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Probi — Interim / Quarterly Report 2020
Oct 21, 2020
3099_10-q_2020-10-21_49770134-db1b-4bcb-8f3f-3e759da95f74.pdf
Interim / Quarterly Report
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- Net sales increased by 38% (43% adjusted for currency changes) to SEK 195 m (142). Positive one-off effect of around SEK 15 m from an American customer's product update program.
- The EBITDA margin was 32% (32%).
- New vice president R&D recruited starting September.
- New research study with Lund University published showing a link between probiotics and reduced side-effects from stress.
• Acquisition of shares in Vital Nutrients Holdings and entering into strategic partnership. Total amount of USD 6 m with an ownership slightly below 10%.
| Jul-Sep | Jan-Sep | Full-year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2020 | 2019 | 2020 | 2019 | RTM | 2019 |
| Net sales | 194.6 | 141.6 | 532.4 | 460.1 | 698.5 | 626.2 |
| Growth, % | 37.5% | -16.1% | 15.7% | 4.3% | 11.6% | 3.7% |
| Currency adjusted growth, % | 43.2% | -21.9% | 15.8% | 0.4% | 5.2% | 0.1% |
| Gross margin, % | 45.7% | 45.8% | 43.5% | 46.2% | 44.4% | 46.6% |
| EBITDA | 61.5 | 45.4 | 149.4 | 130.1 | 202.7 | 183.4 |
| EBITDA margin, % | 31.6% | 32.1% | 28.1% | 28.3% | 29.0% | 29.3% |
| Operating profit (EBIT) | 44.1 | 26.7 | 93.9 | 77.1 | 128.4 | 111.5 |
| EBIT margin, % | 22.6% | 18.8% | 17.6% | 16.7% | 18.4% | 17.8% |
| Net income | 33.2 | 21.7 | 70.9 | 60.0 | 96.7 | 85.9 |
| Earnings per share before and after dilution, SEK | 2.91 | 1.90 | 6.22 | 5.27 | 8.49 | 7.54 |
See note 5 for definitions of ratios not defined according to IFRS
This information is information that Probi AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the CEO and CFO, on October 21, 2020 at 08:00 CET. This a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.
We delivered the strongest quarter in our history with sales growth of 38% compared with last year. Growth was mainly driven by Americas, which had a strong quarter. The EBITDA margin for the group in the third quarter was 32%, which is on a par with last year, and for the nine-month period we had an EBITDA margin of 28%.
Demand for our products continues to be strong in Americas and the negative effects of COVID-19 have been limited. The strong growth in the region of 50% over the quarter is partly explained by the product update that one of our major customers is carrying out, but the majority of our growth comes from increased demand from both existing and new customers. We continue to view our growth opportunities in Americas positively, but at the same time note that variations between quarters can occur depending on how customer orders fall.
Developments in EMEA and APAC have been weaker, with the regions being negatively affected by the stock building up that took place during the previous quarter, driven by the COVID-19 pandemic. Although we judge that these are temporary fluctuations, we are not satisfied with the performance. We have taken measures, especially in our organization in Asia, and see continued strong growth potential in the region.
Our investment program in the manufacturing facilities in the US is developing according to plan. With these investments made, we will have a stronger production capacity next year and at the same time be able to
reduce production costs, which is expected to lead to a positive effect on the gross margin.
Exploring new product areas continues and in August we were able to publish a research study, together with Lund University, which shows a link between probiotics and reduced side effects of acute psychosocial stress. This is potentially a very exciting area where we see attractive opportunities in the future.
I am pleased to now have a complete management team at Probi following our latest recruitment of Peter Dybdahl Hede as the new Vice President R&D. Peter took up his position in September and has extensive experience in R&D from the biotech and pharmaceutical industries.
On the 20th October we announced our acquisition of shares in Vital Nutrients Holdings. The acquisition is part of a strategic partnership with great potential to get leverage on our operations within the companies in the Vital Nutrients Holdings.
Our employees have shown an amazing ability to handle this exceptional time. Although we have all had to challenge ourselves and find new, creative solutions, we have not lost focus. The level of activity at Probi is high in all areas and with the deal with Vital Nutrients Holdings we show our commitment to reach our growth target.
Tom Rönnlund CEO
During the quarter, Probi's net sales amounted to SEK 194.6 m (141.6), which corresponded to an increase of SEK 53.0 m or 38%. Adjusted for exchange rate effects, net sales amounted to SEK 203 m, corresponding to an increase of 43%.
