. The ratio between net debt and adjusted EBITDA on a rolling 12-month basis was a multiple of 4.4 (4.4), while it was a multiple of 7.4 at the end of the preceding quarter. Shareholders' equity amounted to SEK 3,082 million (2,875) and was SEK 2,474 million at the end of the preceding quarter. The changes consisted of the profit for the period of SEK –15 million, exchange differences on translation of foreign operations of SEK 36 million, a new share issue for SEK 600 million, and issue expenses of –13 SEK million. The equity/assets ratio was 62.8 percent (54.4) at the end of the period.

Division Nordics

71% Percentage net sales in the Group²

Division Nordics1	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Net sales	732	726	2,702	2,611
Gross profit	206	202	784	800
Gross margin, %	28.1	27.9	29.0	30.7
EBITDA	60	65	216	263
EBITDA margin, %	8.3	8.9	8.0	10.1

1 Earnings and margin measurements refer to before items affecting comparability unless otherwise stated.

October–December

Net sales

Net sales amounted to SEK 732 million (726), an increase of 0.7 percent, where the organic change in net sales was –3.2 percent. The organic change for own brands in external product sales was –2.7 percent. Sales remained strong for the division's largest brand, Friggs. However, volumes were more restrained for own brands in the organic products and consumer health products categories. Contract manufacturing saw continued strong sales growth, while sales volumes remained lower for licensed brands for comparable units.

Gross profit

Gross profit amounted to SEK 206 million (202), corresponding to a margin of 28.1 percent (27.9). Through improved management of price increases towards customers and a better managed supply chain, the division was able to report a small improvement in its margin. Taking into account continued high inflationary pressure, an unfavourable exchange rate trend for the division for both the EUR and USD and a somewhat unfavourable product mix, the margin improvement was particularly positive. New price increases were announced to offset further inflationary pressures.

EBITDA

EBITDA amounted to SEK 60 million (65), corresponding to a margin of 8.3 percent (8.9). Despite an improved gross profit, EBITDA ended up slightly lower than in the comparison period. The deterioration in EBITDA was primarily driven by selective investments in own brands, which could partly be offset by synergies derived from the ongoing restructuring programme. In addition, operational currency translation differences were more negative than in the comparison period.

January–December

Net sales

Net sales amounted to SEK 2,702 million (2,611), an increase of 3.5 percent, where the organic change in net sales was –3.5 percent. The organic change for own brands in external product sales was –2.8 percent. On the whole, the sales trend declined despite good growth among own brands in the healthfoods and consumer health products categories. However, our own brands in the organic products category faced continued challenges with a generally weak sales trend.

Gross profit

Gross profit amounted to SEK 784 million (800), corresponding to a margin of 29.0 percent (30.7). The negative development in the margin over the year was strongly driven by the high level of inflation, with increased prices for finished goods, raw materials, inputs and transport, which could not immediately be parried by price increases to customers and instead occurred with a delay. Rounds of new price increases have been implemented to offset broad inflationary pressure and to restore future margins. The margin was also negatively affected by an unfavourable exchange rate trend for both the EUR and USD.

EBITDA

Quarter Rolling, 12 months

SEK m SEK m

Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021

0

100

200

300

400

0

20

40

60

80

EBITDA amounted to SEK 216 million (263), corresponding to a margin of 8.0 percent (10.1). The EBITDA margin decreased essentially as a consequence of weak development in the gross margin. In addition, the EBITDA margin was affected by negative operating translation differences, which were positive in the comparison period. Extracting cost synergies from acquisitions, realising synergies from restructuring programmes and good cost control compensated only to a certain extent for the lower gross margin and increased sales costs, all essentially attributable to outbound freight.

Net sales per sales channel

Group-internal sales Others

Other specialist retail Healthfood stores Food Service Grocery trade Pharmacies

Percentage of own brands, income

–2.7 percent2

Organic growth of own brands3

Quarter Rolling, 12 months Net sales EBITDA, before items affecting 69 percent comparability ² 0 200 400 600 800 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 0 750 1500 2250 3000 SEK m SEK m

2 For Q4, 2022 3 For external product sales SEK m

Q4, 2022 Q4, 2021

0 200 400 600

Division North Europe 20% Percentage net sales

in the Group²

Division North Europe1	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Net sales	212	208	860	831
Gross profit	23	26	114	143
Gross margin, %	11.0	12.4	13.3	17.2
EBITDA	2	0	16	50
EBITDA margin, %	0.7	0.1	1.9	6.1

1 Earnings and margin measurements refer to before items affecting comparability unless otherwise stated.

October–December

Net sales

Net sales amounted to SEK 212 million (208), an increase of 1.9 percent, where the organic change in net sales was –5.9 percent. The organic change for own brands in external product sales was –8.3 percent, where sales to the healthfood stores sales channel developed more weakly. However, contract manufacturing had continued good sales growth, with sales volumes to healthfood retailers developing strongly. To a certain extent, demand for the division has shifted to private label, which has also been confirmed by customers.

Gross profit

Gross profit amounted to SEK 23 million (26), corresponding to a margin of 11.0 percent (12.4). The negative development in the margin was driven by an unfavourable product mix as a consequence of a higher proportion of sales of contract manufactured products with a generally lower margin, as well as of lower sales volumes overall, which were not fully offset by lower production overheads. The margin for the period and the comparative period was well below the division's target and historical levels, driven by the strong inflationary pressure with increased prices for raw materials, packaging materials and energy, which have yet to be fully offset by price increases at the next level. Customers were notified of new price increases to gradually be implemented over the next quarter with the aim of restoring the margin.

EBITDA

EBITDA amounted to SEK 2 million (0), corresponding to a margin of 0.7 percent (0.1). The weak EBITDA margin was a consequence of a weak gross margin, which was partially offset by good cost control and synergies derived from completed restructuring program.

January–December

Net sales

Net sales amounted to SEK 860 million (831), an increase of 3.5 percent, where the organic change in net sales was –1.2 percent. The organic change for own brands in external product sales was –1.2 percent. The sales trend for own brands was relatively stable with some growth during the first nine months driven, however, by sales to the food service sales channel due to fewer pandemic restrictions in society and increased restaurant visits compared with the previous year. Although contract manufacturing started the first nine months of the year weaker, it achieved a stronger end to the year and, for the year overall, these sales showed smaller organic growth in net sales, although taking price increases into account, underlying volumes were slightly weaker even for contract manufactured products.

Gross profit

Gross profit amounted to SEK 114 million (143), corresponding to a margin of 13.3 percent (17.2). The negative margin trend was driven strongly by an unfavourable product mix and the continued inflationary pressure, with rising prices for raw materials, input goods, energy and transport, which could not immediately be parried by price increases to customers, but that occur with a certain time lag. In addition, an unfavourable exchange rate trend for the USD contributed to the negative margin trend, as a considerable portion of raw materials are purchased in USD. New price increases were announced to customers and were implemented in batches to offset broad inflationary pressure and to restore the margin moving forwards.

EBITDA

EBITDA amounted to SEK 16 million (50), corresponding to a margin of 1.9 percent (6.1) and decreased essentially as a consequence of the lower gross profit.

Percentage of own brands, income

–8.3 percent2

Organic growth of own brands3

2 For Q4, 2022 3 For external product sales

Net sales per sales channel

Division South Europe Percentage net sales

in the Group² 9%

Division South Europe1	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Net sales	90	86	374	369
Gross profit	4	14	39	77
Gross margin, %	4.0	16.0	10.5	20.8
EBITDA	–10	4	–16	26
EBITDA margin, %	–10.7	4.6	–4.3	7.0

1 Earnings and margin measurements refer to before items affecting comparability unless otherwise stated.

October–December

Net sales

Net sales amounted to SEK 90 million (86), an increase of 5.2 percent, where the organic change in net sales was –2.9 percent. The organic change for own brands in external product sales was –11.9 percent. Sales volumes for contract manufactured products increased, while they decreased for both own and licensed brands. For own brands, sales generally developed weakly due to consumers increasingly choosing to make their purchases in the grocery trade instead of from healthfood stores, which remain the operations' largest sales channel. Sales to the grocery trade showed good growth due to newly rolled-out business volumes of contract manufactured products.

Gross profit

Gross profit amounted to SEK 4 million (14), corresponding to a margin of 4.0 percent (16.0). The negative margin trend was driven vigorously by the continued inflationary pressure, bringing higher prices for raw materials, packaging materials and other input goods that have yet to be offset through price increases at the next level. The margin was also negatively affected by an unfavourable product mix as a consequence of a higher proportion of sales of contract manufactured products. In addition, substantial but temporary additional costs at the newly commissioned production facility for plant-based meat alternatives continued to burden profit. Customers were notified of new price increases to gradually be implemented over the next quarter with the aim of restoring the margin.

EBITDA

EBITDA amounted to SEK –10 million (4), corresponding to a margin of –10.7 percent (4.6) and decreased as a consequence of the lower gross profit.

January–December

Net sales

Net sales amounted to SEK 374 million (369), an increase of 1.4 percent, where the organic change in net sales was –3.3 percent. The organic change in external product sales of own brands was –10.5 percent. Sales volumes for contract manufactured products increased, while they decreased for both own and licensed brands. As a whole, the sales trend weakened due to a weak trend among most own brands. Lower sales volumes to the specialist healthfood stores could not fully be offset by correspondingly higher volumes to the grocery trade.

Gross profit

Gross profit amounted to SEK 39 million (77), corresponding to a margin of 10.5 percent (20.8). The negative margin trend was driven strongly by continued inflationary pressure, with rising prices for raw materials, input goods and transport, which could not immediately be parried by price increases to customer, but that occur with a certain time lag. New price increases were announced to customers and were implemented in batches to offset broad inflationary pressure and to restore the margin moving forwards. The margin was also negatively affected by an unfavourable product mix and by certain temporary additional costs in June–December in the newly commissioned production facility for plant-based meat alternatives.

EBITDA

EBITDA amounted to SEK –16 million (26), corresponding to a margin of –4.3 percent (7.0) and decreased essentially as a consequence of the lower gross profit.

Percentage of own brands, income

–11.9 percent2

Organic growth of own brands3

Quarter Net sales EBITDA, before items affecting 71 percent comparability ² 0 30 60 90 120 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 0 100 200 300 400 SEK m SEK m

Rolling, 12 months

2 For Q4, 2022 3 For external product sales

MIDSONA AB (PUBL) * CORPORATE IDENTITY NUMBER 556241-5322 YEAR-END REPORT 2022 · 7

Net sales per sales channel

Other information

Financial calendar

APR	MAY	JUN	JUL	AUG	SEP	OCT	NOV	DEC
Interim Report		Annual General Meeting 2023,	Interim Report			Interim report
Jan–Mar 2023,		4 May 2023	January–June 2023, Jan–Sep 2023,
27 Apr 2023			20 July 2023			26 October 2023

Seasonal variations

Sales and earnings are affected to some extent by seasonal variations. Sales in the first and second quarter are affected by Easter week, depending on which quarter it occurs in. Easter week does not favour sales for the Group's product groups. Warm summer months normally entail lower sales for most product groups as the consumers prioritise different consumption. The second quarter of the year is usually the Group's weakest in terms of sales and profit. Sales are generally higher in the fourth quarter than in the first three quarters, which is mainly due to seasonally high deliveries of dried fruits and nuts prior to the holidays.

Parent Company

Net sales amounted to SEK 63 million (64), and related primarily to invoicing of services provided internally within the Group. The operating profit amounted to SEK –24 million (–24). The profit before tax amounted to SEK –425 million (13). The profit/loss before tax included dividends from subsidiaries of SEK 1 million (2), of which SEK 1 million (1) was anticipated, the impairment of shares in subsidiaries by SEK –450 million (0) and Group contributions received of SEK 67 million (31). Net financial items included exchange-rate differences on financial receivables and liabilities in foreign currency of SEK –8 million (–2) and exchange-rate differences of SEK 6 million (13) on net investment in subsidiaries. Cash and cash equivalents, including unutilised credit facilities, amounted to SEK 662 million (492). Borrowing from credit institutions was SEK 697 million (1,273) at the end of the period. In December, the Parent Company implemented an additional amortisation of SEK 578 million on its liabilities to credit institutions using proceeds from the new share issue. On the balance sheet date, there were 16 employees (18).

Closely-related parties

In August 2022, warrants were transferred to senior executives on market terms, see Note 6 Change in the number of shares in the Group on page 18 for further information. Midsona's principal shareholder, Stena Adactum AB, undertook to subscribe for its pro rata share of the share issue and has issued an underwriting guarantee for the remainder of the issue. The warranty provision amounted to SEK 4 million. For further details of the new share issue, please see Significant events January–December on page 9 and Note 6 Change in the number of shares in the Group on page 18. Beyond this, there were no significant related party transactions during the period January – December. See also Note 33 Related parties on page 160 in the 2021 Annual Report for a description of the Group's and the Parent Company's related-party transactions.

Risks and uncertainties

In its operations, the Group is subject to operational, market, financial and sustainability risks that may affect profits to a greater or lesser extent. In the first quarter of 2022, the security policy situation in Europe changed drastically with Russia's invasion of Ukraine. Midsona had no material direct customer or supplier exposure in the countries concerned – Ukraine, Russia and Belarus, but was strongly indirectly affected by the accelerated inflationary pressures with gradually rising prices on commodities, completed goods, packaging materials, energy and transport as a result of the Ukraine crisis. In addition, Ukraine is a major exporter of important cereals, such as wheat, maize and sunflower seeds, which are included as ingredients in some of the Group's finished products. Logistics problems in transporting last year's grain crops out of the country rapidly pushed up world market prices, severely impacting already hard-pressed subcontractors. In the spring, large areas of arable land were left un-sown as they had become theatres of war, resulting both in shortages and in already high global prices for certain cereals becoming further inflated. For certain cereals, the situation improved somewhat when the blockade of Ukrainian ports was lifted in the third quarter. There was some uncertainty regarding the outcome of the year's harvest of key raw materials such as chia and sesame seeds, nuts and rice given the prevailing climate-related risks. For chia and sesame seeds and nuts, the results of the harvest were relatively good, while for rice they were less favourable due to drought in Italy and floods in Pakistan, for example. This meant that prices for certain raw materials stabilised or even abated somewhat as a result of relatively good harvests, while the price scenario accelerated for other raw materials due to shortages.