The total increase of SEK 53.0 m is explained by strong growth in the Americas which rose by SEK 55.4 m (+50%) at the same time as EMEA declined by SEK 0.9 m (-5%) and APAC fell by SEK 1.5 m (-14%).
The Americas share of total net sales increased during the quarter and amounted to 86%. EMEA represents 10% and APAC 4% of total net sales.
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| SEK m | 2020 | 2019 | Change, % | 2020 | 2019 | Change, % |
| Americas | 166.7 | 111.3 | 49.8% | 410.5 | 340.9 | 20.4% |
| EMEA | 19.3 | 20.2 | -4.6% | 81.8 | 83.8 | -2.3% |
| APAC | 8.6 | 10.1 | -14.3% | 40.1 | 35.4 | 13.5% |
| Net sales | 194.6 | 141.6 | 37.5% | 532.4 | 460.1 | 15.7% |
Net sales amounted to SEK 532.4 m (460.1), which corresponds to an increase of 16%. Adjusted for exchange rate effects, this corresponds to an increase of 16%. The total rise of SEK 72.3 m is mainly explained by
strong growth in the Americas which amounted to an increase of SEK 69.5 m (+20%). EMEA fell by SEK 2.0 m (-2%) while APAC rose by SEK 4.7 m (+14%).
The operating profit for Q3 amounted to SEK 44.1 m (26.7), which corresponds to an increase of SEK 17.4 m or 65%. Adjusted for currency effects, the operating profit amounted to SEK 45.4 m. The improved operating profit was mainly due to a higher gross profit in the Americas, which rose by SEK 27.5 m or 59%.
Sales and marketing expenses amounted to SEK 24.4 m (22.2), corresponding to an increase of 10%, which was due to increased commercial resources in the Americas and APAC. At the same time, costs in connection with customer activities have been lower as a result of travel restrictions due to COVID-19 and a conversion to more digital arrangements.
Despite there being difficulties in starting new studies during the period as a result of COVID-19, there has been high level activity in research and development, which has meant that R&D costs rose in the quarter by 22% to SEK 7.9 m (6.5).
Administrative expenses amounted to SEK 12.6 m (9.5 m), corresponding to an increase of 32%. The increase was due to a strengthening of the organization, coupled with higher costs for business development.
| Jul-Sep | Jan-Sep | ||||||
|---|---|---|---|---|---|---|---|
| SEK m | 2020 | 2019 | Change, % | 2020 | 2019 | Change, % | |
| Gross profit Americas | 73.8 | 46.3 | 59.3% | 162.8 | 137.6 | 18.3% | |
| Gross profit EMEA | 10.6 | 13.3 | -20.0% | 47.4 | 54.1 | -12.3% | |
| Gross profit APAC | 4.5 | 5.3 | -15.1% | 21.3 | 21.1 | 1.2% | |
| Gross profit | 88.9 | 64.9 | 37.0% | 231.5 | 212.8 | 8.8% | |
| Sales and marketing expenses | -24.4 | -22.2 | 10.3% | -71.5 | -80.5 | -11.2% | |
| Research and development expenses | -7.9 | -6.5 | 21.8% | -25.2 | -23.0 | 9.6% | |
| Administration expenses | -12.6 | -9.5 | 32.2% | -41.2 | -34.2 | 20.6% | |
| Other operating income | 0.1 | 0.0 | 139.7% | 0.3 | 2.0 | -85.9% | |
| Operating profit (EBIT) | 44.1 | 26.7 | 65.2% | 93.9 | 77.1 | 21.8% |
The Group's financial result for Q3 was SEK -1.2 m (0.9). The finance net excluding exchange rate result amounted to SEK -0.5 m (-0.7) and consists of interest on leasing contracts in accordance with IFRS 16. Exchange rate gains and losses on the translation of cash and cash equivalents in other currencies are reported in exchange rate earnings from financing activities. An exchange rate loss of SEK -0.8 m (1.6) arose in Q3 as a result of a stronger Swedish krona.
The profit for the period for Q3 was SEK 33.2 m (21.7). The tax cost amounted to SEK 9.6 m (5.9).
Earnings per share in Q3 was SEK 2.91 (1.90).
Probi's operating segments are based on a geographical division and consist of the Americas (North and South America), EMEA (Europe, the Middle East and Africa) and APAC (Asia and the Pacific).