The global transport situation worsened as a consequence partly of Asian ports being closed because of the pandemic and strikes at European ports, as well as the security policy situation in Europe, which together exerted further pressure on the supply chain, resulting in delivery delays and certain shortages. As lead times for certain transports were sometimes doubled, orders had to be placed significantly earlier. The global transport situation gradually improved during the fourth quarter however.

The major energy crisis that spread across Europe during the year, with rapidly rising electricity and gas prices, led to rising energy costs for some of the Group's production facilities. To date, the energy supply shortages and exceptionally high energy prices previously feared for the winter months have, in part, failed to materialise. Some uncertainties nonetheless remain regarding the energy supply in Europe. Midsona has sought to balance the risks by signing both variable and fixed energy contracts for the Group's production facilities as earlier electricity contracts have expired.

An overall assessment would indicate that the Ukraine crisis and other unfavourable external factors will continue to negatively affect the Group's earnings and financial position in the short term, as there is a built-in delay between price increases being announced and their impact on gross profit being felt. This lead time is typically longer for contract manufacturing assignments, which make up approximately 15 percent of the Group's income, as a result of the contracts being fixed and typically running for a year at a time. Volatility in prices for raw materials, packaging materials, energy and transport, as well as exchange rate trends for key currencies, including USD and EUR, will remain an ongoing challenge for the Group. Price trends will likely continue to rise for some raw materials and packaging materials, while they will stabilise or even abate for other raw materials, packaging materials, energy and for road transports. For maritime transports, the pricing scenario improved in the fourth quarter with declining global demand for such transports.

In 2022, central and national banks in Europe rapidly raised their key interest rates to dampen the increased inflationary pressure, resulting in rapidly rising market rates. For the Group, this resulted in higher interest expenses on its financing. In the short-term perspective, we expect further interest rate hikes to overcome inflationary pressure. This will result in continued slowdowns in economic development, placing consumers' private finances under further pressure, with eroded purchasing power as a consequence. The harsher private finance climate for consumers has already led to a temporary shift towards more private label products in the lower price segment. In the short term, this will certainly entail additional challenges regarding demand for some of the Group's product categories.

Beyond the aforementioned, the assessment is that no new significant risks or uncertainties have arisen. For a detailed account of risks and uncertainty factors, please see the section Risks and risk management on pages 116–125 and Note 31 Financial risk management on pages 158–160 in the 2021 Annual Report.

Significant events January–December

Customer agreement

A contract manufacturing agreement was signed with Mercadona, Spain's largest grocery trade chain, for deliveries of plant-based meat alternatives. It is estimated that the customer agreement will generate about SEK 30–40 million in net sales annually, with production taking place at the production facility in Spain.

Prestigious appointment for supplier engagement

The global environmental initiative CDP named Midsona a Supplier Engagement Leader for its commitment along the entire supply chain. The award means that Midsona is one of the best companies globally when it comes to climate change strategy and leadership.

Change in Group Management

In addition to her current role, Director Legal, Tora Molander, has been appointed Risk and Sustainability Manager for the Midsona Group and is a member of Group Management as of 1 April 2022.

Security situation in Ukraine

Midsona has no material direct customer or supplier exposure in Ukraine, Russia or Belarus. However, the events in Ukraine have indirectly had major negative consequences for the Group through gradually rising prices for finished goods, raw materials, input goods, transport and energy, which could not immediately be parried by price increases to customers. The Ukraine crisis has also caused increased turmoil in financial markets, resulting in, for example, high volatility in major currency rates and rising market interest rates. As Ukraine is a major grain exporter, the situation will likely cause both shortages in, and rising world market prices for, certain commodities. Midsona is monitoring the Ukraine crisis meticulously and will implement the required measures as necessary.

Restructuring programme

In April, a decision was made to implement a restructuring programme as a measure to strengthen competitiveness. The ambition is to reduce the cost base by SEK 40 million on an annual basis through structural changes, including staff cutbacks, as far as possible by terminating contracts with hired staff and through natural staff redundancies.

In October, the restructuring programme was expanded with new activities being added aimed at lowering the cost base by a further SEK 20 million annually. Accordingly, it was decided, during the year, to lower the cost base SEK 60 million in total through structural changes.

Award

Alongside two other companies, Midsona won the 2022 Symbios award, which recognises Swedish companies that successfully combine responsible behaviour with profitable growth.

Distribution agreement

Midsona's distribution agreement for the Compeed, EllaOne and Norlevo brands in the Nordic market has been terminated by the new owner Perrigo as of 31 December 2022, as they intend to coordinate in-house distribution with their other products in the European market. The sales assignment accounted for about 3 percent of the Group's net sales in 2021 with a below-average gross margin. After deducting expenses and certain cost savings, the effect on profit is expected to be limited.

Impairment of intangible and tangible fixed assets

In August, impairment in a tangible fixed asset attributable to North Europe was recognised due to low capacity utilisation. Following an indication of impairment, the tangible fixed asset was tested for impairment test, leading to the recoverable amount being reduced by SEK 54 million (EUR 5.1 million).

Impairment testing of cash-generating units identified a need to recognise impairment in North Europe and South Europe, to which consolidated goodwill had been allocated. In September,

Review by auditor

This year-end report has been reviewed by the Company's auditors.

impairment of SEK 175 million (EUR 16.6 million) was recognised in the goodwill of the cash-generating unit North Europe and impairment of SEK 246 million (EUR 23.4 million) was recognised in the goodwill of the cash-generating unit South Europe – SEK 421 million (EUR 40.0 million) in total. A change in certain key assumptions led to lower estimated future cash flows for each cash-generating unit, see Note 2 Important estimates and assessments on pages 14–15.

Extended financing agreement

In October, the existing financing agreement with Danske Bank and Svensk Exportkredit was extended for another year on largely the same terms as the existing agreement, now extending until September 2025. The extended agreement included a proviso to make an additional loan repayment to credit institutions following the implementation of the new share issue.

New share issue

On 25 October, following the approval of an Extraordinary General Meeting on 24 November, Midsona's Board of Directors resolved to issue 298,320 new Series A shares and 72,415,720 Series B shares with preferential rights for existing shareholders. Midsona's principal shareholder, Stena Adactum AB, undertook to subscribe for its pro rata share of the share issue and issued an underwriting guarantee for the remainder of the issue. In December, Midsona gained an injection of SEK 600 million before transaction expenses. The transaction expenses amounted to SEK 16 million. The proceeds of the new share issue were used to repay loans to credit institutions by SEK 578 million to lower the debt ratio and thereby strengthen the financial position to promote a long-term sustainable capital structure and increase financial flexibility.

Prestigious climate rating

The global environmental initiative CDP, an international non-profit organisation that helps companies make their environmental impact visible, awarded Midsona the grade A- for the second consecutive year, placing the Company among the best listed companies in the world with regard to reporting on its climate strategies.

Changes on the Board of Directors

At an Extraordinary General Meeting on 20 December 2022, Patrik Andersson and Anders Svensson were elected as new Board members in accordance with the Nomination Committee's proposal. Patrik Andersson was also elected as Chairman of the Board in accordance with the Nomination Committee's proposal. Both Patrik Andersson and Anders Svensson are independent in relation to the Company, its management and its major shareholders. With Chairman of the Board Ola Erici and Board Member Peter Wahlberg having declined re-election, the Board of Directors of Midsona AB now comprises Patrik Anderson (Chairman), Heli Arantola, Sandra Kottenauer, Jari Latvanen, Henrik Stenqvist, Anders Svensson and Johan Wester.

Board of Directors' dividend proposal

The Board of Directors proposes that no dividend be paid for the 2022 financial year. No dividend was paid for financial year 2021 either.

Annual Report

The Annual Report for 2022 will be available on the website www.midsona.com 5 April 2023. The printed Annual Report will preliminarily be available at the head office in Malmö on 20 April 2023. Printed copies of the Annual Report will be sent to shareholders on request.

Annual General Meeting 2023

The Annual General Meeting will be held in Malmö on 4 May 2023. The Board of Directors will preliminarily publish its invitation to the Annual General Meeting on 3 April 2023.

Malmö, 2 February 2023 Midsona AB (publ) Board of Directors

Report of Review of Interim Financial Information

Introduction

We have reviewed the year-end report (interim report) of Midsona AB (publ) for the period 1 January 2022 to 31 December 2022. The Board of Directors and the CEO are responsible for the preparation and presentation of the Interim Report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion regarding the Interim Report based on our review.

Scope and focus of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is considerably smaller in scope than an audit conducted in accordance with ISA and other generally accepted auditing standards.

The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Consequently, the conclusion based on a review does not give the same level of assurance as a conclusion based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, 2 February 2023 Deloitte AB

Jeanette Roosberg AUTHORISED PUBLIC ACCOUNTANT

Financial statements

Summary consolidated income statement

SEK million	Note	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Net sales	3.4	1,027	1,012	3,899	3,773
Expenses for goods sold		–797	–770	–3,021	–2,758
Gross profit		230	242	878	1,015
Selling expenses		–159	–148	–1,045	–592
Administrative expenses		–76	–76	–298	–289
Other operating income		3	3	10	35
Other operating expenses		–4	–4	–10	–8
Operating profit	3	–6	17	–465	161
Financial income		12	5	67	11
Financial expenses		–39	–16	–131	–57
Profit before tax		–33	6	–529	115
Tax on profit for the period		18	–5	28	–26
Profit for the period		–15	1	–501	89
Profit for the period is divided between:
Parent Company shareholders (SEK million)		–15	1	–501	89
Earnings per share before dilution attributable to Parent Company shareholders (SEK)		–0.19	0.01	–6.73	1.31
Earnings per share after dilution attributable to Parent Company shareholders (SEK)		–0.19	0.01	–6.73	1.30

Summary consolidated statement of comprehensive income

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Profit for the period	–15	1	–501	89
Items that have or can be reallocated to profit for the period
Translation differences for the period on translation of foreign operations	36	16	121	63
Other comprehensive income for the period	36	16	121	63
Comprehensive income for the period	21	17	–380	152
Comprehensive income for the period is divided between:
Parent Company shareholders (SEK million)	21	17	–380	152

During the quarter, the Spanish brand Vegetalia launched two new burgers, lentils and curry as well as red beans and ginger.

Summary consolidated balance sheet

SEK million	Note	31 Dec 2022	31 Dec 2021
Intangible fixed assets		3,020	3,364
Tangible fixed assets		451	522
Non-current receivables		5	4
Deferred tax assets		116	91
Fixed assets		3,592	3,981
Inventories		727	783
Accounts receivable		398	403
Tax receivables		17	18
Other receivables		27	33
Prepaid expenses and accrued income		22	16
Cash and cash equivalents		121	53
Current assets		1,312	1,306
Assets	5	4,904	5,287
Share capital	6	727	363
Additional paid-up capital		1,850	1,627
Reserves		126	5
Profit brought forward, including profit for the period		379	880
Shareholders' equity		3,082	2,875
Non-current interest-bearing liabilities		776	1,314
Other non-current liabilities		8	11
Deferred tax liabilities		347	347
Non-current liabilities		1,131	1,672
Current interest-bearing liabilities		119	175
Accounts payable		358	342
Tax liabilities		7	15
Other current liabilities		43	41
Accrued expenses and deferred income		164	167
Current liabilities		691	740
Liabilities	5	1,822	2,412
Shareholders' equity and liabilities		4,904	5,287

Summary consolidated changes in shareholders' equity

SEK million	Share capital	Additional paid-up capital	Reserves	Profit brought forward, incl. profit for the period	Shareholders' equity
Opening shareholders' equity, 1 Jan 2021	325	1,169	–58	877	2,313
Profit for the period	–	–	–	89	89
Other comprehensive income for the period	–	–	63	–	63
Comprehensive income for the period	–	–	63	89	152
New share issue	37	463	–	–	500
Issue expenses	–	–6	–	–	–6
Completed issue of warrant programme, TO2017/2020	1	–1	–	–	0
Issue expenses, TO2017/2020	–	0	–	–	0
Premium paid in on issuing warrant programme, TO2021/2024	–	2	–	–	2
Dividend	–	–	–	–86	–86
Transactions with the Group's owners	38	458	–	–86	410
Closing shareholders' equity, 31 Dec 2021	363	1,627	5	880	2,875
Opening shareholders' equity, 1 Jan 2022	363	1,627	5	880	2,875
Profit for the period	–	–	–	–501	–501
Other comprehensive income for the period	–	–	121	–	121
Comprehensive income for the period	–	–	121	–501	–380
New share issue	364	236	–	–	600
Issue expenses	–	–13	–	–	–13
Premium paid in on issuing warrant programme, TO2022/2025	–	0	–	–	0
Transactions with the Group's owners	364	223	–	–	587
Closing shareholders' equity, 31 Dec 2022	727	1,850	126	379	3,082

Summary consolidated cash flow statement

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Profit/loss before tax	–33	6	–529	115
Adjustment for items not included in cash flow	63	47	683	141
Income tax paid	–7	3	–13	–12
Cash flow from operating activities before changes in working capital	23	56	141	244
Increase (–)/decrease (+) in inventories	136	8	76	–124
Increase (–)/decrease (+) in operating receivables	57	24	27	–80
Increase (+)/decrease (–) in operating liabilities	–88	–104	–41	–104
Changes in working capital	105	–72	62	–308
Cash flow from operating activities	128	–16	203	–64
Acquisitions of companies or operations	–	–111	–	–114
Divestments of companies or operations	0	–	0	–
Acquisitions of intangible assets	0	0	–1	–5
Acquisitions of tangible assets	–8	–15	–34	–54
Divestments of tangible assets	0	–	7	–
Change in financial assets	–1	1	–1	–2
Cash flow from investing activities	–9	–125	–29	–175
Cash flow after investing activities	119	–141	174	–239
New share issue	600	–	600	500
Issue expenses	–9	–6	–9	–6
Premium paid in, warrant programme, TO2021/2024	–	–	–	2
Premium paid in, warrant programme, TO2022/2025	0	–	0	–
Loans raised	–24	140	60	291
Repayment of loans	–609	–69	–701	–549
Amortisation of lease liabilities	–15	–14	–58	–58
Dividend paid	–	–44	–	–86
Cash flow from financing activities	–57	7	–108	94
Cash flow for the period	62	–134	66	–145
Cash and equivalents at beginning of period	55	185	53	195
Translation difference in cash and cash equivalents	4	2	2	3
Cash and cash equivalents at end of the period	121	53	121	53

Summary income statement, Parent Company

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Net sales	16	15	63	64
Administrative expenses	–22	–22	–85	–88
Other operating income	0	0	0	0
Other operating expenses	–2	0	–2	0
Operating profit	–8	–7	–24	–24
Result from participations in subsidiaries	–449	2	–449	3
Financial income	32	17	120	54
Financial expenses	–36	–12	–124	–46
Profit after financial items	–461	0	–477	–13
Allocations	52	26	52	26
Profit before tax	–409	26	–425	13
Tax on profit for the period	–5	0	–5	0
Profit for the period1	–414	26	–430	13

1 Profit for the period and comprehensive income for the period are the same, as the Parent Company has no transactions that are reported in other comprehensive income.