The Americas had a strong third quarter and net sales rose by 50% to SEK 166.7 m compared with last year, which was also a relatively weak quarter for the region. Demand for Probi's products has been good and sales of premium products continue to increase. In general, growth in customers' e-commerce channels has been strong throughout the year and appears to continue to develop well. Growth in the quarter came from both
increased demand from existing customers and several orders from new customers. Of the total sales increase of SEK 55.4 m, around SEK 15 m consisted of a stock build-up in connection with a planned product update at one of Probi's larger customers. The gross margin in the quarter amounted to 44% (42%) and has strengthened as a result of the increased volumes in the quarter together with a favorable product mix.
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| SEK m | 2020 | 2019 | Change, % | 2020 | 2019 | Change, % |
| Net Sales | 166,7 | 111,3 | 49,8% | 410,5 | 340,9 | 20,4% |
| Cost of goods sold | -92,9 | -64,9 | 43,0% | -247,8 | -203,3 | 21,9% |
| Gross profit | 73,8 | 46,4 | 59,0% | 162,7 | 137,6 | 18,2% |
| Gross margin | 44,3% | 41,7% | 2,6 ppt | 39,6% | 40,4% | -0,8 ppt |
Net sales in EMEA fell by SEK 0.9 m (-5%) in Q3 compared with the previous year. In connection with COVID-19, there was an increase in demand from customers during the first half of the year to ensure the supply of Probi's products. This has driven a stock buildup, which meant weaker demand in Q3. During the quarter, the first order was received within the
framework of the pan-European partnership agreement signed during Q2. The launch is planned for 2021. The gross margin for the quarter was 55% (66%). The decrease is explained by a redistribution of SEK 5 m from royalty income to sales of goods in EMEA at the same time as the customer also bought products in Americas.
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| SEK m | 2020 | 2019 | Change, % | 2020 | 2019 | Change, % |
| Net Sales | 19,3 | 20,2 | -4,6% | 81,8 | 83,8 | -2,3% |
| Cost of goods sold | -8,7 | -6,9 | 25,1% | -34,4 | -29,7 | 15,7% |
| Gross profit | 10,6 | 13,3 | -20,0% | 47,4 | 54,1 | -12,3% |
| Gross margin | 55,2% | 65,8% | -10,6 ppt | 58,0% | 64,5% | -6,5 ppt |
APAC reported a weak Q3 with a decrease in net sales of SEK 1.5 m (-14%) compared with last year, which was a weak comparative quarter. The region is still affected by the effects of COVID-19, which has meant stock build-up at Probi's customers and limited opportunities for new customer processing. However, a certain
increase in activity is noticeable with new customers in South Korea, among others. In China, pilot studies have started for a launch with one of Probi's US customers. The gross margin was 52% (52%), which was on a par with last year.
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| SEK m | 2020 | 2019 | Change, % | 2020 | 2019 | Change, % |
| Net Sales | 8,6 | 10,1 | -14,3% | 40,1 | 35,4 | 13,5% |
| Cost of goods sold | -4,2 | -4,8 | -13,4% | -18,8 | -14,3 | 31,5% |
| Gross profit | 4,4 | 5,3 | -17,0% | 21,3 | 21,1 | 1,2% |
| Gross margin | 50,6% | 52,2% | -1,6 ppt | 53,1% | 59,5% | -6,4 ppt |
Cash flow from operating activities before changes in working capital improved to SEK 61.1 m (47.1) as a result of strong underlying business activities.
Working capital increased as a result of the stock build-up in connection with the launch of an updated product range for a major customer in the US. During the corresponding period last year, large customer payments were received, which had a major positive impact on the quarter. Cash flow from operating activities was SEK 40.4 m (75.8).
Cash flow from investment activities amounted to SEK -11.4 m (-16.3) and consisted of investments in intangible and tangible assets.
Cash flow from financing activities was SEK -3.6 m (-23.5), which mainly consisted of amortization of leasing liabilities. The corresponding period last year included an amortization of bank loans of SEK -20.0 m.
Cash flow for the period was SEK 22.3 m (40.9) and cash and cash equivalents amounted to SEK 209.8 m (185.6)
During Q3, investments in intangible assets amounted to SEK 2.1 m (2.0), of which SEK 1.2 m (1.2) was for patents and SEK 0.9 m (0.8) was for capitalized development expenses. Investments in tangible assets amounted to SEK 9.4 m (14.3), which primarily refers to investments in the manufacturing unit at Redmond.
Probi had 171 (157) employees at the end of the period, of which 52% (50%) were women. The average number of employees during the year was 167 (164).
During Q3, Probi's revenue from its largest owner, Symrise, amounted to SEK 1.3 m (SEK 0.0 m) and refers to sales of ingredients for a skin care product developed through a collaboration between Probi and Symrise. During the first nine months of the year, the amount was SEK 4.5 m (SEK 0.0 m). During the first nine months of the year, Probi's costs from Symrise amounted to SEK 0.0 m (0.1). No other transactions with related parties occurred during the reporting period.
In connection with COVID-19, the main current issues are the risks of changing consumer trends and the company's supply of goods that are being updated. These risks, together with other risks and uncertainties to which Probi's operations are exposed, are described on pages 44-45 of the printed annual report for 2019.
During Q3, the parent company's operating income fell to SEK 63.4 m (84.0). The profit after tax was SEK 15.0 m (33.0). Investments in tangible and intangible assets amounted to SEK 2.1 m (2.7). For further details, please see information for the Group.
Year-end report 2020 February 9, 2021 Interim report Q1 2021 April 23, 2021 Annual General Meeting 2020 May 7, 2021 Interim report Q2 2021 July 16, 2021 Interim report Q3 2021 October 22, 2021 Year-end report 2021 February 2, 2022
Probi's interim report for Q3 2020 was published on October 21, 2020 at 8.00 am. On the same day at 10.00, a teleconference will be held with Tom Rönnlund, CEO and Henrik Lundkvist, CFO, who will present the report. The conference call can be reached on telephone number +46 (0)8 50 55 83 68. The presentation is available at www.probi.com and www.financialhearings.com
Tom Rönnlund, CEO Tel: +46 (0)46 286 89 40 Email: [email protected]
Henrik Lundkvist, CFO Tel: +46 (0)46 286 89 41 Email: [email protected]
The Board of Directors and Chief Executive Officer declare that this interim report gives a true and fair view of the parent company and the Group's operations, financial position and results, and describes the significant risks and uncertainties facing the parent company and the Group.
Lund, October 21, 2020
Jean-Yves Parisot Chairman of the Board
Irène Corthésy Malnoë Board member
Malin Ruijsenaars Board member
Jörn Andreas Board member
Charlotte Hansson Board member
Tom Rönnlund CEO
This interim report has not been subject to review by the company's auditors.
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| SEK 000 | Notes | 2020 | 2019 | 2020 | 2019 | |
| Net sales | 2 | 194,649 | 141,590 | 532,399 | 460,055 | |
| Cost of goods sold | 3 | -105,718 | -76,675 | -300,914 | -247,282 | |
| Gross profit | 88,931 | 64,915 | 231,485 | 212,773 | ||
| Sales and marketing expenses | -24,446 | -22,259 | -71,535 | -80,548 | ||
| Research and development expenses | -7,930 | -6,513 | -25,213 | -22,998 | ||
| Administration expenses | -12,568 | -9,509 | -41,136 | -34,184 | ||
| Other operating income | 73 | 31 | 283 | 2,013 | ||
| Operating profit (EBIT) | 44,060 | 26,665 | 93,884 | 77,056 | ||
| Financial income | 13 | 278 | 231 | 948 | ||
| Financial expenses | -478 | -977 | -1,684 | -3,289 | ||
| Exchange result financing activities | 4 | -780 | 1,647 | -445 | 1,813 | |
| Financial result | -1,245 | 948 | -1,898 | -528 | ||
| Earnings before income taxes | 42,815 | 27,613 | 91,986 | 76,528 | ||
| Income taxes | -9,641 | -5,936 | -21,124 | -16,482 | ||
| Net income | 33,174 | 21,677 | 70,862 | 60,046 | ||
| Other comprehensive income | ||||||
| Components to be reclassified to net income | ||||||
| Exchange rate differences resulting from the translation of foreign operations |
-37,444 | 54,373 | -34,498 | 85,478 | ||
| Cash flow hedge (currency hedges) | 176 | -461 | -204 | -1,372 | ||
| Income taxes payable on these components | -37 | 98 | 44 | 293 | ||
| Sum of other comprehensive income | -37,305 | 54,010 | -34,658 | 84,399 | ||
| Total comprehensive income | -4,131 | 75,687 | 36,204 | 144,445 | ||
| Number of outstanding shares at end of the reporting period | 11,394,125 | 11,394,125 | 11,394,125 | 11,394,125 | ||
| Average number of shares | 11,394,125 | 11,394,125 | 11,394,125 | 11,394,125 | ||
| Earnings per share before and after dilution | 2.91 | 1.90 | 6.22 | 5.27 |
The profit for the period and comprehensive income are attributable in their entirety to the Parent Company's shareholders. The company has no outstanding convertible loans or warrants, so dilution does not occur.