During the quarter, Norwegian brand Biopharma launched vitamin D as effervescent, lemon-flavoured tablets.

	Summary balance sheet, Parent Company
--	---------------------------------------	--	--	--

SEK million	Note	31 Dec 2022	31 Dec 2021
Intangible fixed assets		42	51
Tangible fixed assets		3	5
Participations in subsidiaries		2,481	2,535
Receivables from subsidiaries		1,030	1,321
Deferred tax assets		0	2
Financial fixed assets		3,511	3,858
Fixed assets		3,556	3,914
Receivables from subsidiaries		61	117
Other receivables		11	12
Cash and bank balances		75	2
Current assets		147	131
Assets	5	3,703	4,045
Share capital	6	727	363
Statutory reserve		58	58
Profit brought forward, including profit for the period and other reserves		1,912	2,118
Shareholders' equity		2,697	2,539
Untaxed reserves		20	5
Liabilities to credit institutions		640	1,166
Other non-current liabilities		0	0
Non-current liabilities		640	1,166
Liabilities to credit institutions		57	107
Liabilities to subsidiaries		264	212
Other current liabilities		25	16
Current liabilities		346	335
Equity and liabilities	5	3,703	4,045

Notes to the financial statements

Note 1 | Accounting principles

With regard to the Group, this Year-end Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act (ÅRL). In addition to being presented in the financial statements and their notes, disclosures in accordance with IAS 34, page 16A are also presented in other parts of the year-end report. The Parent Company's accounts are prepared in accordance with the Annual Accounts Act (ÅRL) and recommendation RFR 2 Accounting for Legal Entities, from the Swedish Financial Reporting Board. The statements published by the Swedish Financial Reporting Board concerning listed companies are also applied, meaning that the Parent Company must apply all EU-approved IFRS and statements as far as possible within the framework of the Annual Accounts Act, the Pension Protection Act and taking the relationship between accounting and taxation into account.

In the year-end report for 2022, the same accounting principles and calculation methods were applied as in the last annual report issued for 2021 (Note 1 Accounting principles, pages 136–142) The new standards and the amendments and revisions to standards and new interpretations (IFRIC) that came into effect on 1 January 2022 had no significant impact on the Group's accounting for the period January–December 2022.

Note 2 | Significant estimates and assumptions

Preparing the financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the application of the accounting principles and the reported amounts of assets, liabilities, income and expenses. The actual outcome may differ from these estimates and assumptions.

For a detailed account of the assessments made by management in the application of IFRS and that have a significant impact on the financial state-

Reporting of cloud service events

IFRIC has published agenda decisions for how companies should report expenses in a Software-as-a-Service (SaaS) arrangement where access to software is obtained via the cloud, and configuring and adapting such software is also achieved through a cloud-based service arrangement. The decisions clarify that companies may not capitalise expenditures attributable to the implementation of a cloud-based service arrangement if they do not have control over the application, and that expenses for the configuration and adaptation of software services in such a cloud-based service arrangement must in many cases be reported as an expense in the same period. The assessment of the period for which the services are obtained depends, however, on whether they are distinct in relation to the service of obtaining access to the software. If the services are judged to be distinct, the expense is reported in the same period as the services are performed. If the services are not deemed distinct, the expenses are reported as an expense in the same period as the Company receives access to the software, which normally entails a prepaid expense in the balance sheet over the term of the agreement. Midsona has analysed whether the IFRIC clarifications for reporting cloud-based service arrangements would have any impact on the financial statements. The analysis resulted in the current management being in all material respects consistent with the principles regarding SaaS set out in the agenda decisions and in IAS 38 Intangible assets.

ments, as well as estimates made that could entail significant adjustments to subsequent financial statements, please refer to Note 35 Important estimates and assessments on page 162 of the 2021 Annual Report.

In the third quarter, new estimates and assessments were made in our assumptions regarding future conditions and regarding parameters affecting the future profitability of those cash-generating units within the Group to which goodwill has been allocated. A challenging market and unfavourable macroeconomic factors led to certain revisions in net sales growth, the development of the product margin and the discount rate, resulting in the calculated recovery value for the cash-generating units North Europe and South Europe being lower than their reported values – for this reason impairment was recognised in the goodwill of these units by SEK 175 million (EUR 16.6 million) and SEK 246 million (EUR 23.4 million) respectively. The dramatically changed conditions were difficult to predict. For the cash-generating unit Nordics, the assessment of the Company management's remained that no reasonable changes to the key assumptions would lead to the calculated recovery value being lower than the reported value. Moving forward, Company management will be carefully monitoring the development of these the cash-generating units in the event that new estimates and assessments must be made in the assumptions due to altered conditions. New estimates and assessments were also

made regarding a tangible fixed asset, attributable to North Europe, due to low capacity utilisation. Following an indication of impairment, the tangible fixed asset was tested for impairment, leading to the recoverable amount being reduced by SEK 54 million (EUR 5.1 million).

In the fourth quarter, estimates and assessments were made as to whether tax loss carryforwards generated in some geographic markets over the year could be capitalised as deferred tax assets to be realised against future taxable income. Company management made the assessment that most of the tax loss carryforwards generated could be capitalised as deferred tax assets. The assessment is that, with the Group's current structure and future plans, the opportunities to exercise capitalised tax loss carryforwards are well founded.

Beyond the estimates and assessments reported, no significant new ones have been added since the latest annual report was issued.

Note 3 | Operating segments, Group

SEK million	Nordics		North Europe		South Europe		Group-wide functions		Group
October–December	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Net sales, external	729	725	209	202	89	85	–	–	1,027	1,012
Net sales, intra-Group	3	1	3	6	1	1	–7	–8	–	–
Net sales	732	726	212	208	90	86	–7	–8	1,027	1,012
Expenses for goods sold	–526	–524	–191	–182	–86	–72	6	8	–797	–770
Gross profit	206	202	21	26	4	14	–1	0	230	242
Other operating expenses	–160	–155	–36	–37	–19	–15	–21	–18	–236	–225
Operating profit	46	47	–15	–11	–15	–1	–22	–18	–6	17
Financial items									–27	–11
Profit before tax									–33	6
Significant income and expense items reported in the income statement:
Items affecting comparability¹	1	4	6	–	0	–	4	–1	11	3
Depreciation/amortisation and impairment	13	14	11	11	6	5	15	11	45	41
Gross profit, before items affecting comparability	206	202	23	26	4	14	–1	0	232	242
Operating profit, before items affecting comparability	47	51	–9	–11	–15	–1	–18	–19	5	20
EBITDA, before items affecting comparability	60	65	2	0	–9	4	–8	–8	45	61
Average number of employees	411	450	203	232	158	145	16	18	788	845
Number of employees as per the balance sheet date	408	459	200	229	156	143	16	18	780	849

1 For a specification of items affecting comparability, refer to the definitions and reconciliations against IFRS, Group, on pages 19–20.