In 2011, Probi bought back company shares and owned 250,000 treasury shares at the end of the reporting period, corresponding to 2.1% of the total number of shares. The quotient value per share is SEK 5.00.
| SEK 000 | 30 September 2020 |
31 December 2019 |
|---|---|---|
| ASSETS | ||
| Capitalized Development Cost | 39,557 | 42,775 |
| Customer base | 268,983 | 297,832 |
| Technology and other intangible assets | 126,589 | 141,139 |
| Goodwill | 305,141 | 316,202 |
| Property, plant and equipment | 60,545 | 46,785 |
| Right-of-use assets | 49,206 | 60,535 |
| Deferred tax assets | 35 | 6,008 |
| Non-current assets | 850,056 | 911,276 |
| Inventories | 109,003 | 79,497 |
| Trade receivables | 105,520 | 83,341 |
| Other assets and receivables | 9,794 | 8,534 |
| Cash and cash equivalents | 209,761 | 206,960 |
| Current assets | 434,078 | 378,332 |
| Total assets | 1,284,134 | 1,289,608 |
| EQUITY AND LIABILITIES | ||
| Total equity | 1,176,936 | 1,152,126 |
| Non-current lease liabilities | 39,865 | 46,612 |
| Other non-current liabilities | 6,755 | 4,952 |
| Non-current liabilities | 46,620 | 51,564 |
| Trade payables | 21,444 | 37,631 |
| Current lease liabilities | 10,784 | 14,556 |
| Other current liabilities | 28,350 | 33,731 |
| Current liabilities | 60,578 | 85,918 |
| Total liabilities | 107,198 | 137,482 |
| Total equity and liabilities | 1,284,134 | 1,289,608 |
| SEK 000 | Share capital |
Other contributions received |
Cumulative translation differences |
Other reserves |
Accumulated profit |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance, 1 Jan 2019 | 58,221 | 600,205 | 23,930 | 139 | 347,627 | 1,030,122 |
| Net income | — | — | — | — | 60,046 | 60,046 |
| Other comprehensive income | — | — | 85,478 | -1,079 | — | 84,399 |
| Total Comprehensive Income | — | — | 85,478 | -1,079 | 60,046 | 144,445 |
| Dividends | — | — | — | — | — | — |
| Total transactions with shareholders | — | — | — | — | — | — |
| Closing balance, 30 Sep 2019 | 58,221 | 600,205 | 109,408 | -940 | 407,673 | 1,174,567 |
| SEK 000 | Share capital |
Other contributions received |
Cumulative translation differences |
Other reserves |
Accumulated profit |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance, 1 Jan 2020 | 58,221 | 600,205 | 59,969 | 217 | 433,514 | 1,152,126 |
| Net income | — | — | — | — | 70,862 | 70,862 |
| Other comprehensive income | — | — | -34,498 | -160 | — | -34,658 |
| Total Comprehensive Income | — | — | -34,498 | -160 | 70,862 | 36,204 |
| Dividends | — | — | — | — | -11,394 | -11,394 |
| Closing balance, 30 Sep 2020 | 58,221 | 600,205 | 25,471 | 57 | 492,982 | 1,176,936 |
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| SEK 000 | 2020 | 2019 | 2020 | 2019 |
| Net income | 33,174 | 21,677 | 70,862 | 60,046 |
| Adjustments to reconcile net income to cash from operating activities |
||||
| Income taxes | 9,641 | 5,936 | 21,125 | 16,482 |
| Interest result | 424 | 511 | 1,237 | 1,911 |
| Amortization, depreciation and impairment of non-current assets | 17,420 | 18,752 | 55,529 | 53,060 |
| Other non-cash expenses and income | 398 | 236 | 2,997 | 804 |
| Cash flow before working capital changes | 61,057 | 47,112 | 151,750 | 132,303 |
| Change in trade receivables and other current assets | 8,966 | 43,494 | -24,472 | 21,945 |
| Change in inventories | -5,455 | -8,599 | -33,437 | -6,759 |
| Change in trade payables and other current liabilities | -18,828 | -1,929 | -8,715 | -903 |
| Income taxes paid | -5,338 | -4,252 | -27,698 | -12,055 |