SEK million	Nordics		North Europe		South Europe		Group-wide functions		Group
January–December	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Net sales, external	2,692	2,601	841	807	366	365	–	–	3,899	3,773
Net sales, intra-Group	10	10	19	24	8	4	–37	–38	–	–
Net sales	2,702	2,611	860	831	374	369	–37	–38	3,899	3,773
Expenses for goods sold	–1,918	–1,811	–802	–688	–336	–296	35	37	–3,021	–2,758
Gross profit	784	800	58	143	38	73	–2	–1	878	1,015
Other operating expenses	–626	–593	–147	–126	–78	–71	–492	–64	–1,343	–854
Operating profit	158	207	–89	17	–40	2	–494	–65	–465	161
Financial items									–64	–46
Profit before tax									–529	115
Significant income and expense items reported in the income statement:
Items affecting comparability¹	6	3	62	–10	2	5	425	–2	495	–4
Depreciation/amortisation and impairment	52	53	97	43	22	23	470	49	641	168
Gross profit, before items affecting comparability	784	800	114	143	39	77	–2	–1	935	1,019
Operating profit, before items affecting comparability	164	210	–27	7	–38	7	–69	–67	30	157
EBITDA, before items affecting comparability	216	263	16	50	–16	26	–25	–26	191	313
Average number of employees	439	442	214	225	150	148	17	17	820	832
Number of employees as per the balance sheet date	408	459	200	229	156	143	16	18	780	849

1 For a specification of items affecting comparability, refer to the definitions and reconciliations against IFRS, Group, on pages 19–20.

Note 4 | Breakdown of income, Group

SEK million	Nordics		North Europe		South Europe		Group-wide functions		Group
October–December	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Geographical areas¹
Sweden	289	291	0	0	0	0	–1	–1	288	290
Denmark	179	170	3	5	1	0	–3	–4	180	171
Finland	114	112	–	–	0	0	–	–	114	112
Norway	116	124	0	0	1	0	–1	0	116	124
France	1	1	4	6	49	47	0	–1	54	53
Spain	3	2	6	4	35	34	0	–1	44	39
Germany	3	2	176	169	0	1	–2	–1	177	171
Rest of Europe	24	23	23	24	2	2	–	–	49	49
Other countries outside Europe	3	1	0	0	2	2	–	–	5	3
Net sales	732	726	212	208	90	86	–7	–8	1,027	1,012
Sales channel
Pharmacies	105	104	–	–	–	–	–	–	105	104
Grocery trade	484	484	85	88	28	25	–	–	597	597
Food Service	27	25	63	59	1	2	–	–	91	86
Healthfood stores	44	38	58	50	49	50	–	–	151	138
Other specialist retailers	34	35	5	5	–	0	–	–	39	40
Others	35	39	–2	0	11	8	–	–	44	47
Group-internal sales	3	1	3	6	1	1	–7	–8	–	–
Net sales	732	726	212	208	90	86	–7	–8	1,027	1,012
Product categories
Organic products	176	183	212	208	89	85	–6	–7	471	469
Healthfoods	357	343	–	–	–	–	–	–	357	343
Consumer health products	195	198	–	–	–	–	–	–	195	198
Services linked to product handling	4	2	0	0	1	1	–1	–1	4	2
Net sales	732	726	212	208	90	86	–7	–8	1,027	1,012
Brands
Own	504	499	130	134	64	66	–6	–7	692	692
Licensed	127	140	–	–	8	7	–	–	135	147
Contract manufacture	97	85	82	74	17	12	–	–	196	171
Services linked to product handling	4	2	0	0	1	1	–1	–1	4	2
Net sales	732	726	212	208	90	86	–7	–8	1,027	1,012

1 Income from external customers is attributable to individual geographical areas according to the country in which the customer is domiciled.

SEK million	Nordics		North Europe		South Europe		Group-wide functions		Group
January–December	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Geographical areas¹
Sweden	1,110	1,120	0	0	3	1	–5	–2	1,108	1,119
Denmark	592	589	15	19	2	1	–15	–17	594	592
Finland	442	327	–	–	0	0	–	–	442	327
Norway	440	456	0	0	3	0	–3	0	440	456
France	3	4	18	23	202	205	–5	–7	218	225
Spain	11	12	18	14	142	137	–1	–1	170	162
Germany	9	10	718	683	1	3	–8	–11	720	685
Rest of Europe	89	89	90	91	11	9	–	–	190	189
Other countries outside Europe	6	4	1	1	10	13	–	–	17	18
Net sales	2,702	2,611	860	831	374	369	–37	–38	3,899	3,773
Sales channel
Pharmacies	422	376	–	–	–	–	–	–	422	376
Grocery trade	1,736	1,730	352	366	121	105	–	–	2,209	2,201
Food Service	100	85	254	222	6	5	–	–	360	312
Healthfood stores	165	150	218	196	194	208	–	–	577	554
Other specialist retailers	130	126	19	19	–	0	–	–	149	145
Others	139	134	–2	4	45	47	–	–	182	185
Group-internal sales	10	10	19	24	8	4	–37	–38	–	–
Net sales	2,702	2,611	860	831	374	369	–37	–38	3,899	3,773
Product categories
Organic products	699	750	860	831	372	368	–35	–37	1,896	1,912
Healthfoods	1,201	1,146	–	–	–	–	–	–	1,201	1,146
Consumer health products	788	705	–	–	–	–	–	–	788	705
Services linked to product handling	14	10	0	0	2	1	–2	–1	14	10
Net sales	2,702	2,611	860	831	374	369	–37	–38	3,899	3,773
Brands
Own	1,896	1,852	531	519	275	288	–35	–37	2,667	2,622
Licensed	520	494	–	–	32	32	–	–	552	526
Contract manufacture	272	255	329	312	65	48	–	–	666	615
Services linked to product handling	14	10	0	0	2	1	–2	–1	14	10
Net sales	2,702	2,611	860	831	374	369	–37	–38	3,899	3,773

1 Income from external customers is attributable to individual geographical areas according to the country in which the customer is domiciled.

MIDSONA AB (PUBL) * CORPORATE IDENTITY NUMBER 556241-5322 YEAR-END REPORT 2022 · 16

Not 5 | Fair value and reported in the balance sheet, Group

Fair value

The carrying amount on non-current receivables, accounts receivable, other receivables, cash and cash equivalents, other non-current receivables,

accounts payable and other current liabilities measured at amortised cost constitutes a reasonable approximation of fair value.