| Cash flow from operating activities | 40,402 | 75,826 | 57,428 | 134,531 |
| Payments for investing in intangible assets | -2,058 | -1,997 | -7,287 | -6,711 |
| Payments for investing in property, plant and equipment | -9,368 | -14,345 | -22,832 | -18,842 |
| Divestments of tangible assets | — | 6 | — | 27 |
| Cash flow from investing activities | -11,426 | -16,336 | -30,119 | -25,526 |
| Interest paid | -482 | -644 | -1,309 | -2,437 |
| Interest received | -3 | 278 | 93 | 948 |
| Redemption of bank borrowings | — | -20,000 | — | -119,000 |
| Repayments for lease obligations | -3,144 | -3,130 | -9,985 | -9,239 |
| Dividends paid | — | — | -11,394 | — |
| Cash flow from financing activities | -3,629 | -23,496 | -22,595 | -129,728 |
| Cash flow for the period | 25,347 | 35,994 | 4,714 | -20,723 |
| Effects of changes in exchange rates | -3,036 | 4,898 | -1,913 | 7,042 |
| Change in cash and cash equivalents | 22,311 | 40,892 | 2,801 | -13,681 |
| Cash and cash equivalents at opening balance | 187,450 | 144,726 | 206,960 | 199,299 |
| Cash and cash equivalents at closing balance | 209,761 | 185,618 | 209,761 | 185,618 |
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| SEK 000 | 2020 | 2019 | 2020 | 2019 |
| Operating revenue | 63,370 | 83,965 | 219,503 | 273,907 |
| Operating costs | -13,718 | -27,748 | -68,224 | -87,159 |
| Gross profit | 49,652 | 56,217 | 151,279 | 186,748 |
| Operating profit (EBIT) | 19,839 | 32,570 | 59,337 | 95,476 |
| Result from financial income and expenses | -807 | 1,240 | 142 | 245 |
| Income before tax | 19,032 | 33,810 | 59,479 | 95,721 |
| Net income | 15,029 | 26,490 | 46,636 | 74,782 |
| Jul-Sep | Jan-Sep | ||||
|---|---|---|---|---|---|
| SEK 000 | 2020 | 2019 | 2020 | 2019 | |
| Net income | 15,029 | 26,490 | 46,636 | 74,782 | |
| Cash flow hedge (currency hedges) | 178 | -462 | -203 | -1,373 | |
| Income taxes payable on these components | -39 | 99 | 43 | 294 | |
| Sum of other comprehensive income | 139 | -363 | -160 | -1,079 | |
| Total comprehensive income | 15,168 | 26,127 | 46,476 | 73,703 |
| SEK 000 | 30 September 2020 |
31 December 2019 |
|---|---|---|
| ASSETS | ||
| Non-current assets | 973,152 | 976,497 |
| Current assets | 200,324 | 186,145 |
| Total assets | 1,173,476 | 1,162,642 |
| EQUITY AND LIABILITIES | ||
| Equity | 1,143,015 | 1,107,933 |
| Non-current liabilities | 4,035 | 4,035 |
| Current liabilities | 26,426 | 50,674 |
| Total equity and liabilities | 1,173,476 | 1,162,642 |
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The condensed financial statements in the interim report encompass pages 9-16. Disclosures according to IAS 34 Interim Financial Reporting are provided both here and elsewhere in the interim report. ESMA's guidelines apply to alternative performance measures.
The accounting policies applied in the preparation of these consolidated financial statements have been applied consistently for all presented periods, unless otherwise stated. The complete accounting policies can be found on pages 60-63 of the printed 2019 Annual Report.
The parent company's functional currency is the Swedish krona (SEK), which is also the reporting currency for both the parent company and the Group. All amounts stated have been rounded to the nearest thousand kronor, unless otherwise stated. Amounts and figures in parentheses pertain to comparative figures for the year-earlier period. Amounts are stated in Swedish kronor (SEK), thousands of Swedish kronor (TSEK) or s of Swedish kronor (SEKM) according to the unit stated.
The parent company applies the same accounting policies as the Group, with the exception of IFRS 16 Leases and the exemptions and supplements stipulated in RFR 2, Accounting for Legal Entities. The interim report complies with the Swedish Annual Accounts Act.
A breakdown per category of the Group's net sales from contracts with customers is presented below:
| Jul-Sep 2020 | Jul-Sep 2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 165,027 | 18,597 | 8,619 | 192,243 | 108,072 | 14,225 | 10,047 | 132,344 |
| Royalty | 1,685 | 709 | 11 | 2,405 | 3,210 | 6,014 | 22 | 9,246 |
| Net sales | 166,712 | 19,306 | 8,630 | 194,648 | 111,282 | 20,239 | 10,069 | 141,590 |
| Jan-Sep 2020 | Jan-Sep 2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 405,444 | 79,960 | 40,119 | 525,523 | 330,499 | 60,736 | 35,364 | 426,599 |
| Royalty | 4,968 | 1,878 | 29 | 6,875 | 10,369 | 23,065 | 22 | 33,456 |
| Net sales | 410,412 | 81,838 | 40,148 | 532,398 | 340,868 | 83,801 | 35,386 | 460,055 |
The following table shows the exchange gains and losses from operating activities that are recognized under cost of goods sold:
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| SEK 000 | 2020 | 2019 | 2020 | 2019 |
| Exchange gains operating activities | -121 | 5,523 | 4,456 | 8,816 |
| Exchange losses operating activities | -1,984 | -4,228 | -6,151 | -6,521 |
| Exchange result operating activities | -2,105 | 1,295 | -1,695 | 2,295 |
The following table shows the exchange gains and losses from financing activities that are recognized in the financial results:
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| SEK 000 | 2020 | 2019 | 2020 | 2019 |
| Exchange gains financing activities | 720 | 1,724 | 3,935 | 2,738 |
| Exchange losses financing activities | -1,500 | -77 | -4,381 | -925 |
| Exchange result financing activities | -780 | 1,647 | -446 | 1,813 |
The company presents some financial measures in the interim report that are not defined in IFRS. The company believes that these measures provide valuable supplementary information to investors and company management. Since not all companies calculate alternative performance measures in the same way, they are not always comparable with the measures used by other companies. However, these non-IFRS measures should not be considered substitutes for financial reporting measures prepared in accordance with IFRS. The following alternative performance measures are presented in the interim report:
The operating profit (EBIT) is defined as the profit before financial income, expenses and tax for the period and is used as a measure the company's profitability.
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| SEK 000 | 2020 | 2019 | 2020 | 2019 |
| Net income | 33,174 | 21,677 | 70,862 | 60,046 |
| Income taxes | 9,641 | 5,936 | 21,124 | 16,482 |
| Financial result | 1,245 | -948 | 1,898 | 528 |
| Operating profit (EBIT) | 44,060 | 26,665 | 93,884 | 77,056 |
EBITDA is defined as the operating profit (EBIT) before depreciation/amortization and impairment and is used as a measure of the company's profitability.
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| SEK 000 | 2020 | 2019 | 2020 | 2019 |
| Operating profit (EBIT) | 44,060 | 26,665 | 93,885 | 77,056 |
| Depreciation and amortization | 17,420 | 18,752 | 55,529 | 53,060 |
| EBITDA | 61,480 | 45,417 | 149,414 | 130,116 |
| Gross margin | Defined as gross profit divided by net sales |
Used to measure product profitability |
|---|---|---|
| EBITDA margin | Defined as EBITDA divided by net sales |
Used to measure the company's profitability before depreciation/amortization and impairment of tangible and intangible assets |
| Currency adjusted growth | Defined as net sales for the year translated at the preceding year's exchange rates divided by the preceding year's net sales |
Used to measure underlying net sales growth |
| RTM | Rolling twelve months. Indicates full year figure for the last four quarters |
Gives an indication of the development without having to wait for the comparative period next year |
| Operating margin | Defined as the operating profit divided by net sales |
Used to measure the company's profitability |
Probi AB is a Swedish publicly traded bioengineering company. Probi's vision is to help people live healthier lives by delivering effective, well-documented probiotics with proven health benefits based on scientific research. Founded by scientists in Sweden in 1991, Probi is a multinational company active in over 40 markets around the world and holding over 400 patents worldwide. In 2019, Probi had sales of SEK 626 m. Probi's shares are listed on Nasdaq Stockholm, Mid-cap. Probi had around 4,000 shareholders on December 31, 2019.