SEK million	31 Dec 2022	31 Dec 2021
Assets
Financial instruments measured at amortised cost
Non-current receivables	5	4
Accounts receivable	398	403
Other receivables	27	33
Cash and cash equivalents	121	53
Total	551	493
Total receivables	551	493
Liabilities
Financial instruments measured at fair value via the income statement
Other current liabilities	2	–
Total	2	–
Financial instruments measured at amortised cost
Non-current interest-bearing liabilities	776	1,314
Other non-current liabilities	8	11
Current interest-bearing liabilities	119	175
Accounts payable	358	342
Other current liabilities	41	41

Total 1,302 3,362

Total liabilities and provisions 1,304 3,362

Certain disclosures regarding financial instruments assessed at fair value through profit for the year

The Group held financial instruments in the form of forward exchange contracts recognised at fair value via the consolidated income statement. The valuation was at level 2, in accordance with IFRS 13 Fair Value Measurement. Actual values were based on quotes from brokers. Similar contracts were traded on an active market and the rates reflected actual transactions on comparable instruments. In the comparison period, the Group held no such financial instruments, recognised at fair value in the balance sheet.

Netting agreements and similar agreements

For derivative counterparties, there are ISDA agreements, meaning that derivative items can be reported net under certain conditions. There were reported financial liabilities attributable to derivative instruments of SEK 2 million in the

consolidated balance sheet for the comparison period, which were covered by a legally binding framework agreement on netting. The Group holds no derivative instruments recognised net in its consolidated balance sheet.

Calculation of fair value

Fair value of interest bearing liabilities is calculated based on future cash flows of principal and interest discounted at the current market rate on the balance sheet date. Long-term interest-bearing liabilities essentially mature at variable interest rates and therefore correspond essentially to fair value with a carrying amount. For current interest-bearing liabilities, no discount is applied and the fair value corresponds, in all material respects, to the carrying amount. For further information on the fair value measurement of financial assets and liabilities, refer to Note 34 Valuation of financial assets and liabilities at fair value and the category breakdown on pages 160–161 in the 2021 Annual Report.

During the quarter, a spice calendar was launched in Norway under the Helios brand.

Note 6 | Change in number of shares, Group

Number of shares	Series A shares	Series B shares	Total
Number of shares, 1 January 2021	755,820	64,248,788	65,004,608
Redemption of warrants	–	213,180	213,180
New share issue	–	7,496,252	7,496,252
Reclassification	–457,500	457,500	–
Number of shares, 31 December 2021	298,320	72,415,720	72,714,040
Number of shares, 1 January 2022	298,320	72,415,720	72,714,040
New share issue	298,320	72,415,720	72,714,040
Number of shares, 31 December 2022	596,640	144,831,440	145,428,080
Quota value per share, SEK			5.00
Share capital on the balance sheet date, SEK			727,140,400
Votes on the balance sheet date, number			150,797,840

New share issue

The new issue in December of 298,320 Series A shares and 72,415,720 Series B shares, with preferential rights for existing shareholders, showed that 277,448 Series B shares, corresponding to approximately 93.0 percent of the Series A shares offered, as well as 38,770,076 Series B shares, corresponding to approximately 53.5 percent of the Series B shares offered were subscribed with the support of subscription rights. In addition, 20,872 Series A shares, corresponding to around 7.0 percent of the Series A shares offered, as well as 225,475 Series B shares, corresponding to around 0.3 percent of the Series B shares offered, were subscribed for without the support of subscription rights. The remaining 33,420,169 Series B shares, corresponding to approximately 46.2 percent of the Series B shares offered, were assigned to Stena Adactum AB as the issue underwriter.

The new shares were registered with the Swedish Companies Registration Office in December 2022 and introduced in the share register maintained by Euroclear Sweden in January 2023.

Reclassification of Series A shares to Series B

In December, at the request of shareholders, a reclassification of 172,856 Series A shares to Series B shares was initiated. The reclassification was registered in January 2023, whereby the number of votes changed to 149,242,136.

Warrant programme

The subscription period for warrant programme TO2019/2022, potentially giving a maximum of 150,960 new B shares on full conversion, expired on 20 December 2022. No warrants were converted to B shares.

There were two warrant programmes outstanding at the end of the year. TO2021/2024, potentially giving a maximum of 171,000 new B shares given full conversion on the exercise of the warrants from 1 August 2024 to 20 December 2024. The subscription price for the option programme was recalculated at SEK 75.70 (previously SEK 75.85) in light of the completed rights issue. In August 2022, a total of 120,000 warrants inTO2022/2025 were transferred to senior executives. Each warrant entitles the holder to subscribe for one Series B share. The period during which the warrants may be exercised will be from 1 August 2025 to 20 December 2025. The subscription price for the option programme was recalculated at SEK 25.60 (previously SEK 25.66) in light of the completed rights issue. The transfer of the warrants took place at market terms based on a calculation according to the so-called Black & Scholes model done by PWC AB, which is to be considered independent in relation to Midsona. The fair value per warrant was SEK 3.82 at the time of the transaction in August 2022.

Because the average price for Series B shares was lower than the subscription price for TO2021/2024 and TO2022/2025 on the balance sheet date, earnings per share after dilution were not calculated. For more information on TO2021/2024, see Note 10 Employees, personnel expenses and senior executives' remuneration in the 2021 annual report, pages 146–148.

Average number of shares, Group

Number of shares (thousands)	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Average during the period	79,646	72,714	74,447	67,783
Average during the period, after full dilution	79,937	72,864	74,668	67,932

Note 7 | Acquisition analysis

The acquisition analysis for Vitality, which was presented preliminarily in the 2021 Year-end Report and the 2021 Annual Report, was approved without amendment in the third quarter of 2022.

Spanish brand Vegetalia launched two new falafels during the quarter, spicy falafel and sweet potato falafel.

Definitions

Midsona presents certain financial measures in the Year-end Report that are not defined under IFRS. Midsona considers these measures to provide useful supplemental information to investors and the Company's management as they facilitate the evaluation of the Company's performance. Because not all companies calculate financial measures in the same way, these are not always comparable to the measures used by other companies. Accordingly, these financial measures should not be considered a substitute for measurements as defined under IFRS. For the definition and purpose of respective measures not defined under IFRS, please see the Definitions section on pages 184–188 in the 2021 Annual Report. The following table presents reconciliations against IFRS.

IFRS reconciliations, Group

EBITDA. Operating profit before amortisation/depreciation and impairment of tangible and intangible assets

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Operating profit, before items affecting comparability	5	20	30	157
Items affecting comparability included in operating profit 1,2	–11	–3	–495	4
Operating profit	–6	17	–465	161
Amortisation of intangible assets	12	13	48	47
Impairment of intangible assets	5	–	426	8
Depreciation of tangible fixed assets	28	28	113	109
Impairment of tangible fixed assets	0	–	54	4
EBITDA	39	58	176	329
Items affecting comparability included in EBITDA 1,2	6	3	15	–16
EBITDA, before items affecting comparability	45	61	191	313
Net sales	1,027	1,012	3,899	3,773
EBITDA margin, before items affecting comparability	4.4%	6.0%	4.9%	8.3%

1 Specification of items affecting comparability

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Restructuring expenses, net	6	–	15	0
Revaluation of conditional purchase consideration	–	–	–	–21
Acquisition-related expenses	–	3	–	5
Impairment of intangible and tangible assets	5	–	480	12
Items affecting comparability included in operating profit	11	3	495	–4
Impairment of intangible and tangible assets	–5	–	–480	–12
Items affecting comparability included in EBITDA	6	3	15	–16

2 Corresponding line in the consolidated income statement

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Expenses for goods sold	2	–	57	4
Selling expenses	8	–	435	8
Administrative expenses	1	–	3	0
Other operating income	–	–	–	–21
Other operating expenses	–	3	0	5
Items affecting comparability included in operating profit	11	3	495	–4
Expenses for goods sold	–	–	–54	–4
Selling expenses	–5	–	–426	–8
Items affecting comparability included in EBITDA	6	3	15	–16

Adjusted EBITDA. EBITDA, rolling 12 months pro forma, excluding acquisition-related restructuring and transaction expenses

SEK million	Full year 2022	Full year 2021
EBITDA	176	329
Acquisition-related transaction expenses	–	–16
Pro forma adjustment	–	11
Adjusted EBITDA	176	324

In Germany, the Davert brand launched portion packs of apple and cinnamon flavoured porridge.

Net debt. Interest-bearing provisions and interest-bearing liabilities less cash and cash equivalents, including short-term investments

SEK million	31 Dec 2022	31 Dec 2021
Non-current interest-bearing liabilities	776	1,314
Current interest-bearing liabilities	119	175
Cash and cash equivalents ¹	–121	–53
Net debt	774	1,436

¹ There were no short-term investments equivalent to cash and cash equivalents at the end of the respective period.

Average capital employed. Total equity and liabilities less interest-bearing liabilities and deferred tax liability at the end of the period plus total shareholders' equity and liabilities less interest-bearing liabilities and deferred tax liability at the beginning of the period divided by 2

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Shareholders' equity and liabilities	4,904	5,287	4,904	5,287
Other non-current liabilities	–8	–11	–8	–11
Deferred tax liabilities	–347	–347	–347	–347
Accounts payable	–358	–342	–358	–342
Other current liabilities	–50	–56	–50	–56
Accrued expenses and deferred income	–164	–167	–164	–167
Capital employed	3,977	4,364	3,977	4,364
Capital employed at the beginning of the period	4,004	4,280	4,364	4,092
Average capital employed	3,991	4,322	4,171	4,228

Return on capital employed. Profit before tax plus financial expenses in relation to average capital employed

SEK million	Full year 2022	Full year 2021
Profit/loss before tax	–529	115
Financial expenses	131	57
Profit before taxes, excluding financial expenses	–398	172
Average capital employed	4,171	4,228
Return on capital employed, %	–9.5	4.1

Free cash flow. Cash flow from operating activities less cash flow from investing activities, excluding acquisitions/sales of operations, acquisitions/sales of trademarks and product rights and expansion investments

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Cash flow from operating activities	128	–16	203	–64
Cash flow from investment activities	–9	–125	–29	–175
Acquisitions of companies or operations	–	111	–	114
Expansion investment, new production line	1	5	6	31
Free cash flow	120	–25	180	–94

Organic change, net sales. Net change in sales between years adjusted for translation effects on consolidation and for changes in the Group structure

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Net sales	1,027	1,012	3,899	3,773
Net sales compared with the corresponding period in the preceding year	–1,012	–1083	–3,773	–3,709
Net sales, change	15	–71	126	64
Structural changes	0	–36	–93	–355
Exchange rate changes	–51	4	–132	67
Organic change	–36	–103	–99	–224
Organic change	–3.5%	–9.5%	–2.6%	–6.0%
Structural changes	0.0%	3.3%	2.5%	9.5%
Exchange rate changes	5.0%	–0.4%	3.5%	–1.8%

Organic change in net sales of own brands. Net change in sales of own brands between years adjusted for translation effects on consolidation and for changes in the Group structure

SEK million	Oct–Dec 2022	Oct–Dec 2021	Full year 2022	Full year 2021
Net sales own brands	692	691	2,667	2,622
Net sales own brands compared with the corresponding period in the preceding year	–691	–729	–2,622	–2,550
Net sales own brands, change	1	–38	45	72
Structural changes	0	–16	–47	–191
Exchange rate changes	–33	2	–85	45
Organic change own brands	–32	–52	–87	–74
Organic change	–4.6%	–7.1%	–3.3%	–2.9%
Structural changes	0.0%	2.3%	1.8%	7.5%
Exchange rate changes	4.8%	–0.3%	3.2%	–1.8%

Consolidated quarterly data

SEK million	2022 Q4	2022 Q3	2022 Q2	2022 Q1	2021 Q4	2021 Q3	2021 Q2	2021 Q1	2020 Q4	2020 Q3	2020 Q2	2020 Q1
Net sales	1,027	944	956	972	1,012	893	903	965	1,083	821	859	946
Expenses for goods sold	–797	–775	–731	–718	–770	–652	–646	–690	–784	–598	–619	–671
Gross profit	230	169	225	254	242	241	257	275	299	223	240	275
Selling expenses	–159	–567	–162	–157	–148	–138	–155	–151	–161	–128	–123	–130
Administrative expenses	–76	–72	–76	–74	–76	–67	–73	–73	–88	–60	–70	–66
Other operating income	3	3	2	2	3	12	13	7	17	16	17	2
Other operating expenses	–4	–1	–2	–3	–4	0	0	–4	–1	–4	9	–10
Operating profit	–6	–468	–13	22	17	48	42	54	66	47	73	71
Result from participations in joint ventures	–	–	–	–	–	–	–	–	–	–	–8	0
Financial income	12	20	25	10	5	4	–5	7	7	3	–29	33
Financial expenses	–39	–35	–39	–18	–16	–16	–7	–18	–22	–10	16	–43
Profit/loss before tax	–33	–483	–27	14	6	36	30	43	51	40	52	61
Tax on profit for the period	18	5	7	–2	–5	–5	–6	–10	4	–6	–12	–14
Profit for the period	–15	–478	–20	12	1	31	24	33	55	34	40	47
Items affecting comparability
Items affecting comparability included in operating profit	11	478	6	–	3	–6	–3	2	7	–10	–11	–
Operating profit, before items affecting comparability	5	10	–7	22	20	42	39	56	73	37	62	71
Depreciation/amortisation and impairment
Depreciation/amortisation and impairment included
in operating income	45	515	41	40	41	42	47	38	41	35	35	36
EBITDA	39	47	28	62	58	90	89	92	107	82	108	107
Depreciation/amortisation, impairment and items affecting comparability
Depreciation/amortisation, impairment and items affecting comparability included in operating profit	51	518	47	40	44	32	36	40	48	25	24	36
EBITDA, before items affecting comparability	45	50	34	62	61	80	78	94	114	72	97	107
Free cash flow	120	22	53	–15	–25	–8	–35	–26	102	64	84	2
Cash flow from operating activities	128	29	54	–8	–16	0	–29	–19	113	71	89	10
Number of employees as of the balance sheet date	780	801	826	859	849	819	836	831	834	723	730	713

Exchange rates

	Average exchange rate		Closing day rate
SEK	Jan‒Dec 2022	Jan‒Dec 2021	31 Dec 2022	31 Dec 2021
DKK	1.4290	1.3641	1.4965	1.3753
EUR	10.6317	10.1449	11.1283	10.2269
GBP	12.4669	11.8022	12.5811	12.1790
NOK	1.0523	0.9980	1.0572	1.0254
USD	10.1245	8.5815	10.4371	9.0437

Midsona AB (publ)

Corporate identity number: 556241-5322 Visiting address: Dockplatsen 16, Malmö, Sweden Postal address: Box 210 09, SE-200 21 Malmö, Sweden Telephone: +46 40 601 82 00 E-mail: info@midsona.com www.midsona.com